US President Donald Trump’s heated meeting with Ukrainian President Volodymyr Zelenskiy has sent shockwaves through financial markets, adding to existing uncertainty due to weakening economic data and volatility around US trade policies. The verbal spat between the two leaders raised concerns over a potential peace deal with Russia.
The market reaction was swift, with benchmark 10-year Treasury yields declining as investors sought safe-haven assets. European stock futures fell, while Wall Street climbed in choppy trading. The euro also plummeted to a two-week low of $1.0366.
Investors are concerned about the unpredictable nature of the Trump administration and its impact on economic growth. A report showing slowed consumer spending last month added to their fears, which were already fueled by recent signs of weak consumer confidence and sluggish manufacturing.
Despite the volatility, some investors remain hopeful that cooler heads will prevail, welcoming any constructive steps towards a deal with Russia. However, the meeting highlighted Kyiv’s struggle to retain US backing in the conflict with Russia. The outcome of Trump’s proposed tariffs on key trade partners remains uncertain, further exacerbating market uncertainty.
Source: https://www.reuters.com/markets/investors-unnerved-by-heated-trump-zelensky-oval-office-showdown-2025-02-28