Markets cautious after Zelensky-Trump talks

Traders work on the floor of the New York Stock Exchange (NYSE) in New York on August 15, 2025. [AFP]

Stock markets traded in a narrow range Tuesday and oil prices dipped after US President Donald Trump held what he called "very good" talks with Ukrainian and European leaders on ending the war.

Hopes for a breakthrough rose after Trump said he spoke by phone with Russian counterpart Vladimir Putin after hosting Ukrainian President Volodymyr Zelensky, German Chancellor Friedrich Merz and others at the White House.

"At the conclusion of the meetings, I called President Putin, and began the arrangements for a meeting, at a location to be determined, between President Putin and President Zelensky," Trump said.

Zelensky said said he was ready for what would be his first face-to-face talks with Putin since Russia's invasion nearly three and a half years ago.

Oil prices, which have been volatile for several days -- Russia is a major crude producer -- fell back after gains on Monday.

In Asia and Europe equity investors largely stayed on the sidelines after Wall Street treaded water on Monday.

Japan's Nikkei briefly hit a fresh intraday record before retreating to close down 0.4 percent.

Shanghai ended flat while Sydney, Seoul and Hong Kong traded lower and Singapore, Bangkok and Mumbai edged up.

In Europe London and Frankfurt were modestly lower in early trade while Paris inched up 0.2 percent.

SoftBank shares fell four percent after it said it would invest $2 billion in Intel, as the US government reportedly considers taking a 10-percent stake in the troubled US chip giant.

Fresh impetus for investors could come from a speech this week by US Federal Reserve chief Jerome Powell at the annual retreat of global central bankers in Jackson Hole.

Markets hope Powell will provide more clues about Fed plans for interest rates when it meets next month, after data last week provided a mixed picture about inflation.

"Even a nod to easing (by Powell) could be enough to trigger profit-taking, and a hint of caution could set off a scramble for the exits," Stephen Innes at SPI Asset Management said.