Key Points
- European stocks rose on Friday as investors watched a key meeting between Trump and Putin.
- The two leaders are meeting in Alaska to discuss a potential ceasefire in Ukraine.
- Investors are also looking ahead to U.S. retail sales data for clues about the economy.
- Bets on a large, half-point Fed rate cut have faded after recent inflation data.
European stock markets climbed on Friday as investors kept a close watch on a high-stakes meeting between U.S. President Donald Trump and Russian President Vladimir Putin. The two leaders are set to meet in Alaska to discuss a potential ceasefire in the war in Ukraine.
The major European indexes in Germany, France, and the UK all posted gains. The war, which has been going on for over three years, has caused major disruptions to the global supply chain, pushing up commodity prices and creating economic headaches worldwide.
At 4:13 AM ET, the DAX index in Germany climbed 0.54% to 24,510.33, the CAC 40 in France gained 0.58% to 7,915.66, and the FTSE 100 in the UK rose 0.075% to 9,184.12. Additionally, the pan-European STOXX 600 index gained 0.38% to 555.95, trading near a two-week intraday high, boosted by generally strong corporate earnings.
A potential ceasefire would be a major development. However, analysts at ING warned that markets might react with caution to any initial announcement, as any deal would still need to be worked out with European allies and Ukraine.
No major economic data was coming out of Europe on Friday, so investors were also looking ahead to the release of U.S. retail sales figures later in the day. Recent data showing a surprise jump in U.S. producer prices has made some investors rethink how much the Federal Reserve might cut interest rates this year. While a September rate cut is still widely expected, hopes for a larger, half-point cut have faded.
In corporate news, Danish jewelry company Pandora warned that U.S. tariffs could significantly hurt its earnings.
Oil prices edged lower as traders waited for the outcome of the Trump-Putin summit. A ceasefire in Ukraine could have a big impact on the global oil supply, so the market is in a holding pattern.
