European equities were mostly lower on Monday as investors awaited a high-stakes meeting in Washington between European leaders and U.S. President Donald Trump to discuss Ukraine’s future.
By 07:10 GMT, Germany’s DAX index had fallen 0.3%, France’s CAC 40 slipped 0.2%, while the U.K.’s FTSE 100 edged up 0.1%.
European Leaders Travel to Washington
Following last Friday’s Alaska summit between Trump and Russian President Vladimir Putin, which ended without a ceasefire in Ukraine, attention now turns to a gathering in Washington. Ukrainian President Volodymyr Zelensky and European leaders are expected to discuss potential pathways to a peace deal.
Reports indicate Zelensky may face pressure to accept a settlement that could involve Ukraine giving up portions of its eastern regions, including Donetsk and Luhansk, while Russia withdraws from southern areas such as Kherson and Zaporizhzhia. Ukraine has consistently rejected any proposal to cede territory.
Trump commented on Sunday that Zelensky could end the war with Russia “almost immediately” if he agreed to Moscow’s demands.
The conflict, which has lasted more than three years, has disrupted global supply chains, driven commodity prices higher, and slowed worldwide economic growth.
Jackson Hole Symposium in Focus
On the economic front, Europe will see June trade data released on Monday, while the U.S. market is looking ahead to the Federal Reserve’s Jackson Hole symposium. Fed Chair Jerome Powell will address the economic outlook and policy framework on Friday, joined by ECB President Christine Lagarde and Bank of England Governor Andrew Bailey in panel discussions.
Markets are currently pricing in about an 85% chance of a Fed rate cut in September, meaning any less dovish tone from Powell could weigh on investor sentiment.
U.S. Retail Earnings in Spotlight
Although European markets see little corporate earnings activity on Monday, attention will shift to the U.S. retail sector this week, with Home Depot (NYSE:HD), Target (NYSE:TGT), Lowe’s (NYSE:LOW), and Walmart (NYSE:WMT) all scheduled to report. Analysts point to a solid earnings season, with Goldman Sachs noting that S&P 500 EPS rose 11% year-on-year and 58% of companies boosted their full-year guidance.
Oil Prices Stabilize After Trump-Putin Meeting
Oil markets steadied Monday following last week’s declines, as concerns over Russian supply eased after the Trump-Putin summit. By 03:10 ET, Brent crude rose 0.1% to $65.87 per barrel, while West Texas Intermediate (WTI) futures climbed 0.2% to $62.09 per barrel. Both benchmarks had dropped nearly 1.5% on Friday, ending the week with notable losses ahead of the summit.
After meeting with Putin, Trump opted not to apply additional pressure on Russia to end the conflict through measures targeting its oil exports.
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