Markets Today: Russia-Ukraine Talks, Nikkei Retreats, FTSE 100 Eyes Gains. Canadian Inflation Ahead

[Redator]

Asia Market Wrap - Markets Steady as Nikkei Retreats

Asian stocks were mostly unchanged as traders considered positive signs of progress toward ending the Russia-Ukraine conflict.

Japan's Nikkei index rose at first but then fell 0.1%, weighed down by a 2.5% drop in SoftBank Group after it revealed a $2 billion investment in struggling U.S. chipmaker Intel.

Meanwhile, MSCI's index of Asia-Pacific shares outside Japan slipped 0.1%, following small losses in U.S. stocks the day before.

Trump Meets Zelensky and Other European Leaders

On Monday, U.S. President Donald Trump assured Ukrainian President Volodymyr Zelenskiy that the U.S. would help guarantee Ukraine's security in any deal to end the war with Russia, though the details of this support were unclear.

Trump made this promise during a major summit at the White House, where he met with Zelenskiy and European allies after his Friday meeting in Alaska with Russian President Vladimir Putin. Zelenskiy called the promise "a big step forward" and said the guarantees would be finalized within a week or so. He also mentioned Ukraine’s plan to buy $90 billion worth of U.S. weapons.

The meeting had a much friendlier tone compared to a tense Oval Office meeting in February, where Trump and Vice President JD Vance criticized Zelenskiy. However, a peace deal still seems far off.

Before the talks began, Russia’s Foreign Ministry rejected the idea of NATO troops being involved in securing a peace deal, complicating Trump’s offer. Both Trump and Zelenskiy expressed hope that the meeting would lead to direct talks with Putin, whose forces continue to advance in eastern Ukraine.

Later on Monday, Trump said he had called Putin to arrange a meeting between him and Zelenskiy, followed by a three-way summit with all three leaders. According to a European source, Putin suggested this sequence. While the Kremlin hasn’t confirmed the plan, a U.S. official said the Putin-Zelenskiy meeting might happen in Hungary within two weeks, as mentioned by German Chancellor Friedrich Merz.

The last direct talks between Russia and Ukraine were in Turkey in June, but Putin declined Zelenskiy’s invitation to meet in person and sent a lower-level delegation instead.

Zelenskiy has mostly dismissed Putin's proposals from the Alaska meeting. These included giving up the remaining quarter of Ukraine's eastern Donetsk region, which is mostly under Russian control.

Any decision to give up Ukrainian land would need to be approved through a public vote.

The war has caused over a million casualties on both sides, including thousands of mostly Ukrainian civilians, and has devastated large parts of the country.

Source: LSEG

European Open - FTSE Eyes Gains, Defense Stocks Slip

European stocks opened slightly higher, with the STOXX 600 index rising 0.1%, along with Britain's FTSE 100. France's CAC 40 gained 0.2%, and Germany's DAX increased by 0.1%.

However, European defense stocks fell by 1.3%, with Swedish military contractor Saab dropping 3.7%.

UK Stocks- Factors to Watch

Assura: Ed Smith has stepped down as chairman after seven years. Jonathan Davies, a senior board member, will take over.

UK Motor Finance: A court ruling in the UK could save car finance companies billions in payouts and may lead to more mergers in the industry.

IWG: IWG announced a new $130 million share buyback plan for the year and confirmed its annual forecast after reporting a 6% profit increase in the first half due to strong revenue.

Rio Tinto: A U.S. court has temporarily stopped a land transfer needed for Rio Tinto and BHP to develop a copper project in Arizona.

Shell: Brazil’s Petrobras said it has no plans to invest in ethanol production or distribution with Raizen, a joint venture involving Shell.

Shein IPO: Shein is considering moving its headquarters back to China to get approval for a Hong Kong IPO, after previous attempts to list in New York and London.

On the FX front, the dollar dropped 0.2% to 147.64 yen. The euro increased by 0.1% to $1.1670, while the dollar index, which measures the dollar against other major currencies, stayed mostly unchanged after rising 0.2% the day before.

Currency Power Balance

Source: OANDA Labs

Oil prices fell on Tuesday, gold stayed stable, and copper prices barely moved as traders remained cautious due to mixed market signals creating uncertainty.

For more on Oil, please read WTI Crude Technical: Bearish tone intact as Trump-Zelenskiy meeting looms

Economic Data Releases and Final Thoughts

Looking at the economic calendar, a quiet day for Europe and the US.

The major event of the day comes from Canada where we will get Canadian CPI data which could stoke some volatility on Canadian Dollar pairs.

For more on Canadian inflation, read USD/CAD Eyes Gains Above 100-day MA. Geopolitics, Fed Outlook May Prove to be Stumbling Blocks.

For all market-moving economic releases and events, see the MarketPulse Economic Calendar. (click to enlarge)

Chart of the Day - FTSE 100 Index

From a technical standpoint, the FTSE 100 finally breached the 9200 handle on Friday before a drop of around 100 points.

Yesterday saw the index recover with price action showing a change in structure as the FTSE printed a higher high.

There is significant support on the two-hour chart, provided by the 100 and 200-day SMA which rests around the 9145 mark.

If this level holds, a retest of Fridays all-time highs may come to fruition.

A break below the SMAs and a candle close below the swing low at 9127 could open up a move lower and potential retest of the 9048 handle once more.

The period-14 RSI has also bounced off the 50 level this morning hinting at bullish momentum.

FTSE Daily Chart, August 19. 2025

Source: TradingView.com (click to enlarge)

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