Global investors are eyeing defence and energy sectors as European leaders rally behind Ukraine amid signs the U.S. may push Kyiv to accept a peace deal favourable to Russia.
Markets are facing a turbulent week as geopolitical risk rises over Ukraine, with President Volodymyr Zelenskyy set to meet U.S. President Donald Trump in Washington on Monday. European leaders, including those from Germany, France and the UK, will also attend, seeking to strengthen Ukraine’s hand in the talks.
Trump, fresh from a summit with Russian President Vladimir Putin in Alaska, said on Saturday that he wanted a “rapid” peace deal — comments that analysts see as increasing pressure on Kyiv to concede territory in exchange for an end to the war.
“Trump seems inclined to reduce or even end U.S. support for Ukraine. Putin got him interested in business deals,” said Berenberg Chief Economist Holger Schmieding in a client note. “The U.S. may lift its sanctions on Russia and invest in Russia instead. Europe will have to spend a lot more for its own defence.”
The geopolitical shift is fuelling speculation about new U.S.-Russia cooperation on Arctic oil and gas projects. Bank of America strategist Michael Hartnett flagged the potential exploitation of 15 % of the world’s undiscovered oil and 30 % of undiscovered natural gas in the region, warning of a possible deep bear market for energy.
Brent crude, which dropped more than 1 % on Friday to trade near $66 a barrel, is still “priced for a Ukraine peace deal,” Hartnett said.
European defence stocks have surged since Russia’s full-scale invasion in February 2022, with shares in Italy’s Leonardo up more than 600 % and Germany’s Rheinmetall gaining 1,500 % over the period.
The euro has also strengthened, up 13 % against the dollar this year, trading around $1.17 on Friday.
Ukraine’s sovereign bonds — a key sentiment barometer — rallied earlier this month as news of the Trump–Putin summit broke but have since stalled at around 55 cents on the dollar. “I would think they will be a bit weaker… the mood seems to favour Russia following Friday’s summit,” said Jeff Grills, head of emerging market debt at Aegon Asset Management.
European leaders are expected to press for strong security guarantees and a clear role for Ukraine in any final settlement during the upcoming talks at The White House.
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Trump said the U.S. and Iran were making progress in peace talks, though direct negotiations remain premature. Meanwhile, Israel, reportedly, struck senior Hezbollah and Hamas figures and tensions over Hormuz and Tehran’s nuclear programme continue.
A federal judge in New York released a handwritten document described as a suicide note purportedly written by late financier and convicted sex offender Jeffrey Epstein, nearly seven years after his death in a Manhattan jail cell. The document was released late Wednesday (6 May).
Russia has restricted some mobile internet services ahead of Victory Day on Saturday (9 May), citing security concerns. The annual celebrations, marking victory over Nazi Germany in the Second World War, have been scaled back amid fears of attacks from Ukraine.
Ted Turner, the CNN founder who pioneered the 24-hour news cycle, has died aged 87, the network reported on Wednesday (6 May), citing a Turner Enterprises press release. He died surrounded by family.
U.S. President Donald Trump said that Iran wanted to negotiate and make a deal in comments to reporters on Wednesday (6 May). But earlier, he warned Washington would ramp up attacks if no agreement was reached.
Argentinian authorities are reconstructing the journeys of Dutch citizens who presented with symptoms of deadly hantavirus after visiting Argentina and Chile as part of a luxury cruise trip, the country's Health Ministry said in a statement on Wednesday (6 May)
The United Arab Emirate said it was dealing with missile and drone attacks from Iran for the second day in a row on Tuesday (5 May), despite denials from authorities in Tehran who threatened a "crushing response" if the UAE retaliated.
The steps of the Metropolitan Museum of Art were transformed once again into the world's most prestigious runway for the 2026 Met Gala. This year’s theme, 'Costume Art,' invited guests to explore the intersection of nature, history, and the surreal under the official dress code 'Fashion Is Art'.
The 61st Venice Biennale has opened under grey skies and political tension, with disputes over Russia and Israel, resignations on the jury, and protests marking the start of one of the art world’s most high-profile events.
A federal judge in New York released a handwritten document described as a suicide note purportedly written by late financier and convicted sex offender Jeffrey Epstein, nearly seven years after his death in a Manhattan jail cell. The document was released late Wednesday (6 May).
Russia has restricted some mobile internet services ahead of Victory Day on Saturday (9 May), citing security concerns. The annual celebrations, marking victory over Nazi Germany in the Second World War, have been scaled back amid fears of attacks from Ukraine.
Ted Turner, the CNN founder who pioneered the 24-hour news cycle, has died aged 87, the network reported on Wednesday (6 May), citing a Turner Enterprises press release. He died surrounded by family.
The Secretary-General of the Iranian Red Crescent Society (IRCS), Meysam Afshar, said the organisation has documented alleged violations of international humanitarian law during the U.S.–Israel war on Iran and shared the findings with international bodies.
Chinese Foreign Minister Wang Yi met his Iranian counterpart Abbas Araghchi in Beijing on Wednesday, their first in-person talks since the U.S.-Israel war on Iran began, focusing on the fragile ceasefire and security in the Strait of Hormuz.
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