Global stocks near record peak as markets await Trump-Putin talks

US President Donald Trump, setting off for the Alaska meeting with Vladimir Putin, described his Russian counterpart as a 'smart guy' and hailed a good respect level on both sides

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Global stocks traded near record highs on Friday as investors awaited talks between Donald Trump and Vladimir Putin over Ukraine in Alaska and for US retail data that may give clues on the health of the world's biggest economy.

The MSCI All Country World Index consolidated recent gains as European stocks edged higher in early trading. The index was last up 0.28 at 953.54, just shy of the record level of 954.21 set on Wednesday.

The White House has said the Trump-Putin meeting will take place at 11 a.m. Alaska time (1900 GMT), with the US president's hopes of a ceasefire agreement on Ukraine uncertain. Trump has said a second summit involving Ukrainian President Volodymyr Zelenskiy could follow if the talks go well.

"There's still a small degree of risk premium in European markets because of the war. Any type of resolution will ultimately pare that back," said Shaniel Ramjee, co-head of multi-asset at Pictet Asset Management, adding that oil and other commodity prices could also react.

"But I think that the market has learnt not to expect too much from these negotiations. Ultimately, Zelenskiy and the Europeans are not invited. They will need to be involved in any final negotiation."

"What it did was to get rid of all the chat about a 50 basis point cut (in September)," said Mike Houlahan, director at Electus Financial Ltd in Auckland.