🗓 Wednesday, August 27, 2025
► Europe steadies after recent losses – politics in focus
European markets were mostly firm, stabilizing after two days of declines. Investors were encouraged by bargain-hunting and anticipation ahead of Nvidia’s results, though political risks remain a headwind. France rebounded modestly despite ongoing turmoil as Prime Minister Bayrou faces a no-confidence vote, while Dutch Prime Minister Dick Schoof’s government now faces similar pressure. The Stoxx 600 was little changed, CAC 40 +0.2%, DAX +0.1%, FTSE 100 flat, while Italy’s FTSE MIB gained slightly. French 10Y yields tightened after Tuesday’s sharp move, but risk premiums stayed elevated. EUR/USD weakened to 1.158 (-0.6%), GBP/USD 1.342 (-0.4%), and USD/JPY 148.1 (+0.5%).
► Wall Street cautious but calm – Nvidia dominates the agenda
US futures traded sideways as traders waited for Nvidia’s crucial earnings release after the bell. The chipmaker, with nearly 8% weight in the S&P 500, could move markets by ~$270B in value (options imply a 6.1% swing). Futures: S&P 500 +0.1%, Nasdaq +0.1%, Dow flat. Alphabet and other AI-linked names were mixed, while MongoDB and Okta surged after strong results tied to AI platform demand. Nvidia rose 0.6% in premarket. Geopolitical factors added noise: Trump’s renewed tariff threats and his move to fire Fed Governor Lisa Cook continue to unsettle confidence in central bank independence. Bonds were stable, 10Y yield 4.27% (+2bps).
► Asia mixed – China weak, Japan firmer
Asian markets were uneven as political and tariff concerns weighed. Mainland China underperformed with Shanghai -1.8% and Shenzhen -1.4% as investors took profits and weighed trade rhetoric. Hong Kong’s Hang Seng dropped -1.3%. Japan’s Nikkei recovered modestly +0.3%, while Taiwan rallied +0.9% and Korea’s Kospi +0.25%. Australia’s ASX 200 gained +0.3% after a soft start, India’s Nifty slipped -1.0%. FX was dollar-friendly, with USD/CNY 7.16 (+0.2%), USD/JPY 148.1 (+0.5%), and AUD/USD weaker at 0.646.
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