🗓 Wednesday, October 8, 2025
► Europe firmer with European stocks shrugging off Wall Street losses
European equities traded higher despite Tuesday’s U.S. tech-led pullback, as investors viewed the dip as healthy consolidation. Gains in defensive and energy stocks offset weakness in semiconductors. Stoxx 600 +0.5%, DAX +0.4%, CAC 40 +0.6%, FTSE 100 +0.55%, FTSE MIB +0.5%, IBEX +0.45%. Bund 10Y 2.68% (-3bps), UK 10Y 4.71% (-1bp). EUR/USD 1.162 (-0.3%), GBP/USD 1.341 (-0.1%), USD/JPY 152.9 (+0.65%) as the yen slumped to its lowest since February after Sanae Takaichi’s LDP leadership victory reduced BoJ hike expectations. Sentiment stayed cautious with valuation worries building but earnings season ahead seen as key for direction.
► Wall Street futures steady; Consolidation after $16T run
US futures were little changed after Tuesday’s drop snapped a 7-day rally. Nasdaq 100 +0.2%, S&P 500 +0.2%, Dow +0.2%. Investors weighed stretched AI valuations after a $16T surge from April lows and weaker cloud margins at Oracle (-2.5%) reignited bubble concerns. Tesla -4% on cheaper EV models. Analysts flagged the rally’s narrow breadth and overbought conditions but noted fundamentals remain solid. US 10Y 4.11% (-2bps), DXY +0.3%. Focus now on Fed minutes and earnings for sustainability signals.
► Asia mostly lower; Japan lags on political shift, tech pullback
Asian markets saw mild losses following Wall Street’s correction. Nikkei -0.45%, Taiwan -0.5%, Hang Seng -0.5%, Kospi -0.3%, ASX -0.1%, while Shanghai +0.5% gained on local stimulus hopes. USD/JPY 152.9 (+0.6%) as BoJ rate-hike expectations eased after Takaichi’s victory. Tech weakness weighed broadly, though mainland China showed resilience.
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