DEFENCE stocks and energy markets are likely to be in focus this week, as European leaders rushed to back Ukraine in talks with US President Donald Trump that may pressure Kyiv to accept a peace deal favouring Russia.
Investors are watching for signs that the US may move closer to Russia in a bid to exploit vast, untapped Arctic energy resources, in a major geopolitical shift that piles pressure on Europe to rapidly boost defence spending.
Trump and Russian President Vladimir Putin ended their weekend summit in Alaska without securing a Ukraine ceasefire agreement, with the US President then saying he now wanted a rapid peace deal that Kyiv should accept.
Ukrainian President Volodymyr Zelenskiy is traveling to Washington today for talks that leaders of nations including Germany, the UK and France will now join.
The euro has rallied 13pc against the dollar this year and traded at about $1.17 on Friday.
Bank of America strategist Michael Hartnett highlighted the potential for US-Russia Arctic drilling projects to exploit 15pc of the world’s undiscovered oil and 30pc of the world’s undiscovered natural gas, resulting in a deep energy bear market.
&uuid=(email))