Asia shares dip before Fed gathering; European futures up on Ukraine summit hopes

Asian stocks and oil prices slipped on Tuesday ahead of a major central bankers’ meeting, as investors weighed positive signals from peace efforts between Russia and Ukraine.

European equity futures ticked higher after Ukrainian President Volodymyr Zelenskyy said that security guarantees for Kyiv could be finalised within 10 days following talks with U.S. President Donald Trump and European partners.

Japan’s Nikkei index briefly set a new intraday record before retreating. The U.S. dollar held gains from Monday as traders awaited guidance from the Federal Reserve before its Jackson Hole symposium later this week.

Kyle Rodda of Capital.com noted that markets remain cautious, with expectations of a dovish shift from the Fed. Equity strength and further dollar weakness, he said, depend on the central bank meeting these expectations.

MSCI’s broadest Asia-Pacific index outside Japan dipped 0.2% after U.S. stocks ended slightly lower. In Europe, Euro Stoxx 50 futures rose 0.3%, German DAX futures gained 0.2%, and UK FTSE futures added 0.3%.

NATO Secretary-General Mark Rutte told Fox News that the Trump–Zelenskyy meeting with European and NATO partners had been “very successful.” The talks followed last week’s Alaska summit between Trump and Russian President Vladimir Putin, which failed to secure a ceasefire. Trump later said he had called Putin and was preparing a direct meeting between him and Zelenskyy, followed by a trilateral summit.

Markets are also focused on the Jackson Hole symposium running from 21-23 August, where Fed Chair Jerome Powell will outline the economic outlook. Futures data show an 83.6% chance of a quarter-point cut at the September 17 Fed meeting, according to CME FedWatch.

Japan’s Nikkei fell 0.5%, weighed down by a 5% drop in SoftBank after it announced a $2 billion investment in struggling U.S. chipmaker Intel.

On currencies, the dollar stood at 147.78 yen, the euro was steady at $1.1658, and the dollar index edged up to 98.171 after Monday’s 0.2% rise.

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