Truce Hopes After Planned Trump-Putin Talks Lift Ukraine Bonds and Euro

The Kremlin said it expects Russian President Vladimir Putin to meet with former U.S. President Donald Trump in the coming days as part of Trump’s effort to broker a cease-fire between Russia and Ukraine. Trump has publicly claimed “great progress” in arranging talks with both Moscow and Kyiv. Investors interpreted the prospective diplomacy as lowering geopolitical risk. Ukraine’s international dollar bonds gained almost three cents, with the 2035 note quoted around 51.29 cents on the dollar, according to indicative pricing. Currencies also adjusted: the euro firmed while the U.S. dollar and the Swiss franc, both traditional safe havens, slipped. Oil prices edged lower on expectations that a truce could temper supply-disruption premiums. Analysts at ING said hopes for a settlement are becoming a central driver of foreign-exchange markets, favouring the euro over the dollar and pressuring the franc. They added that further confirmation of negotiations could extend the rally in Ukrainian assets and broaden the rotation out of haven trades.