Asia Stocks Flat, Oil Falls Ahead of Fed Meeting and Ukraine Talks
Asian markets traded flat on Tuesday while oil prices slipped, as investors awaited a major central bank gathering and monitored diplomatic progress between Russia and Ukraine.
European Futures Rise on Ukraine Optimism
European equity futures edged higher after Ukrainian President Volodymyr Zelenskiy said security guarantees for his country could be finalized within 10 days. His comments followed talks with U.S. President Donald Trump and European leaders.
Euro Stoxx 50 futures rose 0.2%, while Germany’s DAX and the FTSE 100 gained 0.1% each.
Japan’s Nikkei Hits Record Before Pullback
Japan’s Nikkei index touched a new intraday record but later slipped 0.1%. The decline was weighed down by a sharp 2.5% fall in SoftBank shares after the company announced a $2 billion investment in struggling U.S. chipmaker Intel.
Fed Meeting in Focus at Jackson Hole
Investors are closely watching the Federal Reserve’s annual Jackson Hole symposium starting August 21. Fed Chair Jerome Powell is expected to discuss the economic outlook and policy direction.
Kyle Rodda of Capital.com said, “The Jackson Hole Symposium looms as one potential source of volatility. Markets remain cautious.”
Money markets now show an 83.6% probability of a quarter-point rate cut at the Fed’s September 17 meeting, according to CME FedWatch.
Geopolitical Developments
NATO Secretary General Mark Rutte called Trump’s talks with Zelenskiy and European leaders “very successful.” The discussions followed Trump’s summit in Alaska with Russian President Vladimir Putin, which did not produce a ceasefire agreement.
Trump later confirmed he had spoken with Putin and is planning a trilateral summit with Putin and Zelenskiy.
Market Moves
- MSCI Asia-Pacific Index (ex-Japan): down 0.1%
- U.S. dollar: steady, at 147.78 yen and $1.1663 per euro
- Oil prices: U.S. crude fell 0.8% to $62.92, Brent down 0.7% to $66.15
- Gold: up 0.2% to $3,337.41 per ounce
- Bitcoin: down 1% to $115,257.59
- Ethereum: down 2.7% to $4,224.33
Outlook
Despite comparisons to past market cycles, analysts say current conditions are not yet alarming. Capital Economics noted that lower yields tend to support small caps and cyclicals, but stressed there is no clear signal of a major downturn.
