Source: Sharecast
The FTSE 100 was down 0.1% at 9,130.89.
The meeting, which is due to take place in Washington, comes after Friday’s meeting between Trump and Zelensky failed to yield a ceasefire.
Joshua Mahony, chief market analyst at Scope Markets, said: "Donald Trump’s meeting with Putin somewhat predictably ended with a lack of any agreement that ends the war with Ukraine, although he does enter today’s Zelensky meeting with a plan that is unlikely to go down well. From the Russian perspective, their desire to lock in their military gains as a newly expanded part of Russia will undoubtedly prove a huge stumbling block, while talk of land swaps are equally as unpalatable. Zelensky has already stated that the Ukrainian constitution makes giving up land to Russia ‘impossible’.
"However, another part of the solution lays in NATO membership, with Trump posting that he can end the war almost immediately if Ukraine pledges to give up aspirations on joining the group. While the US and Europe could still provide security guarantees as part of the deal, there will likely be a hesitancy given how the historical agreement to give up on their nuclear programme went. While we continue to see the 50% tariffs on India in part due to their purchases of Russian oil, the fact that China has remained untouched for doing the same means we are unlikely to see an escalation that could drive a spike in oil prices."
Later in the week, attention will turn to the Jackson Hole Symposium in Wyoming.
Patrick Munnelly at TickMill Group said it’s "expected to be a pivotal moment for markets as Federal Reserve Chair Powell outlines the Fed's near-term policy direction".
"However, as is often the case, differing opinions from figures like Trump and Bessent may add to the noise, especially with ongoing discussions around Fed appointments, potential legal challenges, and changes in the labour market report," he added.
On home shores, a survey out earlier showed that consumer sentiment picked up in August after the Bank of England cut interest rates.
The S&P Global consumer sentiment index increased to 47.0 from 45.1 in July. This marked the highest reading since last October’s Budget announcement, with all the subcomponents of the headline index registering a rise.
A reading above 50.0 indicates an improvement, while a reading below signals a deterioration in sentiment.
Maryam Baluch, economist at S&P Global Market Intelligence, said: "August CSI data comes hot on the heels of the recent rate cut decision made by the Bank of England earlier in the month. Data collection began just a day after the central bank's announcement, providing a timely snapshot of sentiment in the wake of monetary policy easing.
"Encouragingly, the data reveals a slight revival in household confidence, which is a telling sign that the easing of monetary policy has been received positively by households across the country. The headline index signalled the strongest reading since last October, greatly bolstered by robust perceptions of labour market conditions, which were the second strongest in the survey’s history.
"Households reported less of a squeeze on their finances, and the year ahead outlook was the least pessimistic in nine months. This positive shift indicates less concern among consumers regarding their financial situation. Moreover, households accumulated debt to the least marked degree in three months, despite reporting a greater availability of credit.
"Despite the recent uplift in consumer sentiment, particularly regarding perceptions of the labour market, this positive shift occurs against a backdrop of subdued UK economic performance. Lower borrowing costs could provide a further boost to consumer sentiment. Indeed, if the uptick in sentiment can be sustained, it could translate into better fortunes for the wider UK economy."
Earlier, figures from Rightmove showed that house prices fell in August, but sales hit a five-year high.
Corporate news was scarce as the summer lull set in, but Babcock surged to the top of the FSTE 100 as RBC Capital Markets initiated coverage of the stock with an ‘outperform’ rating and 1,200p price target.
Dr Martens was the standout gainer on the FTSE 250 on the back of a rating upgrade by Peel Hunt.
Land Securities edged lower higher after saying it exchanged contracts for the sale of its Queen Anne's Mansions office block in London to Arora Group for £245m.
Great Portland Estates fell after it secured three new fully managed leasing deals, totalling 11,720 square feet of "premium, refurbished office space".
Close Brothers slumped after RBC Capital downgraded the stock to ‘sector perform’ from ‘outperform’.
Food producer Cranswick lost ground following fresh animal cruelty allegations.
Market Movers
FTSE 100 (UKX) 9,130.89 -0.09%
FTSE 250 (MCX) 21,731.14 -0.12%
techMARK (TASX) 5,309.37 0.31%
FTSE 100 - Risers
Babcock International Group (BAB) 1,037.00p 4.22%
Standard Chartered (STAN) 1,327.00p 1.65%
BAE Systems (BA.) 1,788.00p 1.59%
AstraZeneca (AZN) 11,740.00p 1.28%
Persimmon (PSN) 1,106.00p 1.14%
Beazley (BEZ) 787.00p 1.09%
British American Tobacco (BATS) 4,239.00p 0.98%
Games Workshop Group (GAW) 15,810.00p 0.83%
Auto Trader Group (AUTO) 810.40p 0.80%
GSK (GSK) 1,436.00p 0.77%
FTSE 100 - Fallers
Centrica (CNA) 163.80p -1.80%
Legal & General Group (LGEN) 258.40p -1.56%
Glencore (GLEN) 295.30p -1.48%
Rio Tinto (RIO) 4,453.00p -1.35%
Ashtead Group (AHT) 5,258.00p -1.31%
Aviva (AV.) 661.60p -1.25%
InterContinental Hotels Group (IHG) 8,740.00p -1.20%
Anglo American (AAL) 2,146.00p -1.11%
SEGRO (SGRO) 632.40p -1.09%
easyJet (EZJ) 510.20p -1.09%
FTSE 250 - Risers
Dr. Martens (DOCS) 81.00p 8.43%
Bridgepoint Group (Reg S) (BPT) 357.80p 5.17%
Endeavour Mining (EDV) 2,532.00p 3.09%
JPMorgan Indian Investment Trust (JII) 1,072.00p 2.68%
Marshalls (MSLH) 194.00p 2.54%
Moonpig Group (MOON) 208.50p 2.21%
Rank Group (RNK) 141.00p 2.03%
Future (FUTR) 757.00p 1.88%
Watches of Switzerland Group (WOSG) 328.20p 1.80%
Hochschild Mining (HOC) 303.00p 1.54%
FTSE 250 - Fallers
Close Brothers Group (CBG) 494.20p -4.22%
Cranswick (CWK) 5,110.00p -2.67%
Computacenter (CCC) 2,326.00p -2.51%
Breedon Group (BREE) 367.80p -2.23%
Pagegroup (PAGE) 257.00p -1.98%
Hays (HAS) 61.80p -1.90%
Harworth Group (HWG) 177.00p -1.67%
Vietnam Enterprise Investments (DI) (VEIL) 716.00p -1.65%
Auction Technology Group (ATG) 337.50p -1.46%
Great Portland Estates (GPE) 319.00p -1.39%