🗓 Tuesday, August 12
► Europe mixed as Putin-Trump meeting optimism fades
European markets saw muted action as early optimism over US-Russia talks faded following Trump’s downplaying of expectations. The Stoxx 600 was flat, with defense stocks outperforming on continued Ukraine conflict risk. The DAX fell 0.45% after disappointing German economic sentiment data (ZEW), while the CAC 40 rose 0.10% and the FTSE 100 gained 0.10%. The UK unemployment rate remained stable at 4.7%, in line with expectations. Pharma was in focus after Bayer agreed to a $1.3B deal to boost its oncology pipeline. Bond yields were stable (Bund 10Y at 2.709%, UK 10Y at 4.603%), the EUR/USD traded at 1.161 (-0.07%), and sterling (GBP/USD) at 1.346 (+0.15%).
► US futures flat ahead of CPI; Chip sector pressured by China restrictions
Wall Street futures traded near the flatline – S&P 500 0.0%, Nasdaq 100 0.0%, Dow +0.1% – as traders await the July CPI release, expected to show +0.3% core inflation and shape the Fed’s September rate decision (currently ~85% odds of a cut according to swap markets). Nvidia (-0.3% premarket) fell after reports China urged local firms to avoid its H20 processors, complicating US export strategies. Treasury yields eased slightly (10Y at 4.28%), and the dollar index (DXY) held steady. Market sentiment remains fragile givenelevated valuations and remaining uncertainty over tariff impacts.
► Asia mostly higher on China-US truce; Japan leads gains
Asia-Pacific markets closed mostly in positive territory as the 90-day extension of the US-China trade truce supported sentiment in Chinese and Hong Kong equities. The Nikkei 225 surged +2.15% to 42,718, Hang Seng added +0.25% to 24,969, Shanghai Composite rose +0.50% to 3,666, and Shenzhen +0.53%. The Kospi fell -0.53% on chip sector weakness, while ASX 200 gained +0.41% with the RBA cutting rates by 25bps as expected. India’s Nifty 50 slipped -0.40%. FX markets were steady with USD/JPY at 148.45 (+0.22%), USD/CNY at 7.189, and AUD/USD at 0.648.
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