U.S. and European equity futures are modestly firmer as investors digest Trump’s summit with Putin and look ahead to his meeting with Zelenskiy. With no new sanctions or shocks emerging from the weekend, markets took the “no bad news” outcome as good enough - Asian equities climbed, China’s blue-chips hit decade highs, and India rallied hard on consumption-tax cut plans. Safe havens were steady: Treasuries inched higher (10-year at 4.30%), gold gained, while crypto sold off and crude moved sideways.
Attention now shifts from geopolitics to monetary policy. The Fed’s Jackson Hole gathering looms large, with Powell’s speech on Friday likely to shape expectations for a September rate cut—already seen as a near certainty. Traders are bracing for Powell’s tone to either validate or challenge aggressive easing bets, with markets positioned for at least two cuts this year.
Markets remain supported by the absence of fresh negatives, but the Ukraine front is far from settled. Kyiv heads into Washington wary that Trump could pressure Zelenskiy into concessions, even as European allies push for security guarantees. For now, the hope of progress is enough to keep sentiment risk-positive.
On the news front, today is light; later in the week we have FOMC minutes, and the Jackson Hole Symposium kicks off on Thursday.
