A trader watches arsenic U.S. President Donald Trump greets Russian President Vladimir Putin, arsenic they conscionable to negociate for an extremity to the warfare successful Ukraine, astatine Joint Base Elmendorf-Richardson successful Anchorage, Alaska, connected the level astatine the New York Stock Exchange successful New York City, U.S., August 15, 2025.
Brendan Mcdermid | Reuters
Global markets were connected tenterhooks Monday arsenic momentum to extremity the warfare successful Ukraine appeared to beryllium ramping up, with European leaders heading to Washington for much talks with U.S. President Donald Trump connected ending the warfare successful Ukraine.
European markets traded mixed up of the acme aboriginal contiguous astatine the White House, which follows Trump's high-profile gathering with Russian President Vladimir Putin successful Alaska connected Friday, portion U.S. banal futures had moved lower. Meanwhile, Asia-Pacific indices overnight traded mostly higher successful anticipation of the talks.
Traders volition beryllium hoping that an extremity to the Russia-Ukraine warfare — a struggle which began successful 2022 and which has shaken the planetary economy, disrupting commercialized and proviso chains, and creating geopolitical chasms betwixt large economies successful the West and East — could beryllium nearer present than astatine immoderate different time.
But those successful the cognize accidental fledgling talks betwixt stakeholders Russia, Ukraine, Europe and the U.S. are conscionable the opening of what could beryllium a agelong and thorny way to a ceasefire — arsenic Trump's inconclusive talks with Putin connected Friday proved — fto unsocial peace.
That would beryllium successful stark opposition to Trump's well-documented emotion of a speedy deal, and should beryllium a wake-up telephone for planetary marketplace optimism, experts say.
"Peace agreements instrumentality a very, precise agelong clip to achieve," James Bindenagel, visiting chap astatine the German Marshall Fund and erstwhile U.S. ambassador to Germany, told CNBC Monday.
"And what Putin has said is that helium wants bid talks truthful helium tin proceed the war, knowing that it won't travel to a bid statement for a precise agelong time. That is simply not acceptable," helium said.
"You cannot negociate connected a bid statement for 5 years, 10 years, and fto the Russians proceed their warfare against the Ukrainians."
Under pressure
European Commission President Ursula von der Leyen, NATO main Mark Rutte, German Chancellor Friedrich Merz, French President Emmanuel Macron and British Prime Minister Keir Starmer are among the European leaders traveling to Washington for talks connected Monday.
They're accompanying Ukraine's President Volodymyr Zelenskyy to sermon Ukraine's aboriginal and imaginable conditions for a bid deal, including onshore swaps (reportedly projected by Putin) and information guarantees — each seen arsenic important by Europe, if determination is to beryllium a ceasefire and peace. Trump has ruled retired the anticipation of Ukraine regaining power of Crimea, which Russia invaded successful 2014, and joining NATO.
Zelenskyy is apt to travel nether unit to participate a deal. In a station connected Truth Social, Trump said the Ukrainian president could "end the warfare with Russia astir immediately, if helium wants to, oregon helium tin proceed to fight."
The gathering follows Trump's acme with Russian President Vladimir Putin past Friday, but the talks concluded without a ceasefire. It's been wide reported since past that Putin told Trump that helium would hold to one, if Russia was handed Ukraine's eastbound Donbas region.
The presumption from Ukraine is not optimistic, considering that Putin had already rejected the connection of a ceasefire that could signifier the ground of bid negotiations. "To execute a large bid woody is overmuch much difficult," Oleksiy Goncharenko, a Ukrainian lawmaker, told CNBC connected Monday.
"It's a hard question with large details and it volition instrumentality a batch of time," helium told CNBC's "Europe Early Edition."
No 'quick fix'
European defence stocks were successful absorption Monday, with traders betting connected a affirmative outlook for the assemblage immoderate the result of talks arsenic European leaders person pledged to summation defence spending.
On Monday, Germany's Rheinmetall was up 2.8%, while Hensoldt and Renk were besides astir 4% higher, respectively. Italian steadfast Leonardo was up 2.1% successful aboriginal deals portion London-listed BAE Systems also traded 2.3% higher and Babcock 3.4% higher.
"This is the opening of a agelong negotiation," Olivia Allison, elder advisor astatine PRISM Strategic Intelligence, told CNBC Monday. "Anyone looking for a speedy hole volition beryllium disappointed," she noted.
"Regardless of the result ... determination volition beryllium an accent connected defense, connected protecting captious nationalist infrastructure, and I deliberation the markets should besides instrumentality that into account," she noted.
"A bid deal, which I deliberation volition beryllium a agelong process, is not an extremity to the narration betwixt Russia and Europe."
English (US) ·