Global markets closed with mixed signals yesterday, as investors balanced upbeat earnings from major US tech firms against persistent concerns over economic growth in Europe and Asia. While Wall Street edged higher on strong corporate results, sentiment in London and across the eurozone remained cautious amid weak industrial data and geopolitical uncertainties.
Asia wavers as Chinese stimulus fails to reassure
Asian equities ended Thursday on a tepid note, with most major indices slipping despite a new round of Chinese government measures aimed at stabilising the property sector. The Hang Seng Index in Hong Kong fell 0.7%, dragged by real estate and financials, while the Shanghai Composite dropped 0.3%. In Tokyo, the Nikkei 225 dipped 0.2% as investors locked in profits following a strong week. South Korea’s KOSPI edged up 0.1%, bolstered by semiconductor shares, but gains were limited by declining exports data.
Europe declines on weak manufacturing and earnings misses
Markets across Europe posted modest losses, led by declines in industrial and consumer sectors. The pan-European Stoxx 600 slipped 0.4%, as eurozone manufacturing PMI data showed continued contraction, especially in Germany and France. Frankfurt’s DAX fell 0.5%, weighed by disappointing earnings from BASF and Continental. In Paris, the CAC 40 lost 0.3%, while Milan’s FTSE MIB dropped 0.6% amid rising bond yields. Investors remained wary of ECB policy direction as inflation data came in higher than expected in several member states.
London slides on mining losses and retail slowdown
The FTSE 100 in London closed down 0.5%, hit by declines in mining and consumer discretionary shares. Rio Tinto and Anglo American both lost over 2%, reflecting lower commodity prices and softening demand from China. Retailers were also under pressure after UK consumer confidence fell for the third straight month. The pound held steady against the dollar but weakened slightly against the euro, as investors digested new data pointing to a slowdown in the British services sector.
Wall Street buoyed by Big Tech and economic resilience
In the United States, the S&P 500 rose 0.3% to close at another record high, driven by strong results from Alphabet and Microsoft. The Nasdaq gained 0.6%, while the Dow Jones Industrial Average edged up 0.1%. Despite mixed macroeconomic signals, including soft durable goods orders, markets remained supported by stable jobless claims and expectations of a pause in Federal Reserve rate hikes. Treasury yields held firm, while oil prices dipped slightly amid inventory build-up in the US.
Investors eye central bank signals and earnings season peak
As the week draws to a close, global investors are watching for further signals from central banks, particularly the ECB and Federal Reserve, regarding the future pace of monetary tightening. Earnings season continues to shape sentiment, with more than half of S&P 500 companies reporting by Friday. Markets are expected to remain volatile as inflation, rates, and geopolitics continue to drive short-term positioning.
REFH – Newshub, 26 July 2025
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