Global equity markets edged closer to record highs as investors adopted a cautious but optimistic stance ahead of a high-profile meeting between US President Donald Trump and Russian President Vladimir Putin.

The anticipated discussions, which are expected to touch on global security, energy policy, and economic cooperation, have injected fresh uncertainty and intrigue into global financial markets.

Major indices in the United States, Europe, and Asia traded near all-time peaks, buoyed by strong corporate earnings, resilient economic data, and hopes that geopolitical tensions will ease following the bilateral talks.

The MSCI All Country World Index, a broad measure of global equities, continued to hover just below its historical high, reflecting sustained investor appetite for risk assets.

Markets have also been supported by a dovish monetary outlook in key economies, with central banks in the United States, Europe, and Asia either pausing or reversing recent interest rate hikes.

This environment of relatively low borrowing costs has contributed to a rally in tech and industrial stocks, which are viewed as especially sensitive to global growth prospects.

However, the upcoming Trump-Putin engagement has introduced an element of caution. Investors are watching closely for any statements that could shift the balance of global diplomacy or impact trade and energy markets.

Previous meetings between the two leaders have generated strong reactions in financial markets, particularly when issues such as sanctions, cybersecurity, and military cooperation are on the agenda.

Oil and gas stocks also saw modest gains amid speculation that any thaw in US-Russia relations could influence energy exports or lead to adjustments in sanctions that have previously targeted Russia’s energy sector. Meanwhile, gold prices remained flat, suggesting that markets are not currently pricing in significant geopolitical risk.

Currency markets were stable, with the US dollar maintaining strength against most major currencies, while the euro and yen traded in narrow ranges. Traders indicated that volatility could spike depending on the tone and outcome of the Trump-Putin meeting.

With the global economy delicately poised and geopolitical uncertainties simmering, financial markets remain sensitive to signals from global leaders.

The upcoming talks could either reinforce the bullish momentum in equities or trigger a risk-off sentiment depending on the messaging that emerges.