🗓 Thursday, September 18, 2025
► Europe strong – Tech & luxury boost
European equities climbed as investors welcomed the Fed’s first rate cut and looked for more easing ahead. Stoxx 600 +0.9%, DAX +1.2%, CAC 40 +1.2%, FTSE 100 +0.3%, FTSE MIB +0.7%, IBEX +0.2%. Bund 10Y steady near 2.68%; UK 10Y 4.63% (flat). BoE kept rates at 4% (7-2 vote) and slowed QT pace, easing gilt pressure. EUR/USD 1.182 (+0.1%), GBP/USD 1.361 (flat), USD/JPY 147.4 (+0.3%). Tech and luxury sectors outperformed, signaling a shift toward cyclical recovery trades – sectors that typically react positively when risk sentiment and growth expectations improve.
► Wall Street futures surge – Tech leads the charge
Nasdaq 100 futures +1.2%, S&P 500 +0.9%, Dow +0.7% as traders embraced the “Fed-put.” Nvidia and Tesla lead big tech higher.Nvidia announced a $5B investment in Intel to co-develop data center PC chips; Intel +28% (!). Russell 2000 +1.5% futures show risk-on sentiment spreading. Treasury yields little changed: US 10Y 4.065% (flat). Markets still expect two more cuts in 2025. USD slightly firmer but off highs. Focus remains on incoming jobs data to gauge whether more aggressive cuts may be warranted.
► Asia mixed – Japan strong, China underperforms
Asian markets are mixed with China underperforming: Nikkei +1.15%, Kospi +1.4%, Taiwan +1.3% led by tech; Shanghai −1.15%, Shenzhen −1.06%, Hang Seng −1.35% weighed by property weakness. USD/JPY 147.4 (+0.3%). USD/CNY ~7.105, AUD/USD flat.
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