Caution on Ukraine, eyes on Jackson Hole | Money News

By Mike Dolan

LONDON (Reuters) – What issues in U.S. and international markets at the moment

By Mike Dolan, Editor-At-Large, Finance and Markets

Subdued world markets eyed proposals for a Ukraine-Russia summit with warning, whereas updates on the shaky U.S. housing market on Tuesday and this week’s Federal Reserve convention in Jackson Hole dominated considering.

European stock benchmarks nudged larger and the defence sector slipped after U.S. President Donald Trump informed his Ukrainian counterpart Volodymyr Zelenskiy that Washington would help guarantee Ukraine’s security in any peace deal to finish Russia’s warfare. Germany mentioned Zelenskiy and Russian President Vladimir Putin would meet within the subsequent two weeks. In response, the euro firmed towards the greenback, crude oil ticked decrease and gold edged up.

* U.S. Treasuries have been on the backfoot for the reason that alarming U.S. producer price report final week, with 30-year bond yields holding simply shy of 4.95% on Tuesday and the two-to-30 12 months yield curve hole firming above 117 foundation factors for the primary time since January 2022. With July housing begins on the diary later, together with a retail replace from Home Depot, Fed futures presently price simply over an 80% likelihood of a quarter level price cut subsequent month. Fed Chair Jerome Powell offers his keynote Jackson Hole speech on Friday.

* S&P Global on Monday affirmed its ‘AA+’ U.S. sovereign credit ranking and assigned it a secure outlook, saying the income from Trump’s tariffs will offset the deficit hit from his latest fiscal invoice and the finances hole would average 6% of GDP during the 2025-2028 period – down from 7.5% in 2024. Wall Street stock futures have been flat forward of Tuesday’s bell after ending little modified yesterday, with Chinese and Japanese shares within the crimson earlier.

* Palo Alto Networks forecast income and revenue above estimates on Monday, betting on growing demand for its artificial intelligence-powered cybersecurity options – sending its shares up 5% in prolonged trading. In different tech information, Intel is getting a $2 billion capital injection from SoftBank Group in a vote of confidence for the troubled U.S. chipmaker and Nvidia is developing a new AI chip for China based mostly on its newest Blackwell structure that might be more highly effective than the H20 model it’s presently allowed to sell there.

Today’s Market Minute

* Intel (INTC.O), is getting a $2 billion capital injection from SoftBank Group, in a main vote of confidence for the troubled U.S. chipmaker that’s within the center of a turnaround effort.

* Nvidia (NVDA.O), is developing a new AI chip for China based mostly on its newest Blackwell structure that might be more highly effective than the H20 model it’s presently allowed to sell there, two people briefed on the matter mentioned.