Photo by Michelle Spollen on Unsplash
 

By the end of Tuesday, the Dow Jones Index (US30) fell by 0.27%. The S&P 500 Index (US500) declined by 0.13%. The Nasdaq (US100) Technology Index closed down 0.07%. US stocks edged lower on Tuesday as investors took profits ahead of the highly anticipated September Federal Reserve meeting. Traders widely expect the Fed to cut the rate by 25 basis points on Wednesday, which would be the first cut since December. Meanwhile, positive retail sales data for August signaled resilient consumer spending despite stagnant inflation and a softening labor market. Investors were also watching developments between the US and China. Progress on trade and a new TikTok framework boosted sentiment and contributed to a rise in Oracle shares.

The Canadian dollar strengthened to 1.38 per US dollar in September, reaching monthly highs after domestic data reinforced expectations that the Bank of Canada would take a cautious approach to rate cuts. The core Consumer Price Index in August rose by 1.9% year-on-year – below the consensus of 2.0%. However, key metrics, specifically the average and median values, remain near 3.0%, indicating persistent underlying inflation after excluding volatile goods. These readings, along with signs of economic resilience, suggest that the Bank of Canada may keep policy restrictive for longer and decrease the likelihood of a rapid easing cycle; markets now expect only a modest 25 basis point rate cut at the next meeting.

European stock markets were mostly lower on Tuesday. The German DAX (DE40) fell by 1.77%, the French CAC 40 (FR40) closed down 1.00%, the Spanish IBEX35 (ES35) declined by 1.51%, and the British FTSE 100 (UK100) closed negatively on Tuesday at 0.88%. On Tuesday, European stocks closed sharply lower, pressured by aggressive losses in the financial sector. Traders were cautious ahead of key monetary policy decisions from the Fed and the Bank of England this week, as well as trade talks between China and the US, while US President Trump begins his visit to the UK today. On the data front, the ZEW Economic Sentiment Index for Germany surprisingly rose, while UK employment data continued to signal a slowdown in the labor market.

WTI crude oil prices rose more than 1.5% on Tuesday to $64.5 per barrel, continuing to climb on risks related to Russian supply. Ukraine launched another strike on oil refineries as part of a broader campaign targeting Russian energy infrastructure, including the Primorsk export hub. Goldman Sachs estimates that recent attacks have taken about 300,000 barrels per day of Russian refining capacity offline in August and early September. Reuters also reported that pipeline operators are restricting oil storage for producers, which is exacerbating the problem. Meanwhile, the EU is considering new sanctions, including against firms in India and China that facilitate Moscow’s oil trade.

The US natural gas prices rose to $3/MMBtu, the highest level in a week, amid falling production. The average output in September was 107.4 billion cubic feet per day, down from August’s record high of 108.3. However, inventory growth was limited by weak demand prognoses, ample storage capacity, and stagnant LNG exports. Gas inventories are about 6% above the seasonal average, and injections are expected to continue.

Asian markets traded mixed yesterday. The Japanese Nikkei 225 (JP225) rose by 0.30%, the Chinese FTSE China A50 (CHA50) fell by 0.50%, the Hong Kong Hang Seng (HK50) declined by 0.03%, and the Australian ASX 200 (AU200) showed a positive result of 0.28%.

On Wednesday, the New Zealand dollar fell to $0.597, ending a two-day rally as traders showed caution ahead of Thursday’s GDP data release. The economy is expected to have contracted by 0.3% in the June quarter, which would reinforce the Reserve Bank of New Zealand’s dovish outlook. Markets now expect a 25 basis point rate cut at the October meeting, with rates expected to fall to 2.50% by early 2026.

The People’s Bank of China has released a draft rule aimed at easing restrictions on gold imports, proposing to expand the use of “reusable permits,” extend their validity from six to nine months, remove restrictions on use, and allow more ports to clear bullion. These measures also apply to exports, though permits are still rarely issued due to strict capital controls and the People’s Bank of China’s drive to build reserves. The move comes as China continues to buy gold for the ninth consecutive month, increasing its reserves to approximately 73.96 million troy ounces in August 2025.

• S&P 500 (US500) 6,606.76 −8.52 (−0.13%)
• Dow Jones (US30) 45,757.90 −125.55 (−0.27%)
• DAX (DE40) 23,329.24 −419.62 (−1.77%)
• FTSE 100 (UK100) 9,195.66 −81.37 (−0.88%)
• USD Index 96.65 −0.65 (−0.67%)
   

News feed for: 2025.09.17

• Japan Trade Balance (m/m) at 02:50 (GMT+3);
• UK Consumer Price Index (m/m) at 09:00 (GMT+3);
• UK Producer Price Index (m/m) at 09:00 (GMT+3);
• Eurozone ECB President Lagarde Speaks (m/m) at 10:30 (GMT+3);
• Eurozone Consumer Price Index (m/m) at 12:00 (GMT+3);
• US Building Permits (m/m) at 15:30 (GMT+3);
• Canada BoC Interest Rate Decision at 16:45 (GMT+3);
• Canada BoC Rate Statement at 16:45 (GMT+3);
• Canada BoC Press Conference at 17:30 (GMT+3);
• US Crude Oil Reserves (w/w) at 17:30 (GMT+3);
• US Fed Interest Rate Decision at 21:00 (GMT+3);
• US FOMC Statement at 21:00 (GMT+3);
• US FOMC Economic Projections at 21:00 (GMT+3);
• US FOMC Press Conference at 21:30 (GMT+3).

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