Asian and European markets closed mixed on Thursday, with investors cautious before central bank guidance from the Federal Reserve’s annual Jackson Hole symposium. Gains in India and South Korea contrasted with losses in Japan and the UK, while U.S. futures pointed lower ahead of the open.
Asian markets show divergence
In Asia, Tokyo’s Nikkei fell 0.6% as exporters were pressured by yen strength. South Korea’s KOSPI gained 0.9%, supported by technology shares, while Australia’s ASX reached a record high on the back of mining stocks. Chinese blue-chips made modest advances, but Hong Kong’s Hang Seng ended broadly flat. India extended its recent rally, with the Nifty50 crossing 25,000 and the Sensex surpassing 82,000, each marking a sixth consecutive session of gains.
London retreats from record
In Europe, London’s FTSE 100 slipped 0.2% after closing at an all-time high on Wednesday. Sentiment was weighed down by corporate earnings, most notably a steep decline of more than 40% in WH Smith shares after the retailer cut its profit forecast. Broader European markets traded cautiously as investors awaited signals from the U.S. Federal Reserve.
US futures point lower
Wall Street futures edged down in pre-market trading, with investors bracing for Federal Reserve Chair Jerome Powell’s keynote address in Jackson Hole. Market participants widely expect a 25-basis point rate cut next month, but remain focused on the Fed’s tone regarding inflation risks and future policy flexibility.
Currency and policy backdrop
The U.S. dollar held firm against major peers, supported by expectations of sustained monetary caution. Bond yields were steady across developed markets. The combination of rate-cut hopes and concerns over global growth has kept trading muted, with volumes lighter than average.
Outlook
Markets are likely to remain subdued until Powell delivers his remarks, which will set the tone for global risk appetite into September. Investors will look for clarity on how the Fed balances slowing inflation with risks to economic momentum, a dynamic that could drive equities and currencies in the coming weeks.
REFH – Newshub, 21 August 2025
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