Stock markets cautious with eyes on Ukraine talks, US rates
Markets were also waiting for a key speech by the US Federal Reserve chief this week for clues on interest rate cuts that could bolster the world's biggest economy.
Hopes for a Ukraine breakthrough rose after US President Donald Trump said he spoke by phone with Russian counterpart Vladimir Putin, following a meeting with Ukrainian President Volodymyr Zelensky and European leaders at the White House.
Zelensky said he was ready for what would be his first faceto-face talks with Putin since Russia's invasion nearly three and a half years ago.
Wall Street opened mixed, as the broad-based S&P 500 and the tech-heavy Nasdaq indexes retreated while the Dow rose.
London, Paris and Frankfurt stocks all closed higher following a lacklustre session for Asian stock markets.
Defence stocks fell sharply as chances grew for a breakthrough in Ukraine peace talks, with Germany's Rheinmetall dropping 4.7 percent and France's Thales down 4.1 percent.
Investors were also eagerly awaiting a speech on Friday by US Federal Reserve chief Jerome Powell at the annual retreat of global central bankers in Jackson Hole, Wyoming.
Traders hope Powell will provide more clues about a widely expected interest-rate cut at the Fed's September meeting, after data last week provided a mixed picture about inflation.
'Markets seem to be exercising some caution ahead of the Jackson Hole meeting later this week and as talks over a peace agreement between Russia and Ukraine remain inconclusive,' said AJ Bell head of financial analysis Danni Hewson.
Oil prices, which have been volatile for several days -- Russia is a major crude producer -- retreated by around one% after gains on Monday.
'Oil prices have dropped a little as a deal edges closer, given that it's likely to lead to an easing of sanctions on Russia energy imports, increasing supplies on global markets,' said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
Japan's Nikkei briefly hit a record before retreating to close down 0.4%.
Shanghai ended flat while Hong Kong, Sydney and Seoul fell, and Singapore, Bangkok and Mumbai edged up.
Among individual companies, Intel shares advanced 6.9 percent in New York after Japan-based tech investment giant SoftBank said it would invest $2 billion in the troubled US chip giant.
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Daily Tribune
10 hours ago
- Daily Tribune
Stock markets cautious with eyes on Ukraine talks, US rates
European stock markets rose while Wall Street diverged yesterday as investors warily eyed signs of progress in talks to end Russia's war in Ukraine. Markets were also waiting for a key speech by the US Federal Reserve chief this week for clues on interest rate cuts that could bolster the world's biggest economy. Hopes for a Ukraine breakthrough rose after US President Donald Trump said he spoke by phone with Russian counterpart Vladimir Putin, following a meeting with Ukrainian President Volodymyr Zelensky and European leaders at the White House. Zelensky said he was ready for what would be his first faceto-face talks with Putin since Russia's invasion nearly three and a half years ago. Wall Street opened mixed, as the broad-based S&P 500 and the tech-heavy Nasdaq indexes retreated while the Dow rose. London, Paris and Frankfurt stocks all closed higher following a lacklustre session for Asian stock markets. Defence stocks fell sharply as chances grew for a breakthrough in Ukraine peace talks, with Germany's Rheinmetall dropping 4.7 percent and France's Thales down 4.1 percent. Investors were also eagerly awaiting a speech on Friday by US Federal Reserve chief Jerome Powell at the annual retreat of global central bankers in Jackson Hole, Wyoming. Traders hope Powell will provide more clues about a widely expected interest-rate cut at the Fed's September meeting, after data last week provided a mixed picture about inflation. 'Markets seem to be exercising some caution ahead of the Jackson Hole meeting later this week and as talks over a peace agreement between Russia and Ukraine remain inconclusive,' said AJ Bell head of financial analysis Danni Hewson. Oil prices, which have been volatile for several days -- Russia is a major crude producer -- retreated by around one% after gains on Monday. 'Oil prices have dropped a little as a deal edges closer, given that it's likely to lead to an easing of sanctions on Russia energy imports, increasing supplies on global markets,' said Susannah Streeter, head of money and markets at Hargreaves Lansdown. Japan's Nikkei briefly hit a record before retreating to close down 0.4%. Shanghai ended flat while Hong Kong, Sydney and Seoul fell, and Singapore, Bangkok and Mumbai edged up. Among individual companies, Intel shares advanced 6.9 percent in New York after Japan-based tech investment giant SoftBank said it would invest $2 billion in the troubled US chip giant.
Daily Tribune
2 days ago
- Daily Tribune
China's top diplomat Wang arrives in India
China's top diplomat landed in neighbouring India yesterday, seeking to bolster long-fraught relations in the face of intense pressure and tariffs from the United States. Foreign Minister Wang Yi held talks with his counterpart Subrahmanyam Jaishankar, and is also expected to meet Prime Minister Narendra Modi during his three-day visit to New Delhi. Modi, according to Indian media, might also visit China this month. India's foreign ministry said in a social media post that 'important engagements of the India- China Special Representatives and on bilateral relations' were scheduled over the next two days. Restarting border trade across their icy and high-altitude Himalayan border is expected to feature high on Wang's agenda. Its resumption would be significant for its symbolism, and follows agreements to return direct flights and issue tourist visas. India is also part of the Quad security alliance with the United States, Australia and Japan, which is seen as a counter to China. Modi calls 'friend' Putin Modi said Monday he spoke to 'my friend' Vladimir Putin, with the Russian president 'sharing insights' on his Alaska summit with Trump last week. 'India has consistently called for a peaceful resolution of the Ukraine conflict and supports all efforts in this regard,' the Indian premier wrote on social media. Indian hopes that the Alaska meeting would ease US tariff pressure were tempered earlier Monday by US trade adviser Peter Navarro. 'If India wants to be treated as a strategic partner of the US, it needs to start acting like one,' he wrote in a sharply-worded column in the Financial Times. 'India acts as a global clearinghouse for Russian oil, converting embargoed crude into high-value exports while giving Moscow the dollars it needs,' he wrote. 'The proceeds flow to India's politically connected energy titans, and in turn, into Vladimir Putin's war chest,' he added, in an apparent swipe at India's big refiners, which include tycoon Mukesh Ambani. Navarro said the 50% tariff -- due to begin on August 27 -- will 'hit India where it hurts'.
Gulf Insider
3 days ago
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German Air Traffic Remains Far Below Pre-COVID Levels
Air traffic in Germany remains far below 2019 levels. Expensive regulations and the country's economic situation are preventing a recovery. Airlines are voicing their criticism of government policies. Passenger numbers at German airports confirm the overall crisis in the economy. With 99.4 million passengers in the first half of 2025, air traffic rose by 2.8% compared to last year but still remains 15.8% below pre-Corona levels. The decline is particularly dramatic at the capital airport, BER. Compared with the combined passenger numbers of the former Tegel and Schönefeld airports in 2019, BER today handles roughly 30% fewer passengers. This is a stark indicator of the industry's troubles, which aligns with trends in other sectors of the German economy. Both construction and key industrial sectors are operating 12 to 15% below 2019 levels. This has consequences for the labor market. In aviation, about 24% of jobs—or 60,000 of 255,000 positions—have been cut since 2019. Nationwide, job losses now total roughly 700,000. The German economy is visibly running at low throttle. With a capacity utilization of 77.7% in Q2, well below the 83.4% average, the numbers indicate weak domestic demand as well as a cooling export sector. U.S. trade policies are likely to add further pressure. The German economy is in serious turbulence, and the country's overall competitiveness has declined. Airlines and airport operators have long complained about Germany's excessive costs and regulatory burden. The already strict rules of the EU Commission are compounded locally by additional taxes, levies, and bureaucratic hurdles. This combination weighs on carriers and hampers any meaningful recovery of German air traffic. The sharpest criticism in recent days came from Irish carrier Ryanair, which announced that due to high operating costs in Germany, it would completely cease flights at Dortmund, Leipzig, and Dresden, and reduce operations in Hamburg by 60% and at BER by 20%. Ryanair CMO Dara Brady summed up the situation bluntly: he sharply criticized the federal government for repeatedly failing to lower or at least reduce the high air travel tax, thereby blocking the market's necessary recovery. Brady warned of far-reaching consequences for tourism, jobs, and Germany's connectivity to international hubs. He announced that, if the air travel tax were abolished, Ryanair would invest $3 billion in Germany and create 1,000 new jobs. Passenger numbers could rise to 34 million annually. If high costs and access barriers remain, growth would have to shift to other European markets such as Sweden, Hungary, and Italy. Ryanair's message is clear: without tangible relief, more firms will pack up—impacting Germany's economic standing and jobs in the sector. Since 2019, the number of civil aircraft stationed in Germany has dropped from 190 to 130, resulting in the loss of roughly 10,000 jobs and an annual economic output loss of over €4 billion. For now, policymakers remain quiet. Only Christoph Ploß (CDU), federal tourism coordinator, responded vaguely, announcing plans to reduce the air travel tax. Yet the 2026 federal budget contains no concrete relief measures. The sector remains politically unsupported and out in the rain. Regulations hit domestic flights hardest—reflecting an ideological stance against individual mobility and aviation. Up to 35% of ticket prices now go to government charges. These include the air travel tax, which rose 25% in 2024 and accounts for roughly 10–12% of total ticket cost, plus CO₂ levies, airport usage, and flight safety fees adding another 10–15%. Airport and air traffic control fees account for 8–10%. In a European comparison, German fees are well above those at competing locations. In Poland and Italy, for example, fiscal levies on tickets range from 10–15%. This difference is crucial in a highly competitive market. As long as the EU Commission does not implement unified regulations, location competition will persist. The looming flight of carriers to neighboring countries increases pressure on the finance minister to ease taxes. Given the tight fiscal situation, whether this is feasible remains questionable.
