Traders have begun actively buying up assets that could benefit from a possible peace agreement between Moscow and Kiev after news of the upcoming meeting between Russian and US Presidents Vladimir Putin and Donald Trump, Bloomberg reports.
According to the agency, Ukrainian dollar bonds demonstrated the best dynamics among all emerging markets, and Eastern European currencies strengthened: the Polish zloty rose by 0.5% against the euro.
Bloomberg writes that the index of Ukrainian shares traded in Warsaw rose to its highest since April this year. In addition, shares of Rusal, one of the few Russian companies that retained their listing on major global exchanges, rose sharply on the Hong Kong Stock Exchange with above-average trading volume. At the same time, shares of Austrian Raiffeisen Bank International, which has a subsidiary in Moscow, rose by more than 13%.
Markets are expecting that a personal meeting between Trump and Putin could provide important signals about a possible end to the Russian-Ukrainian war, notes Sergei Dergachev, a portfolio manager at Union Investment Privatfonds. He himself owns assets that, according to him, could benefit from a potential peace agreement, including bonds of Hungarian and Czech banks, as well as debt obligations of some Turkish and Uzbek companies.
Russian presidential aide Yuri Ushakov said on August 7 that Moscow and Washington had agreed on an agreement to hold a meeting between the leaders of the two countries in the coming days. The following week was chosen as a benchmark, and the exact date of the summit will be determined based on the results of preparations. On the same day, Putin confirmed preparations for a meeting with Trump. Statements about the upcoming summit were made after the visit of US Presidential Special Representative Steven Witkoff to Moscow on August 6, where he was received by Putin. The conversation lasted about three hours.
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