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Global markets end mixed amid inflation worries and cautious optimism

2025/10/11/09:09
in Financial insights
Reading Time: 2 mins read
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Most read articles about finance today

Global equity markets closed Friday on a mixed note as investors weighed new inflation data from the United States and Europe against signs of continued economic resilience. While Wall Street slipped modestly, European and Asian bourses showed a steadier performance, reflecting regional differences in monetary and fiscal outlooks.

Wall Street retreats after inflation data
In the United States, the major indices ended lower as the latest Consumer Price Index figures pointed to persistent inflationary pressures. The S&P 500 fell 0.4%, the Dow Jones Industrial Average lost 0.3%, and the Nasdaq Composite declined by 0.6%. The report dampened hopes for an early interest rate cut by the Federal Reserve, reinforcing expectations that monetary policy will remain tight for longer. Treasury yields edged higher, with the 10-year note closing near 4.6%, while oil prices steadied after a week of volatility.

Europe steadies on industrial resilience
Across Europe, major indices managed to hold their ground despite mixed earnings updates. The STOXX 600 closed nearly flat, supported by gains in industrial and energy shares. London’s FTSE 100 rose 0.2%, aided by a stronger pound and positive construction data, while Germany’s DAX slipped 0.1% as exporters continued to face pressure from weak Chinese demand. The European Central Bank’s recent signals of a possible rate pause helped restore some investor confidence after weeks of uncertainty.

Asia-Pacific mixed as China shows tentative recovery signs
Asian markets ended the week unevenly, reflecting cautious optimism over China’s latest economic indicators. The Shanghai Composite gained 0.4% following improved manufacturing data and signs of policy support from Beijing, while Japan’s Nikkei 225 edged down 0.3% as the yen strengthened. In Hong Kong, the Hang Seng Index rose 0.6%, boosted by technology stocks recovering from recent lows.

Commodities and currencies are stable into the weekend
In commodities, Brent crude settled just below USD 90 per barrel, while gold remained near USD 2,350 an ounce, supported by geopolitical uncertainty and steady demand from central banks. Currency markets were relatively stable, with the US dollar index hovering around 105 and the euro trading at USD 1.09.

Outlook heading into the new week
Investors now turn their attention to next week’s corporate earnings season and further macroeconomic releases that could clarify the path for global interest rates. Market sentiment remains cautiously balanced between persistent inflation concerns and signs of slowing but resilient growth across major economies.

Newshub Editorial in Global – 11 October 2025

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