Emerging markets edged higher as investors focused on the Trump-Zelensky talks.

Jin10 data reported on August 18th, that ahead of the talks between Trump and Zelensky, emerging market assets rose slightly, with investors focusing on whether there are signs of progress in the Russia-Ukraine peace protocol. The MSCI Emerging Markets Stock Index rose by as much as 0.6%. Investors remain cautious ahead of the Jackson Hole annual meeting later this week, where Powell’s speech could hint at the possibility of a rate cut in September. “The strong performance of risk assets has been remarkable, and valuations are increasingly tight,” wrote a team led by Deutsche Bank analyst Jim Reid in a report. UBS Global Wealth Management Chief Investment Officer Mark Haefele’s team stated in the report that given the huge gap in negotiating positions and the lack of decisive progress on the battlefield, “we expect the Russia-Ukraine conflict to continue into next year. Any negotiation process will be prolonged due to a lack of trust and significant gaps in objectives, and any protocol may be subject to skepticism.”