🗓 Wednesday, August 20, 2025
► Europe mixed with slight profit-taking setting in
European equities were broadly steady after recent highs, reflecting some textbook profit-taking. The Stoxx 600 +0.1%, FTSE 100 +0.2%, CAC 40 flat, while the DAX slipped -0.3% and Italy’s FTSE MIB -0.2%. Spain’s IBEX was little changed. UK gilts firmed with 2Y yields down 4bps at 3.93%. Bunds also gained (10Y at 2.73%, -2.6bps). EUR/USD steady at 1.165, GBP/USD at 1.349, EUR/JPY at 171.7.
► Wall Street steadies after heavy tech selloff; Retail mixed
US futures little changed (S&P 500 -0.1%, Nasdaq -0.15%, Dow -0.1%) after yesterday's sharp tech-driven sell-off – or rather the rotation out of technology/growth stocks into other, primarily more defensive sectors. Nvidia tries to rebound +0.2% in premarket, calming chip-sector nerves, while Intel slipped on reports of possible government equity stakes under the CHIPS Act, which could also include other chip manufacturers. Retail earnings drew attention: Lowe’s +2.2% after beating expectations and announcing an $8.8bn acquisition; Target plunged -9% on another sales decline and CEO Brian Cornell’s departure. Home Depot continued to hold yesterday's gains after reaffirming guidance. Treasuries steady with 10Y yield at 4.30%. FOMC minutes later today are expected to offer clues on inflation worries and policy outlook ahead of Powell’s Jackson Hole speech.
► Asia mixed; Japan and Taiwan retreat, China bounces
Asian markets were uneven. Japan’s Nikkei dropped -1.5% to 42,889 after recent records, while Taiwan tumbled -3%. Korea’s Kospi -0.7%. China steadied, with Shanghai +1.0% to 3,766 and Shenzhen +0.9% to 11,927. Hong Kong’s Hang Seng +0.2%. India’s Nifty 50 rose +0.3%, Singapore’s STI +0.1%, Australia’s ASX 200 +0.3%. FX moves muted: USD/JPY 147.45 (-0.15%), USD/CNY 7.176, AUD/USD 0.643.
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