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The US stocks were not traded yesterday due to the bank holiday (Labor Day).

The Mexico Manufacturing PMI rose to 50.2 in August 2025, up from 49.1 in July. This was the first reading above the 50.0 threshold in 14 months, indicating an improvement in factory activity. On the other hand, business sentiment has significantly worsened compared to July, with companies becoming more cautious about their one-year outlook, despite some respondents expecting production volumes to grow.

European equity markets were primarily up on Monday. The German DAX (DE40) rose by 0.57%, the French CAC 40 (FR40) closed up 0.05%, the Spanish IBEX35 (ES35) gained 0.02%, and the UK’s FTSE 100 (UK100) closed up 0.10%. On the first trading day of September, the DAX closed higher, ending a five-day losing streak, helped by defense and pharmaceutical stocks. Traders assessed a series of PMI indices and anticipated key economic releases this week, with Eurozone inflation data and the US Non-Farm Payrolls report in focus. 

Domestically in Germany, the final manufacturing PMI came in at 49.8 in August, up from 49.1 in July and slightly below the flash estimate of 49.9, marking the best reading since mid-2022. Defense stocks were among the top gainers: Renk climbed 6.8%, Hensoldt added 5%, and Rheinmetall jumped 3.5% after the UK secured a £10 billion warship deal with Norway, the largest naval export in history. The stock rally was further boosted by comments from EU President von der Leyen about deploying troops to Ukraine as part of future security commitments.

On Tuesday, silver (XAG/USD) traded at around $40.7 per ounce (a 14-year high) after rising more than 2% in the previous session. Markets are pricing in a nearly 90% probability of a 25 basis point cut later this month. San Francisco Fed President Mary Daly stated on Friday that the Central Bank is prepared to ease policy given risks to the labor market, while suggesting that tariff-driven inflation might be temporary. Demand for safe-haven assets also supported precious metals amid concerns about the Fed’s independence and renewed uncertainty tied to President Donald Trump’s tariffs. In the industrial sector, demand was supported by China’s solar energy boom, with solar panel exports growing by over 70% in the first half of the year, driven mainly by strong shipments to India.

WTI crude oil prices rose above $64 per barrel on Monday, recovering from earlier losses amid concerns about supply disruptions caused by the ongoing conflict between Russia and Ukraine. Ukrainian President Volodymyr Zelenskyy promised on Sunday to expand strikes deeper into Russian territory following drone attacks on Ukraine’s energy facilities. Traders are also assessing whether India will yield to US pressure and halt purchases of Russian oil after Washington imposed secondary tariffs against Delhi last week. Investors are also awaiting this week’s OPEC+ meeting, as the group’s accelerated production increases are raising the global supply outlook.

In early September, the US natural gas (XNG/USD) prices climbed above the $3 per MMBtu mark, continuing a rally from a nine-month low of $2.73 on August 20, amid expectations of reduced domestic supply. New data showed that Russia’s LNG exports dropped by more than 6% year-on-year through August, which is increasing the share of US LNG in global trade as European and Asian partners source energy elsewhere. Accordingly, US gas consumers face higher competition for smaller domestic stockpiles. According to the latest data, gas storage inventories remain tight, with EIA data showing a 3.4% year-on-year decrease.

Asian markets were mostly down yesterday. The Japanese Nikkei 225 (JP225) fell by 1.24%, the Chinese FTSE China A50 (CHA50) declined by 0.41%, Hong Kong’s Hang Seng (HK50) gained 2.15%, and the Australian ASX 200 (AU200) posted a negative result of 0.51%.

On Tuesday, the New Zealand dollar fell to around $0.589. Sentiment worsened due to uncertainty surrounding US trade policy, as recent court rulings heightened concerns and caution regarding export-dependent currencies. Domestically, attention is focused on the upcoming appointment of a new RBNZ head, with Prime Minister Christopher Luxon indicating that a decision could be made within weeks. At the same time, markets continue to assess the likelihood of further monetary policy easing after the Central Bank’s recent rate cut and its signal that additional measures may be needed to protect the economy from global and domestic headwinds.

• S&P 500 (US500) 6,460.26 0 (0%)
• Dow Jones (US30) 45,544.88 0 (0%)
• DAX (DE40) 24,037.33 +135.12 (+0.57%)
• FTSE 100 (UK100) 9,196.34 +9.00 (+0.10%)
• USD Index 97.67 -0.11 (-0.11%)
   

News feed for: 2025.09.02

• Switzerland Retail Sales (m/m) at 09:30 (GMT+3);
• Eurozone Consumer Price Index (m/m) at 12:00 (GMT+3);
• Canada Manufacturing PMI (m/m) at 16:30 (GMT+3);
• US ISM Manufacturing PMI (m/m) at 17:00 (GMT+3).

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