🗓 Thursday, August 21, 2025
► Europe slips as caution dominates before Fed & PMIs
European equities slipped as investors booked profits and stayed cautious before today’s PMIs and Jackson Hole. German and Eurozone PMIs came in better than expected – German manufacturing rose to 49.9 (vs. expected 49.0), still slightly in contraction. The Stoxx 600 -0.4%, DAX -0.3%, CAC 40 -0.6%, FTSE 100 -0.3%, and Italy’s FTSE MIB -0.1%. Spain’s IBEX led declines at -0.6%. UK gilts weakened with 10Y yields up 5bps to 4.72%, while Bunds edged higher to 2.74%. EUR/USD steady at 1.165, GBP/USD at 1.347, EUR/JPY at 172.3.
► Wall Street futures softer; Fed, Powell, PMIs in focus
US futures pointed lower (S&P 500 -0.15%, Nasdaq flat, Dow -0.3%) after another tech-driven decline. Nvidia bucked the trend in premarket (+0.7%), while most peers in the “Mag 7” slipped. Retail earnings were in focus: Walmart raised its full-year outlook despite tariff pressures, saying it had started selectively passing on higher costs. Target remained weak after yesterday’s sharp selloff. Treasuries eased, with 10Y yields at 4.31% (+2bps). Traders await Powell’s Jackson Hole speech on Friday for guidance on the path of rate cuts.
► Asia mixed – Japan weaker, Australia at record high
Asian trading was mixed. Japan’s Nikkei fell -0.7% to 42,610, while Hong Kong’s Hang Seng -0.2%. China posted small gains, with Shanghai +0.1% to 3,771 and Shenzhen nearly flat. Korea’s Kospi gained +0.4%. Australia surged +1.1% above the 9,000 mark – new ATH. India’s Nifty 50 +0.1%, Singapore’s STI +0.3%, while Taiwan rebounded sharply +1.4%. FX moves modest: USD/JPY 147.8 (+0.3%), USD/CNY 7.178, AUD/USD 0.643.
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