Europe opens higher following Washington talks

US stock indices started the week quietly, with the majors hovering around the flat line on Monday. Investors largely kept their focus on Washington, where discussions between President Donald Trump and Ukrainian President Volodymyr Zelenskyy dominated headlines.

Those talks, joined by European leaders, resulted in plans for a meeting between Mr Zelenskyy and Russian President Vladimir Putin, with Trump also pledging US security guarantees. The outcome was viewed as constructive, but not market-moving, leaving equities little-changed.

Source: TN Trader

Market participants remain cautious ahead of key events later in the week, with particular attention on the Federal Reserve’s annual economic symposium in Jackson Hole. Traders are awaiting Fed Chair Jerome Powell’s remarks for any clues on how policymakers will approach the final meetings of the year.

Asian-Pacific stock indices were modestly lower overnight, reflecting both Wall Street’s quiet tone and local corporate developments. The standout move came from SoftBank Group, whose shares tumbled over 5% after announcing a $2 billion investment in US chipmaker Intel.

The purchase, priced at $23 per share, was only slightly below Intel’s $23.66 Monday close. The decline in SoftBank snapped a nine-day winning streak. It drew sharp attention, particularly as reports surfaced that the Trump administration may also take a 10% stake in Intel, making it the company’s largest shareholder. Intel jumped over 6% on the news.

After hitting a record high yesterday, Japan’s Nikkei 225 slipped 0.4% in choppy trading. Hong Kong’s Hang Seng lost 0.2% while Australia’s ASX 200 fell 0.7%. The Shanghai Composite ended flat while China’s CSI 300 climbed 0.1%, hitting its best levels since October 2024.

Currency markets were largely unchanged overnight, marking one of the quietest trading sessions in recent weeks. The major pairs all traded within established ranges, with investors unwilling to make any significant directional moves ahead of the Jackson Hole Economic Symposium later this week.

The lack of movement underscored the sense of caution across FX markets, with traders clearly hoping for some clarity over the Fed’s thinking on future rate cuts when Powell speaks on Friday. They may end up disappointed. 

Gold showed a minor upward bias overnight, while silver slipped slightly, though both remained confined within recent ranges. The lack of any breakout highlighted the restrained nature of precious metals markets, as traders avoided taking strong positions before the Federal Reserve’s policy outlook becomes clearer. 

With no significant catalysts to spark movement, gold and silver continue to fluctuate within well-established boundaries.

Source: TN Trader

Oil prices began the week on a firmer footing, with both Brent and WTI edging into positive territory on Monday. But crude oil gave back those gains overnight, and front-month WTI pulled back from the $66 region.

Source: TN Trader

The price action reinforced the view that crude remains caught in a consolidating range, with momentum swings quickly fading. While buyers managed to push prices higher in the previous session, the inability to sustain traction highlighted ongoing uncertainty in the energy space.

Natural gas prices weakened once more overnight, continuing the downward trend that has dominated recent sessions. Natural Gas also gave back gains made yesterday. This persistent decline has kept gas under pressure, reflecting the same cautious tone seen across other energy markets.

Cryptocurrencies suffered another bout of selling overnight, adding to the losses which have amassed since Thursday. The sell-off has put a large dent in risk appetite, and sentiment appears fragile currently. Bitcoin’s daily MACD suggests that momentum is still to the downside, although it is approaching neutral levels. In contrast, Ether’s daily MACD remains significantly overbought. 

The VIX continued to drift lower. It shot higher at the end of last month as President Trump’s tariff deadline approached. But it has pulled back steadily ever since. Despite geopolitical developments and upcoming central bank events, the recent downtrend in the VIX highlights the broader lack of investor concern across US equity markets. 

Traders remain reluctant to push volatility higher without a clear catalyst, leaving the index reflective of the current flat and cautious trading environment.

Markets have so far shrugged off the outcome of the Washington talks, even though the discussions were broadly described as successful. Investors appear to be holding back ahead of bigger market-moving events later in the week, with Fed Chair Powell’s remarks at Jackson Hole and a clutch of earnings from big retail companies like Walmart expected to be pivotal.

FX markets remain stuck in narrow ranges, and volatility is subdued, signalling that investors are waiting for clarity before committing to new positions. The bulls will look for fresh momentum from Home Depot’s earnings today, though the bigger test will likely come later in the week when central bankers take centre stage.