🗓 Monday, August 18, 2025
► Europe slips as profit-taking follows Trump-Putin letdown
European stocks started the week on a weaker note, with the Stoxx 600 losing 0.20%, the DAX 0.40% and the CAC 40 0.80% as investors took profits after recent highs. The FTSE 100 fell only moderately by 0.1%, while the Italian FTSE MIB lost 0.3%. Bonds caught a bid, with Bund 10Y yields at 2.75% (-2.5bps) and UK 10Y at 4.68% (-1.5bps). EUR/USD held at 1.168 (-0.13%), GBP/USD at 1.354, and EUR/JPY stable at 172.2. Markets remain cautious after the Trump–Putin meeting failed to deliver a ceasefire, shifting attention to today’s White House talks with Trump, Zelenskyy, and European allies.
► Wall Street futures softer as Fed expectations drive sentiment
US futures traded slightly lower (S&P 500 -0.1%, Nasdaq 100 -0.1%, Dow -0.1%) after last week’s strong run. Focus now turns to Jackson Hole, with Fed Chair Powell expected to clarify the September rate-cut outlook. Treasuries gained at the long end (10Y 4.29%, -2bps; 2Y 3.74%, -1bp), reflecting conviction for a quarter-point cut next month. Investor sentiment remains underpinned by resilient earnings, but stretched valuations and geopolitical uncertainty around US–Ukraine–Russia talks keep risk appetite in check.
► Asia mostly higher; Japan leads, Korea weakens
Asian markets reflected cautious optimism. The Nikkei 225 rose +0.77% to 43,714, hitting a fresh all-time high, while Shanghai +0.85% to 3,728 and Shenzhen +1.73% to 11,836 gained on hopes of targeted Chinese stimulus. India’s Nifty 50 jumped +1% to 24,877, and Australia’s ASX 200 added +0.23%. Hong Kong’s Hang Seng lagged at -0.37% to 25,177, while Korea’s Kospi dropped -1.5% to 3,177. Singapore’s STI also slid -1.02%. FX moves were modest: USD/JPY at 147.40 (+0.16%), USD/CNY steady at 7.178, AUD/USD slightly firmer at 0.651.
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