North to Alaska: the meeting everyone’s been waiting for

US and EU Reach Landmark Trade Deal, Averting Tariff War

The United States and the European Union have reached a trade agreement, averting a potentially damaging tariff war. This deal marks a significant de-escalation of trade tensions between the two economic powerhouses, easing concerns about global economic growth. The agreement focuses on reducing trade barriers and increasing cooperation, potentially boosting trade flows and fostering economic growth on both sides of the Atlantic.

Key Implications for Investors:

• Reduced Uncertainty: The deal removes a major source of uncertainty that has been weighing on markets. This improved clarity could lead to increased investor confidence and potentially stimulate investment activity. Weekly Market Outlook — Data, Diplomacy, and Deadlines
• Sector-Specific Opportunities: Certain sectors, such as agriculture and manufacturing, could benefit significantly from reduced trade barriers. Investors may want to consider companies with significant exposure to transatlantic trade. Trading Is a Numbers Game—Here’s Why That’s a Good Thing
• Currency Impacts: The deal’s impact on currency markets will be closely watched. The euro could strengthen against the dollar as trade tensions ease. Dollar steadies after weakness; sterling helped by GDP data

Oil Prices Fall Following Ceasefire Agreement Between Israel and Iran

Oil prices have fallen after President Trump announced a “complete” ceasefire agreement between Israel and Iran. This news has alleviated concerns about potential disruptions to oil supplies from the Middle East, a region crucial for global energy production.

Market Reaction and Analysis:

• Risk-On Sentiment: The ceasefire has boosted risk appetite in global markets, leading to a rally in equities and a decline in safe-haven assets like gold. Futures point higher; AMD reports; Novo to cut costs – what’s moving markets
• Oil Price Outlook: While the ceasefire reduces geopolitical risks, other factors, such as global demand and OPEC+ production levels, will continue to influence oil prices. Brent oil prices to average $63.50/bbl and eventually break below $60/bbl: BofA
• Geopolitical Implications: The ceasefire is a positive development for regional stability, but the underlying tensions remain. Investors should continue to monitor the situation for potential developments. Oil prices fall as market eyes US-Russia talks on Ukraine

Trump to Meet Putin at US Military Base in Anchorage

President Trump is scheduled to meet with Russian President Vladimir Putin at a US military base in Anchorage, Alaska. This high-stakes meeting will cover a range of critical geopolitical issues, including the ongoing conflict in Ukraine.

Key Considerations for Investors:

• Geopolitical Risks: The outcome of the meeting will have significant implications for global geopolitical stability and could impact markets. Investors should be aware of the potential for increased volatility. Ukraine and Europe Project United Front Ahead of Trump-Putin Summit
• Sanctions and Trade: Discussions on sanctions and trade relations between the US and Russia could impact specific companies and sectors. Trump Sends His Envoy to Russia With Sanctions Deadline Looming
• Market Sentiment: Investor sentiment will be heavily influenced by the tone and substance of the meeting. Any signs of progress on key issues could boost market confidence. Are investors worried about the U.S. economy? Here’s what Capital Economics says.