European stock markets operate in red before negotiations on Ukraine and Wall Street awaits the summit in Jackson Hole

European stock markets operate in red before negotiations on Ukraine and Wall Street awaits the summit in Jackson Hole

August 18, 2025 – 07:45

European markets start the week without major changes, pending the definitions that the meeting in Washington can leave between Donald Trump and Volodimir Zelenski.

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The European bags began the week with few movementsreflecting the caution of investors in front of two voltage spotlights: the central bankers in Jackson Hole and the meeting between the president of the United States, Donald Trump, and his Ukrainian couple, Volodimir Zelenski.

The paneuropeo index Stoxx 600 quote with a 0.8% dropafter having added its second consecutive rise last week. In Monday’s first operations, markets remain attentive to both the evolution of the conflict in Ukraine and to the expectation of monetary policy definitions in the United States.

On the corporate level, the actions of Vestas shot 9.7%highlighting among the most bullies on the index after new regulatory guidelines of the IRS. Novo Nordisk advanced 4.1% After its Wegovy drug received an accelerated approval from the FDA to treat severe liver disease. In contrast, Commerzbank fell 3.7% After Deutsche Bank reduced his recommendation to “buy” to “keep.”

Expectation for Jackson Hole’s symposium

In Wall Street, soft falls were anticipated at the beginning of a week that will be marked by the Jackson Hole symposiumthe Annual Central Banqueros Meeting organized by the Federal Reserve of Kansas City, which will take place from the August 21 to 23. There, the president of the Fed, Jerome Powellwill talk about monetary policy in a context of high sensitivity for markets.

“While the official issue is labor markets, investors will examine any indication on the September policy, especially after mixed inflation data last week,” said Ipek Ozkardeskaya, Swissquote Bank’s senior analyst.

Markets discount with a 85% probabilityaccording to the Fedwatch of CME, which the Fed will cut the types in 25 basic points in September. For the strategist Manuel Pinto, “Powell’s biggest challenge will be to convey a clear message, since the Fed shows internal divisions about the next movement.”

With his mandate ending in May and under criticism of the Trump administration, Powell faces this appointment as an opportunity to defend the independence of the Federal Reserve and cement its legacy.

USA Federal Reserve

Powell faces this appointment as an opportunity to defend the independence of the Federal Reserve

Powell faces this appointment as an opportunity to defend the independence of the Federal Reserve

Trump and Zelenski, key meeting in Washington

The other attention front is in the Washington meeting between Trump and Zelenskiaccompanied by European leaders. The meeting comes after the summit in Alaska between Trump and Vladimir Putin, which ended without a high fire in Ukraine.

“Russia continues to demand territorial concessions, while Ukraine seeks binding security guarantees of its allies,” said Ozkardeskaya. For Pinto, Zelenski faces a dilemma: rejecting an agreement and risking Washington’s pressure, or accepting territorial concessions in exchange for still uncertain security commitments.

Link Securities analysts warned that a definitive peace, although still distant, would be “very positive for the world economy, especially for the European Union.”

Source: Ambito

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