Markets in Asia and Europe moved in numerous instructions on Friday, the twenty second of August, 2025, as traders waited for US Federal Reserve Chairman Jerome Powell’s intently watched speech at Jackson Hole.
His remarks are anticipated to supply indicators on whether or not policymakers might take into account reducing rates of interest at their September assembly.
Global buying and selling has been cautious in latest days, formed by considerations over cussed inflation and blended progress prospects, at the same time as expertise shares, pushed largely by synthetic intelligence, proceed to point out power.
Powell enters the highlight underneath added stress, with President Donald Trump repeatedly calling for price cuts, an uncommon political intervention for the unbiased central {bank}.
In Asia, the temper was cut up. Tokyo’s Nikkei inched up 0.1 p.c after a 0.7 p.c fall the day past. Fresh figures from Japan confirmed core inflation slowing to three.1 p.c in July from 3.3 p.c a month earlier, nonetheless above the Bank of Japan’s two-percent goal, reinforcing expectations {that a} price hike could are available October.
Shanghai delivered the day’s strongest outcome, climbing 1.5 p.c to shut above 3,800 factors for the primary time in ten years, lifted by a surge in shares of semiconductor agency Cambricon.
Markets in Hong Kong, Seoul and Bangkok additionally gained floor, whereas Sydney and Taipei slipped.
READ ALSO: WTO Warns: US Tariffs Could Squeeze Global Trade
European shares started the day extra cautiously. London and Frankfurt edged decrease, whereas Paris posted modest positive aspects.
Analysts stated the hesitation displays uncertainty over Powell’s feedback, Chris Weston, head of analysis at Pepperstone, wrote that Asia “should act as a safe harbour while the Fed’s credibility is under the spotlight.” He added that “hesitation to push risk higher will remain,” stressing there may be “a very low probability” that Powell will explicitly endorse price cuts.
Geopolitics added to the unease, Trump introduced on Thursday, the twenty first of August, 2025, a two-week timeframe to evaluate ongoing peace talks between Moscow and Kyiv, after holding direct conferences with the Russian and Ukrainian leaders in addition to European counterparts.
The prospect of a deal, greater than three years after Russia’s invasion, has stirred hypothesis concerning the potential lifting of sanctions on Russian oil, a situation intently tied to international power costs.
Oil markets prolonged latest positive aspects, with costs edging up on Friday, the twenty second of August, as merchants balanced diplomatic developments with broader {economic} uncertainty.
Tokyo’s Nikkei closed at 42,633.29, up 0.1 p.c. The Hang Seng in Hong Kong completed 0.9 p.c greater at 25,339.14, whereas the Shanghai Composite climbed 1.5 p.c to three,825.76. London’s FTSE 100 slipped 0.1 p.c to 9,300.77, and New York’s Dow ended down 0.3 p.c at 44,785.50. On currencies, the euro weakened to $1.1592 from $1.1604, the pound dipped to $1.3410 from $1.3412, whereas the greenback strengthened to 148.60 yen from 148.37 yen. The euro eased to 86.45 pence from 86.52 pence. Oil costs rose barely, with West Texas Intermediate at $63.66 a barrel and Brent North Sea crude at $67.78.
