Shares nudge higher in Asia, oil slips on Russian truce talks
freemalaysiatoday.com -- Sunday, August 17, 2025, 9:57:56 PM Eastern Daylight Time
Categories: U.S.–Russia Relations, Economic Policy & Jobs
SYDNEY: Share markets edged higher in Asia on Monday ahead of what is likely to be an eventful week for US interest rate policy, while oil prices slipped as risks to Russian supplies seemed to fade a little.
US President Donald Trump now seemed more aligned with Moscow on seeking a peace deal with Ukraine instead of a ceasefire first, after meeting Russian President Vladimir Putin in Alaska on Friday.
Trump will meet Ukrainian President Volodymyr Zelensky and European leaders later on Monday to discuss the next steps, though actual proposals are vague as yet.
The major economic event of the week will be the Kansas City Federal Reserve's Aug 21-23 Jackson Hole symposium, where chair Jerome Powell is due to speak on the economic outlook and the central bank's policy framework.
"Chair Powell will likely signal that risks to the employment and inflation mandates are coming into balance, setting up the Fed to resume returning policy rate to neutral," said Andrew Hollenhorst, chief economist at Citi Research.
"But Powell will stop short of explicitly signalling a September rate cut, awaiting the August jobs and inflation reports," he added. "This would be fairly neutral for markets already fully pricing a September cut."
Markets imply around an 85% chance of a quarter-point rate cut at the Fed's meeting on Sept 17, and are priced for a further easing by December.
The prospect of lower borrowing costs globally have underpinned stock markets and Japan's Nikkei firmed 0.5% to a fresh record high.
MSCI's broadest index of Asia-Pacific shares outside Japan was a fraction lower, having hit a four-year top last week.
EUROSTOXX 50 futures rose 0.3%, while FTSE futures and DAX futures gained 0.2%.
Solid earnings
S&P 500 futures nudged up 0.1%, while Nasdaq futures added 0.2% with both near all-time highs.
Valuations have been underpinned by a solid earnings season as S&P 500 EPS grew 11% on the year and 58% of companies raised their full-year guidance.
"Earnings results have continued to be exceptional for the mega-cap tech companies," noted analysts at Goldman Sachs. "While Nvidia has yet to report, the Magnificent 7 apparently grew EPS by 26% year/year in Q2, a 12% beat relative to consensus expectation coming into earnings season."
This week's results will provide some colour on the health of consumer spending with Home Depot, Target, Lowe's and Walmart all reporting.
In bond markets, the chance of Fed easing is keeping down short term Treasury yields while the longer end is pressured by the risk of stagflation and giant budget deficits, leading to the steepest yield curve since 2021.
European bonds also have been pressured by the prospect of increased borrowing to fund defence spending, pushing German long-term yields to 14-year highs.
Wagers on more Fed easing has weighed on the dollar, which dropped 0.4% against a basket of currencies last week to last stand at 97.851.
The dollar was a fraction firmer on the yen at 147.33, while the euro held at US$1.1704 after adding 0.5% last week.
The dollar has fared better against its New Zealand counterpart as the country's central bank is widely expected to cut rates to 3.0% on Wednesday.
In commodity markets, gold was stuck at US$3,328 an ounce after losing 1.9% last week.
Oil prices struggled as Trump backed away from threats to place more restrictions on Russian oil exports.
Brent dropped 0.4% to US$65.61 a barrel, while US crude eased 0.2% to US$62.67 per barrel.
Sign Our PetitionThe recent developments in global financial markets, particularly in Asia, are reflective of larger geopolitical dynamics and the ongoing shifts in economic policy that have been at the forefront of international discourse. As markets react to potential changes in U.S. interest rate policy and developments in the Russia-Ukraine conflict, it is critical to unpack the implications of these events through the lens of historical context and social justice. The interplay of economics and international relations is particularly telling about how power dynamics reshape not only markets but also the lives of individuals across the globe.
The meeting between U.S. President Donald Trump and Russian President Vladimir Putin in Alaska signals a notable shift toward seeking a peace deal in Ukraine, rather than prioritizing a ceasefire. This pivot is not merely a diplomatic maneuver but has profound implications for the people of Ukraine, who continue to suffer the dire consequences of war. Historical parallels can be drawn to the Munich Agreement of 1938, where appeasement strategies failed to secure peace and instead emboldened aggressors. The urgency for a solid resolution that genuinely addresses the needs and rights of the Ukrainian populace is paramount; it is essential that discussions prioritize the sovereignty and territorial integrity of nations rather than geopolitical convenience.
Moreover, the economic implications of potential peace talks cannot be ignored. The easing of tensions between Russia and the U.S. may result in a temporary uptick in market confidence, as indicated by rising share prices across Asia. However, this market stability is often at odds with the realities faced by ordinary citizens. As seen in the past, economic gains in financial markets do not always translate into improved conditions for working-class individuals. Instead, the wealth generated tends to concentrate at the top, reinforcing existing inequalities. This is especially relevant in the context of the current earnings season, where major corporations report record profits while wage stagnation and job insecurity persist for the majority. This disconnection between market performance and everyday hardships faced by people highlights the need for policies that prioritize economic equity and social safety nets.
The upcoming Jackson Hole symposium, where the Federal Reserve will discuss interest rate policy, is another critical juncture that could impact the global economy. The potential for rate cuts may be seen as a positive move for financial markets, yet it is essential to question who truly benefits from such policies. Historically, periods of low-interest rates have disproportionately favored corporations and wealthy investors, leading to asset bubbles rather than meaningful wage growth or job creation for average workers. As policymakers consider their next steps, the call for a more inclusive economic strategy that addresses the needs of those most affected by financial policy is increasingly urgent. It is time to shift the narrative from one that glorifies market performance to one that prioritizes human well-being.
Furthermore, the rising yields on European bonds and the implications of increased defense spending highlight the broader social struggles at play. As countries allocate substantial resources to military and defense budgets, the question arises: what about the pressing social issues such as healthcare, education, and housing? The militarization of budgets often comes at the expense of critical social programs that support vulnerable populations. The ongoing conflict in Ukraine has led to increased defense spending across Europe, which can detract from investments in social infrastructure. Historical context reveals that nations frequently prioritize military expenditures in times of crisis, but this approach often exacerbates social inequalities and fails to address the root causes of conflict.
In conclusion, the interplay between financial markets, geopolitical dynamics, and social justice issues is complex and multifaceted. As we analyze these developments, it is essential to advocate for a more equitable economic framework that prioritizes the needs of ordinary people over corporate profits and military spending. Engaging in thoughtful discourse about these issues can empower individuals to challenge prevailing narratives and advocate for policies that foster social justice and economic equity. The current moment presents an opportunity for collective action and solidarity, reminding us that true progress is measured not just by market indices but by the well-being and dignity of all individuals.
The dynamics of global finance often seem distant from the everyday lives of Americans, yet they are intricately tied to the policies and decisions made by leaders in Washington and around the world. The recent developments surrounding U.S. interest rates, oil prices, and the geopolitical landscape involving Russia and Ukraine provide a critical lens through which we can understand the interconnectedness of economic and foreign policy. As the Fed prepares for potential rate cuts and markets react to these possibilities, it’s essential to explore what these changes mean for the average American and how we might advocate for a more equitable economic framework.
Historically, the U.S. Federal Reserve's decisions on interest rates have had profound implications for the economy, influencing everything from consumer spending to inflation rates. In the context of the article, the anticipation of a potential rate cut reflects broader economic concerns, including the threat of stagflation and budget deficits. While the stock market appears buoyed by the possibility of lower borrowing costs, many Americans remain disconnected from these financial gains. The reality is that stock market success does not necessarily translate into improved living conditions for working-class families. Therefore, we must advocate for policies that directly benefit the majority rather than the elite few who reap the rewards of financial speculation.
The article also highlights the precarious situation in Ukraine, which has significant implications for global energy markets. The discussions between President Trump and President Putin regarding peace in Ukraine may seem to suggest a potential easing of tensions, yet they raise questions about the U.S.'s role in international conflicts and the ethical ramifications of prioritizing economic interests over human rights. As concerned citizens, we can push for a foreign policy that emphasizes diplomacy and humanitarian assistance rather than military intervention. Engaging with local representatives and participating in grassroots movements advocating for peace can help shift the narrative towards a more constructive and ethically sound approach.
Moreover, the reference to the earnings of major tech companies, particularly the “Magnificent 7”, underscores the growing wealth concentration within a handful of corporations. While these companies experience unprecedented growth, the wage stagnation of the average worker speaks volumes about the inequities embedded in our economic system. This disparity is exacerbated by a political landscape that often favors corporate interests over the needs of the populace. To combat this, we can advocate for policies that prioritize fair wages, support small businesses, and regulate monopolistic practices. By mobilizing community support for local businesses and demanding corporate accountability, we can create a more balanced economic environment that uplifts all citizens.
As the article discusses the potential for easing monetary policy and its impact on the dollar, we must consider the broader implications for social programs and public services that depend on healthy government revenue. A focus on corporate tax reform, where large corporations contribute their fair share, can help mitigate budget deficits and support social programs that are critical for the well-being of communities. Engaging in conversations about tax justice and advocating for progressive taxation can help shift the burden away from working families and ensure that essential services remain robust and accessible.
In conclusion, the article serves as a reminder of the complexities and interconnections within our global economy and the importance of informed civic engagement. As we navigate through economic uncertainties and geopolitical tensions, we must remain vigilant and proactive in advocating for a system that serves the many rather than the few. By promoting policies that prioritize social equity, fair wages, and diplomatic solutions, we can work towards a future that not only addresses the immediate financial concerns but also lays the groundwork for a more just and sustainable society. Engaging in these discussions and actions is vital, and it empowers individuals to be part of the change we wish to see.
To respond effectively to the issues highlighted in the article, it is essential to engage in concrete actions that promote economic and social equity, address climate change, and advocate for peace. Below is a detailed list of ideas and actions that individuals can take:
### Personal Actions
1. **Educate Yourself and Others:** - Stay informed about economic policies and their impacts on working-class communities. Share insights with friends and family to raise awareness about the implications of interest rate changes and international relations.
2. **Advocate for Economic Justice:** - Write to your local representatives and demand policies that prioritize workers' rights and fair wages.
3. **Support Peace Initiatives:** - Engage with organizations that work towards peaceful resolutions in conflict areas, focusing on humanitarian efforts rather than military solutions.
4. **Promote Environmental Sustainability:** - Advocate for policies that support renewable energy and reduce reliance on fossil fuels, especially in light of fluctuating oil prices.
### Specific Actions
1. **Petition for Economic Reform:** - **Initiative:** Sign and share petitions that demand fair economic policies. - **Example Petition:** "Stop Corporate Influence in Politics." Find it at **MoveOn.org** or **Change.org**. - **What to Say:** "I urge you to support policies that limit corporate influence in politics to prioritize the needs of the community."
2. **Contact Elected Officials:** - **Who to Write:** - **Your U.S. Senator:** - For example, **Senator Elizabeth Warren** - Email: **warren.senate.gov/contact** (Use contact form) - Mailing Address: 2400 JFK Federal Building, 15 New Sudbury Street, Boston, MA 02203 - **Your U.S. Representative:** - Look up your representative via **house.gov**. - Example: **Representative Alexandria Ocasio-Cortez** - Email: **aoc@congress.gov** (Use contact form) - Mailing Address: 312 Hart Senate Office Building, Washington, DC 20515
- **What to Say:** - “I urge you to support initiatives that promote economic equity, prioritize peace in international relations, and invest in renewable energy resources.”
3. **Participate in Local Activism:** - Join local groups focused on economic policy reform, such as **Indivisible** or **Our Revolution**. Attend meetings or participate in campaigns advocating for social justice and economic reform.
4. **Engage in Social Media Advocacy:** - Use platforms like Twitter, Instagram, and Facebook to share information about economic policies and their effects. Use hashtags like #EconomicJustice, #PeaceNotWar, and #ClimateAction to join broader conversations.
5. **Support Local Businesses:** - Prioritize shopping at and supporting local businesses that align with social and environmental values, which can help bolster community resilience against market fluctuations.
6. **Volunteer for Humanitarian Organizations:** - Get involved with organizations like **Doctors Without Borders** or **UNICEF**, which work in conflict zones and assist affected populations.
7. **Contribute Financially:** - If possible, consider donating to organizations that support peace initiatives, such as **Peace Action** or **The International Rescue Committee**.
By taking these actions, individuals can contribute to a more equitable and sustainable future while promoting peace and justice in their communities and beyond.