European shares log second weekly gain, focus on Trump-Putin talks
The pan-European STOXX 600 index closed 0.1% lower, after hitting a near five-month high earlier in the session.
Investor focus was on a meeting between US President Donald Trump and his Russian counterpart Vladimir Putin in Alaska later in the day that investors hope could pave the way for a resolution of the Ukraine conflict.
Trump said he would not negotiate on behalf of Ukraine and would let Kyiv decide whether to engage in territorial swaps with Russia.
Analysts at Jefferies said that any progress towards de-escalation could benefit consumer, construction, materials and growth-oriented sectors, which have been relatively underinvested in Europe. Aerospace and defence stocks fell 0.8% ahead of the summit.
Steve Sosnick, chief market analyst at Interactive Brokers, said: 'Barring something truly outrageous - positive or negative - markets are not necessarily treating it (US-Russia summit) as important from a market point of view.'
Technology stocks fell 0.6%, weighing on the STOXX 600 index.
ASML, the world's biggest supplier of computer chip-making equipment, fell 1% after US peer Applied Materials lowered its fourth-quarter earnings forecast due to weak demand in China and impacts from tariff uncertainty.
The Dutch firm had issued a similar warning in mid-July, saying it might not achieve its 2026 growth forecast. Chip stocks BE Semiconductor and ASMI dropped 3.3% and 2.8%, respectively.
On the flip side, miners were the top gainers, adding 0.8%. Antofagasta rose 1.2% after a jump in half-year core earnings on Thursday, helping peers, including Anglo American.
Healthcare shares, which have taken a beating this year from uncertainty around Trump's pharma tariffs, were on track for a recovery.
The healthcare index logged its seventh consecutive session of gains, its longest streak since late January.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
2 hours ago
- Express Tribune
A terror tag and a diplomatic turn
Just days before President Donald Trump's inauguration for the second term, a senior Pakistani diplomat briefed a group of people including experts and journalists in Islamabad. His focus was on the Pakistan-US relationship under Trump's administration. The bottom line was: Pakistan should be prepared for a tough challenge. According to the diplomat, Trump's team was surrounded by people who had little sympathy for Pakistan. Experts and those who understand Trump as well as the nature of Pakistan-US ties echoed similar sentiments. There was consensus that despite the unpredictable nature of Trump, there was little or no room for better prospects of Pakistan-US ties. On the contrary, everyone agreed that the relationship between the US and India would only deepen under President Trump's second term. But when President Trump delivered a maiden address to the US Congress, he praised Pakistan. This was some achievement given that until then he spared no one. He launched a diatribe both against friends and foes. Pakistan was the only exception, which Trump mentioned in a positive way. His praise stemmed from Pakistan's assistance in arresting one of the key masterminds of the Abbey Gate bombing in Kabul in August 2021. Muhammad Sharifullah, one of the ISIS-Khorasan operatives and according to the US was one of the facilitators of Kabul Airport attack, was apprehended on the intelligence provided by the CIA and swiftly handed over to the US. That cooperation not only earned Pakistan praise from Trump but also opened a channel of communication that would eventually lead to Field Marshal Syed Asim Munir being invited to launch at the White House in an unprecedented turn of events. When Trump applauded Pakistan at the US Congress, people were still sceptical that this bonhomie would be short-lived as Trump cannot be trusted. Questions were raised about what Pakistan had offered or was going to offer to the US in return for this cozying up approach of the US? Many people also wonder whether Pakistan would get anything in return. But what happened over the past few weeks following high-level exchanges and frequent interactions between the two countries was that Trump's praise was not mere rhetoric but now reflecting a shift in the US policy. The substantive outcome of Pakistan helping Trump to advance his domestic agenda by arresting Abbey Gate bombing facilitator was the US State Department's move to declare Balochistan Liberation Army and its suicide squad Majeed Brigade as terrorist outfit. The designation of BLA and the Majeed Brigade, as Foreign Terrorist Organisations (FTO), was a major victory for Pakistan. Islamabad had long sought its listing but with little success. The US declared Tehreek-e-Taliban Pakistan (TTP) as a terrorist outfit but successive US administrations refrained from taking a similar stance against groups active in Balochistan. One of the reasons included that such groups including BLA and Majeed Brigade were targeting not just the Pakistani interests but also primarily the Chinese interests in the resource-rich Balochistan province. This in many ways probably served the agendas of those who don't want China's Belt and Road Initiative (BRI) to succeed. That was the reason the US decision was extraordinary. The United States not only listed BLA and Majeed Brigade but also seems to be ready to extend cooperation to Pakistan to fight them. The two countries held counterterrorism dialogue, a regular feature, in Islamabad recently. The noticeable change was that for the first time BLA made it to the joint statement. Both delegations underscored the 'critical importance' of developing effective approaches to terrorist threats, singling out the BLA alongside transnational outfits. Washington lauded Islamabad's 'continued successes' in containing entities that threaten regional and global peace. Therefore, listing of BLA and Majeed Brigade is a development that carries legal, political, diplomatic, and operational implications for Pakistan, the US, and even India. First, any BLA or Majeed Brigade funds or property in the US jurisdiction are now frozen. Members and affiliates are barred from entering the US. Providing material support to the group is now a serious US federal crime, even for individuals outside the US if they have US connections. The designation makes it harder for BLA to raise funds internationally through charities, front companies, or sympathetic diaspora groups. The FTO tag makes it riskier for members to travel abroad or seek asylum in countries aligned with US counterterrorism policies. The US can now more actively share intelligence with Pakistan and allies to track, disrupt, or eliminate the group's cells. Diaspora-based sympathisers in the West could face monitoring and prosecution. If BLA finds safe havens in neighbouring states including Afghanistan, the US listing pressures those governments to take action or face reputational costs. While the designation won't end the insurgency, it can weaken its external support structure, especially for high-profile suicide attacks like those by the Majeed Brigade. Second, Pakistan has long stated that BLA is a foreign-backed terrorist group responsible for attacks in Balochistan. The US designation is an international endorsement of that position. Third, India has openly supported Baloch separatists. The US move signals that Washington is not aligning with New Delhi on this issue. Fourth, this listing highlights a warming security relationship between Pakistan and the US. Fifth, quietly, this could create discomfort in New Delhi if US counterterrorism measures start exposing any Indian contacts with Baloch separatists. It is not said publicly but the US move could also be linked to its keen interest in the untapped mines and minerals resources available in abundance in Balochistan. But security is a major challenge. Some view the US interest in mines and minerals with suspicion. The view, nevertheless, in official Pakistani circles is that the US investment in Balochistan could stabilise the situation and it may lay the bases for long-term cooperation between the two countries. The listing of BLA and Majeed Brigade is being seen in that context.
Express Tribune
2 hours ago
- Express Tribune
US cancels India trade talks scheduled for August
Shipping containers are seen on a ship at the Jawaharlal Nehru Port in Navi Mumbai, India, August 11, 2025. Photo: Reuters A planned visit by US trade negotiators to New Delhi from August 25-29 has been canceled, delaying talks on a proposed bilateral trade agreement, Indian business and financial news network NDTV Profit reported on Saturday, citing people familiar with the matter. The current round of negotiations for the proposed bilateral trade agreement is now likely to be deferred to another date, the report said, dashing hopes of some relief before the Aug. 27 deadline for the additional tariff on Indian goods kicks in. Reuters could not immediately verify the report. Earlier this month, US President Donald Trump imposed an additional 25% tariff on Indian goods, citing New Delhi's continued imports of Russian oil in a move that sharply escalated tensions between the two nations. Read: US lifts Indian import tariff to 50% with new 25% hike The new import tax, which will come into effect from Aug 27, will raise duties on some Indian exports to as high as 50% - among the highest levied on any US trading partner. Trade talks between New Delhi and Washington collapsed after five rounds of negotiations over disagreement on opening India's vast farm and dairy sectors and stopping Russian oil purchases. India's Foreign Ministry has said the country is being unfairly singled out for buying Russian oil while the United States and European Union continue to purchase goods from Russia. Russia accounted for nearly 36 percent of India's total crude oil imports in 2024, snapping up approximately 1.8 million barrels of cut-price Russian crude per day. Buying Russian oil saved India billions of dollars on import costs, keeping domestic fuel prices relatively stable.
Business Recorder
5 hours ago
- Business Recorder
Outline emerges of Putin's offer to end his war in Ukraine
LONDON: Russia would relinquish tiny pockets of occupied Ukraine and Kyiv would cede swathes of its eastern land which Moscow has been unable to capture, under peace proposals discussed by Russia's Vladimir Putin and Donald Trump at their Alaska summit, sources briefed on Moscow's thinking said. The account emerged the day after Trump and Putin met at an airforce base in Alaska, the first encounter between a US president and the Kremlin chief since before the start of the Ukraine conflict. Ukrainian President Volodymyr Zelenskiyy is due to travel to Washington on Monday to discuss with Trump a possible settlement of the full-scale war, which Putin launched in February 2022. Although the summit failed to secure the ceasefire he said he had wanted, Trump said in an interview with Fox News' Sean Hannity that he and Putin had discussed land transfers and security guarantees for Ukraine, and had 'largely agreed'. 'I think we're pretty close to a deal,' he said, adding: 'Ukraine has to agree to it. Maybe they'll say 'no'.' The two sources, who requested anonymity to discuss sensitive matters, said their knowledge of Putin's proposals was mostly based on discussions between leaders in Europe, the U.S. and Ukraine, and noted it was not complete. Trump briefed Zelenskiyy and European leaders on his summit discussions early on Saturday. It was not immediately clear if the proposals by Putin were an opening gambit to serve as a starting point for negotiations or more like a final offer that was not subject to discussion. Ukrainian land for peace At face value, at least some of the demands would present huge challenges for Ukraine's leadership to accept. Putin's offer ruled out a ceasefire until a comprehensive deal is reached, blocking a key demand of Zelenskiyy, whose country is hit daily by Russian drones and ballistic missiles. Under the proposed Russian deal, Kyiv would fully withdraw from the eastern Donetsk and Luhansk regions in return for a Russian pledge to freeze the front lines in the southern regions of Kherson and Zaporizhzhia, the sources said. Ukraine has already rejected any retreat from Ukrainian land such as the Donetsk region, where its troops are dug in and which Kyiv says serves as a crucial defensive structure to prevent Russian attacks deeper into its territory. Russia would be prepared to return comparatively small tracts of Ukrainian land it has occupied in the northern Sumy and northeastern Kharkiv regions, the sources said. Russia holds pockets of the Sumy and Kharkiv regions that total around 440 square km, according to Ukraine's Deep State battlefield mapping project. Ukraine controls around 6,600 square km of Donbas, which comprises the Donetsk and Luhansk regions and is claimed by Russia. Although the Americans have not spelled this out, the sources said they knew Russia's leader was also seeking - at the very least - formal recognition of Russian sovereignty over Crimea, which Moscow seized from Ukraine in 2014. It was not clear if that meant recognition by the US government or, for instance, all Western powers and Ukraine. Kyiv and its European allies reject formal recognition of Moscow's rule in the peninsula. They said Putin would also expect the lifting of at least some of the array of sanctions on Russia. However, they could not say if this applied to U.S. as well as European sanctions. Trump said on Friday he did not immediately need to consider retaliatory tariffs on countries such as China for buying Russian oil - which is subject to a range of Western sanctions - but might have to 'in two or three weeks.' Trump's summit with Putin set for 11 a.m. in Alaska on Friday Ukraine would also be barred from joining the NATO military alliance, though Putin seemed to be open to Ukraine receiving some kind of security guarantees, the sources said. However, they added that it was unclear what this meant in practice. European leaders said Trump had discussed security guarantees for Ukraine during their conversation on Saturday and also broached an idea for an 'Article 5'-style guarantee outside the NATO military alliance. NATO regards any attack launched on one of its 32 members as an attack on all under its Article 5 clause. Joining the Atlantic alliance is a strategic objective for Kyiv that is enshrined in the country's constitution. Russia would also demand official status for the Russian language inside parts of, or across, Ukraine, as well as the right of the Russian Orthodox Church to operate freely, the sources said. Trump gives Putin 'peace letter' from wife Melania Ukraine's security agency accuses the Moscow-linked church of abetting Russia's war on Ukraine by spreading pro-Russian propaganda and housing spies, something denied by the church which says it has cut canonical ties with Moscow. Ukraine has passed a law banning Russia-linked religious organisations, of which it considers the church to be one. However, it has not yet started enforcing the ban.
