🗓 Tuesday, August 26, 2025
► Europe weaker – France in the spotlight
European equities fell as political uncertainty in France weighed on sentiment, with a confidence vote looming. The Stoxx 600 -0.7%, CAC 40 -1.5%, DAX -0.35%, FTSE 100 -0.6%. French risk premiums rose, with the spread on French 10-year bonds over Bunds (German bonds) widening to 77bps. Italy and Spain also traded lower.
► Wall Street cautious – Trump targets the Fed
US futures were slightly softer (S&P 500 -0.2%, Nasdaq flat, Dow -0.6%) after President Trump announced plans to remove Fed Governor Lisa Cook — a move raising fresh questions over central bank independence. Longer-dated Treasuries sold off, pushing 10Y yields up 2bps to 4.30%. Gold edged higher, while the dollar fluctuated. Trade tensions returned to focus, with threats of new tariffs and export restrictions on high-tech goods adding to the risk-off tone.
► Asia mixed – Hong Kong & Japan weaker
Asian markets followed the risk-off sentiment: Japan’s Nikkei -1.0% to 42,394, Hong Kong’s Hang Seng -1.2% to 25,525. Korea’s Kospi -1.0%, Australia’s ASX 200 -0.4%. Mainland China proved more resilient (Shanghai -0.4%, Shenzhen +0.3%), and Taiwan was steady. FX moves were moderate: USD/JPY 147.6 (-0.1%), USD/CNY 7.16.
Subscribe to see more
