Trump-Putin Summit: A Tenuous Path Towards Ukraine Peace

As the much-anticipated summit between Donald Trump and Vladimir Putin approaches, the investment world remains cautious amid limited expectations of progress in resolving the Ukraine conflict.

Ukraine's government bonds initially showed a rally when the meeting was announced, signaling investor optimism. However, they have since stalled, reflecting widespread skepticism about any substantial breakthrough. Trump's promise of perhaps another summit with Ukraine's President Volodymyr Zelenskiy adds a layer of uncertainty.

European leaders have appreciated Trump's indication toward security guarantees, while Putin praised his efforts. Experts in emerging markets warn that entrenched positions may hinder a meaningful truce, potentially affecting key markets such as oil and gas, despite the current 'peace dividend' hopes from reduced tariffs.

(With inputs from agencies.)