Trump-Zelensky Oval Office Showdown Unravels Global Markets
Investors were unnerved on Friday after Ukrainian President Volodymyr Zelenskiy's meeting with U.S. President Donald Trump ended in disaster, adding uncertainty to financial markets already jittery due to weakening economic data and volatility around U.S. trade policies. The two leaders traded verbal blows before the world's media at the White House, pushing markets to react with a risk-off bid for safe-haven Treasuries as the public spat added uncertainty over the prospect of a peace deal with Russia. Benchmark 10-year Treasury yields declined after the confrontation, reflecting market anxiety about Trump's unpredictable approach to diplomacy.
- The sudden escalation in tensions between Trump and Zelenskiy underscores the high stakes involved in international diplomacy and the risks of miscalculation by world leaders.
- As investors grapple with the uncertainty surrounding Trump's trade policies and diplomatic approach, how will they reassess their bets on the U.S. economy and global growth prospects in the coming weeks?