Oil prices bounce after sharp losses; Ukraine peace talks in focus

Chinese President Xi Jinping engaged in a phone conversation with former U.S. President Donald Trump, discussing key issues such as trade, Taiwan, and Ukraine. This dialogue is notable as it precedes their planned meeting in China in April, highlighting ongoing diplomatic interactions between the two leaders.

Oil prices have steadied as traders respond to a risk-on mood in the financial markets, countering the potential impact of ongoing peace talks regarding Ukraine that may lead to increased crude supplies. This stabilization follows a period of volatility influenced by geopolitical tensions and market sentiment.

This week marks a pivotal moment for the UK government as Chancellor Rachel Reeves prepares to unveil her budget, a critical event that could define her leadership and the Labour party's future. The discussions leading up to the budget have been intense, with significant implications for fiscal policy and economic management. Behind the scenes, Kiran Stacey shares insights from his recent trip to Johannesburg with Keir Starmer, including talks on the Ukraine peace plan.

US equity futures have risen as traders anticipate a potential rate cut in December, coinciding with positive signals from US State Secretary Marco Rubio and Ukrainian officials regarding progress in peace talks aimed at resolving the ongoing conflict in Ukraine. Meanwhile, BHP has once again walked away from its takeover bid for Anglo American after a new approach was rejected.

Investors are increasingly purchasing eastern European assets as US-led negotiations aimed at resolving the ongoing conflict in Ukraine provide renewed optimism for a peaceful resolution. This shift has positively impacted the currencies of Eastern European nations, reflecting a growing confidence in the region's economic stability.

The U.S. dollar has declined as renewed expectations for a Federal Reserve rate cut have emerged, while the euro has strengthened amid ongoing discussions regarding Ukraine. This shift reflects market reactions to monetary policy signals and geopolitical developments.

European stocks remained steady, recovering from losses primarily caused by a significant drop in Novo Nordisk A/S shares following the failure of its Ozempic pill in Alzheimer's trials. Investors are also closely monitoring potential peace negotiations between Ukraine and Russia, which could impact market dynamics.

Oil prices have continued to decline, marking the largest weekly loss since early October, as traders assess the potential for a peace deal between Ukraine and Russia that could increase crude oil supplies in an already saturated market. This drop reflects ongoing market uncertainty regarding geopolitical tensions and their impact on oil prices.