Markets Balance Geopolitics, Inflation Risks, and Diverging Economic Signals

Edmond de Rothschild Asset Management’s Flash Marchés (22 August 2025) reviews how geopolitical negotiations and shifting macroeconomic data are shaping markets.

• Geopolitics: Trump-Putin talks stalled on a ceasefire but initiated negotiations on Ukrainian security guarantees, fueling cautious optimism in Europe.

• Monetary policy: U.S. job creation slowed while inflation reaccelerated, raising uncertainty ahead of Powell’s Jackson Hole remarks; the Fed remains divided on rate cuts.

• Regional dynamics: Europe shows resilience with PMI expansion, while U.K. inflation surprises upward and China’s growth indicators soften.

For deeper insights into portfolio implications and asset allocation strategy, see the full report.