🗓 Friday, August 8
Europe: Stoxx 600 set for best week since May; FTSE 100 dips on BoE caution; DAX underperforms
European equities are ending a positive week mixed, with the Stoxx 600 +0.2% heading for its strongest weekly gain since May, supported by hopes of progress in US-RU talks and US-China trade negotiations. The DAX trades -0.20% lower as Munich Re (-8.6%) cut revenue guidance, while the CAC 40 rose +0.25% and FTSE MIB gained +0.90% on upbeat earnings from Lotus Bakeries and resilient bank performance. The FTSE 100 lagged slightly (-0.10%), with UK yields edging up to 4.575% after the BoE reiterated that further easing would be “gradual and careful.” EUR/USD eased to 1.164, while GBP/USD was stable at 1.345.
US: Futures hold near record highs amid resilient earnings; Fed watch continues
US futures are steady (S&P 500 +0.2%, Nasdaq 100 +0.2%, Dow +0.1%) after a week of gains driven by earnings resilience and dovish Fed expectations. The S&P 500 is up ~30% from April lows, but an increasing number of strategists warn of near-term pullback risk given high valuations and lingering tariff uncertainties. Tariff relief for Japan’s auto exports and clarity on universal stacking rules lifted mood, though India and Swiss gold exports now face steep levies. Fed Governor pick Stephen Miran and rising odds of a more dovish chair (Waller) add to policy shift speculation. Corporate news saw Meta arrange $29B financing for US data centers, Intel defend its CEO, and GM secure China-made EV batteries. Treasury yields were steady at 4.25%, with the dollar index (DXY) slightly lower (-0.10%).
Asia: Nikkei leads regional gains; mixed session as China, India lag
Asian equities were mixed, with Japan’s Nikkei 225 rallying +1.85% on relief that US tariffs won’t be cumulative for Japanese goods, and hopes of revived trade momentum. Kospi (-0.55%) and Hang Seng (-0.89%) fell on tech weakness and China growth concerns. Shanghai Composite (-0.12%) and Shenzhen (-0.26%) eased despite a stable yuan at 7.184. India’s Nifty 50 dropped -0.82% on new US tariffs targeting Indian exports. FX markets saw USD/JPY rise to 147.67, AUD/USD steady at 0.652, and NZD/USD at 0.595.
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