Feb 28 (Reuters) - Investors were stunned 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.
"It's disturbing," said Jack McIntyre, portfolio manager at
Brandywine Global. "It looked like we were moving towards
progress on a peace deal or a ceasefire between Russia and
Ukraine and maybe now that gets to come on hold, so you have to
price in a little bit more uncertainty," he said.
Zelenskiy's U.S. visit was aimed to keep the U.S. from
aligning with Russian President Vladimir Putin, who launched the
Ukraine invasion three years ago. Instead, he clashed with Trump
and Vice President JD Vance over the war, highlighting Kyiv's
struggle to retain U.S. backing. Trump later accused Zelenskiy
of disrespecting the United States.
Benchmark 10-year Treasury yields, which move inversely to
prices, declined after the public confrontation and were last
seen at 4.229% from about 4.27% earlier on Friday.
European stock futures fell while U.S. stock indexes lost
ground on Friday. The Dax and CAC40 futures fell
0.6% and the Eurostoxx 50 futures dropped as much as
1.4% and were last down 0.8%. The S&P 500 index was last
down 0.02%. The euro fell by as much as 0.37% to a
two-week low of $1.036, before paring some of that decline to
trade at $1.0366.