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Investors unnerved by heated Trump-Zelensky Oval Office showdown
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Investors unnerved by heated Trump-Zelensky Oval Office showdown
Feb 28, 2025 12:23 PM

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.

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