🗓 Monday, August 25, 2025
► Europe dips slightly as momentum slows
European equities started the week with light profit-taking after Friday’s strong close, when the Stoxx 600 nearly reached an all-time high. Liquidity was thin due to the UK holiday, leaving markets sensitive to headlines. The Stoxx 600 slipped -0.15%, the DAX -0.2%, the CAC 40 -0.57%, and Spain’s IBEX underperformed at -0.56%. The FTSE 100 was fractionally higher +0.13%, while Italy’s FTSE MIB added +0.06%. Bonds were mixed: Bund 10Y up to 2.77% (+4bps) and UK 10Y eased to 4.69%. FX saw mild dollar re-strengthening: EUR/USD 1.169 (-0.22%), GBP/USD 1.349 (-0.25%), EUR/JPY 172.3 (+0.11%).
► Wall Street futures ease after record-setting Dow
US markets see minor profit taking as traders tempered aggressive rate-cut bets following Friday’s rally, when the Dow surged nearly 1.9% to fresh highs. Futures Monday morning: S&P 500 -0.25%, Nasdaq 100 -0.3%, Dow -0.2%. Intel extended gains (+1.5%) after the US government confirmed a 10% stake in the chipmaker (buying stocks with a discount), while Keurig Dr Pepper (-4.0%) fell on news of an $18B deal for JDE Peet’s. Nvidia remains the week’s key catalyst with earnings Wednesday. Treasuries edged lower, 10Y yield at 4.27% (+2bps), 2Y slightly softer. Analysts note Powell’s Jackson Hole remarks kept rate-cut odds elevated (84% chance for September; up from around 70% before Powell's speech), but inflation data and tariffs could complicate the outlook.
► Asia rallies on stimulus hopes; China and Taiwan lead
Asian equities saw broad gains, driven by renewed optimism over Chinese support measures and tech momentum. Shanghai surged +1.51% to 3,884, Shenzhen +2.26% to 12,441, and Hong Kong’s Hang Seng climbed +1.94% to 25,830. Taiwan soared +2.16% to 24,277, while Korea’s Kospi gained +1.3%. Japan’s Nikkei added +0.41% to 42,808, though still lagging its recent highs. Australia’s ASX 200 was steady (+0.06%), India’s Nifty 50 +0.39%. Currency markets stayed calm: USD/JPY 147.4 (+0.33%), USD/CNY 7.156, AUD/USD 0.649.
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