🗓 Friday, August 29, 2025
► Europe wit more profit taking – rotation & ongoing political headwinds
European equities slipped as profit-taking and political risks weighed. The Stoxx 600 -0.35%, DAX -0.15%, CAC 40 -0.25%, FTSE 100 -0.2%, Italy’s FTSE MIB -0.4%, IBEX -1.0%. Banking stocks came under renewed pressure in the UK after windfall tax speculation. French spreads remained elevated, highlighting continued political uncertainty. Bond markets softened, with Bund yields +1bp at 2.71% and UK 10Y at 4.73%. EUR/USD 1.166 (-0.2%), GBP/USD 1.345 (-0.5%), EUR/JPY steady at 171.7.
► Wall Street cautious – PCE in focus, tech weak
US futures were weaker as traders cut exposure before the key inflation print. Nasdaq 100 futures -0.5%, S&P 500 -0.3%, Dow -0.3%. Dell plunged -6% after disappointing AI server sales and margins, with Marvell -12% on weak data center results. Alphabet -1.2% also weighed. Autodesk bucked the trend with +10% after earnings, while Best Buy slipped despite meeting guidance. Treasuries sold off modestly, 10Y yield +2bps to 4.22%. The dollar gained, DXY +0.25%. Traders now see core PCE rising +2.9% YoY in July – the fastest in five months – reinforcing the Fed’s delicate balancing act but also reducing the potential for a major upset as moderately accelerating inflation is expected.
► Asia mixed – China firmer, Japan softer
Asian stocks showed diverging paths: Shanghai +0.4%, Shenzhen +1.0% on steady domestic inflows, while Hong Kong lagged +0.3% after earlier weakness. Japan’s Nikkei dipped -0.25%, Taiwan flat, Korea’s Kospi -0.3%. Australia’s ASX -0.1% and India’s Nifty -0.3% also slipped modestly. FX markets saw a stronger dollar: USD/JPY 147.3 (+0.25%), USD/CNY 7.13, AUD/USD 0.652.
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