Market and Politics Report- Mid-August 2025
So far, we have seen lots of developments in the first half of August. From the Trump-Putin Summit in Alaska to movements in the market, there was a lot of news to take in.
On Friday, August 15, President Trump and President Putin met in Anchorage, Alaska. They met to discuss the Russo-Ukrainian War, which has been raging for over three years. Mutual respect seemed present between the two as they discussed possible peace terms for when the war ends. The outcome of this meeting was that no deal was made, and President Trump shifted his goal to achieve lasting peace, rather than a quick ceasefire. During the meeting, map changes were proposed, with the most notable one coming from President Putin, who requested that Russia maintain its control of the Donbas region once the war ended. However, President Trump has not expressed interest in this proposal. We will have to follow the news for further developments on the war and future peace agreements.
In early August, CPI numbers from July came in at 2.7%, below expectations, while core inflation came in at 3.1%, above expectations. This indicates a relatively stable buying market, with tariffs still exerting a significant influence on markets. Other news about markets, due to lower inflation during the Trump Administration and a slightly slower jobs market, suggests that the Fed is expected to lower interest rates at their September meeting.
News on global markets: Indexes such as the US's S&P 500, Japan's Nikkei 225, and Europe's FTSE 100 have reached all-time highs in the last week. This is likely due to global economics making a remarkable comeback, driven by corporate earnings, such as in the tech sector, and the expectation of rate cuts by the Fed in September. We will have to watch to see further developments in markets following the Fed meeting in September, as well as the impact of geopolitical events.
Well, that was an action-packed first half of August. Stay tuned for our end-of-month update on global markets and politics.
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