European Stocks End Mixed on Eve of Trump–Zelenskyy Talks

European stock markets ended Monday’s session in mixed territory as investors weighed sector-specific gains against broader geopolitical uncertainty. Attention remained firmly on upcoming peace talks in Washington, where U.S. President Donald Trump, Ukrainian President Volodymyr Zelenskyy, and European leaders are expected to negotiate a potential framework for ending the conflict.

Market Performance

• Pan-European STOXX 600: Flat, little overall movement
• Germany’s DAX: –0.4%
• UK’s FTSE 100 & FTSE 250: Both slipped about –0.1%

Caution dominated trading as markets positioned defensively ahead of the high-stakes talks and this week’s Jackson Hole symposium, where Federal Reserve Chair Jerome Powell is expected to signal future U.S. monetary policy direction.

Sector Movers

Gainers

• Renewables:

• Vestas surged +16.4%following U.S. guidance on wind and solar subsidies.
• EDP Renováveis, Ørsted, and RWE also recorded strong gains.
  • Healthcare:
• Novo Nordisk rose +4.5%after the FDA granted accelerated approval for its obesity drug Wegovy in treating a serious liver condition.
  • Defence:
• Rheinmetall (+2.9%), Renk (+3.5%), and Babcock (+3.7%) advanced amid geopolitical uncertainty.
  • UK Defensive Sectors:
• Precious metals, healthcare, and utilities each gained more than 5%.

Decliners

• Banking:

• Commerzbank dropped –3.7%after a downgrade from Deutsche Bank.
• Euro-zone banks overall fell about –1.5%, retracing part of this year’s earlier rally.
  • Energy & Financials (UK):
• Energy stocks shed –0.6%as oil prices dipped.
• Financials also lagged.

Key Drivers

1. Geopolitical Uncertainty
   Markets adopted a wait-and-see stance before Trump–Ukraine talks, with Trump signaling a preference for a “full peace deal” rather than a temporary ceasefire.
2. Interest Rate Outlook
   Anticipation is building ahead of Jackson Hole, where the Fed may hint at a possible September rate cut.
3. Oil Price Volatility
   Crude prices softened amid speculation over U.S. sanctions policy and potential geopolitical shifts, pressuring energy equities.

European equities appear set for continued cautious trading in the coming days. While sector-specific catalysts—such as renewable energy subsidies and pharmaceutical approvals—drove strong individual gains, the broader market remains subdued. Much will depend on the outcome of Washington’s peace talks and signals from the Federal Reserve later this week.