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The US stocks finished Friday lower. The Dow Jones (US30) Index fell by 0.20% for the day and 0.13% for the week. The S&P 500 (US500) dropped 0.64% for the day and rose 0.04% for the week. The tech-heavy Nasdaq (US100) closed down 1.22% for the day and 0.17% for the week. The Core Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s preferred inflation gauge, increased 2.9% year-over-year in July, matching expectations but marking its fastest pace since February. Technology and AI-related stocks pressured the market: Nvidia fell by 3.4% and Dell plummeted by 8.9% amid competition and rising costs for AI products. Alibaba surged 12.9% on strong cloud results, while Caterpillar (-3.6%) and Marvell (-18.6%) declined on tariff and earnings concerns. The US stock market will be closed on Monday, September 1, for the Labor Day holiday.

The Canadian dollar traded near 1.38 per US dollar after data on Canada’s second-quarter economic growth significantly undermined recovery assumptions and raised the risk of a Bank of Canada policy easing. Statistics Canada reported that real GDP in Q2 fell by 0.4% from the previous quarter, as exports contracted by 7.5% due to the impact of US tariffs. The growth gap with the US widened after the BEA’s second estimate showed US Q2 GDP at 3.3% year-over-year, which amplified expectations that the Canadian rate would have to fall sooner/further compared to the Fed and diminished support for the Canadian dollar, even amid a mixed Dollar Index following the PCE data.

European stock markets were mostly lower on Friday. Germany’s DAX (DE40) fell by 0.57% for the day (-1.36% for the week), France’s CAC 40 (FR40) closed down 0.76% (-3.01% for the week), Spain’s IBEX35 (ES35) dropped 0.90% (-2.51% for the week), and the UK’s FTSE 100 (UK100) closed down 0.32% (-1.31% for the week). The DAX in Frankfurt hit its lowest level since August 5, extending losses for a fifth consecutive session. Investors turned more cautious ahead of the weekend, considering political instability in France and rising geopolitical tensions from clashes in Gaza and Ukraine. Meanwhile, inflation data in Europe pointed to limited price pressures. Domestically, Germany’s inflation rate rose to 2.2% in August from 2.0% in July, exceeding market expectations of 2.1% but remaining near the ECB’s 2% target.

Silver surpassed $39.5 per ounce, reaching its highest level since September 2011, as traders bet on a Fed rate cut and weighed high industrial demand. The US data showed that core PCE inflation rose to 2.9% year-over-year in July, its fastest pace since February, and consumer spending jumped the most in four months, signaling a strengthening economy. The data maintained expectations for a September rate cut, with Fed Chair Waller supporting a 25 basis point cut and further easing in the coming months. Markets still expect two rate cuts this year, despite volatile inflation. Industrially, silver demand was supported by China’s solar energy boom, with solar cell exports growing more than 70% in the first half of the year, led by strong demand from India.

WTI crude oil prices fell by 0.9% to reach $64 per barrel on Friday as traders factored in weakening US demand. Attention is also on the upcoming OPEC+ meeting, as the group’s accelerated output increase boosts the global supply expectations. However, this supply increase has not fully reached the US market yet, where the summer driving season is ending, fueling concerns about demand.

Asian markets were mostly down last week. Japan’s Nikkei 225 (JP225) fell by 0.26%, China’s FTSE China A50 (CHA50) rose by 1.56%, Hong Kong’s Hang Seng (HK50) dropped 2.07%, and Australia’s ASX 200 (AU200) showed a negative result of 0.79%.

The official China Manufacturing PMI for August 2025 rose to 49.4 from July’s three-month low of 49.3, marking the fifth consecutive month of declining factory activity and falling short of market estimates of 49.5. Employment levels remained low (47.9 vs. 48.0) due to job uncertainty. On the price front, input costs reached a high since October 2024, while the decline in output prices eased. China’s official Non-Manufacturing PMI for August 2025 increased to 50.3 from July’s eight-month low of 50.1, matching market expectations and signaling moderate growth in service sector activity. The rise occurred amid improved sentiment, helped by a 90-day extension of the US-China tariff truce, which maintained 30% tariffs on Chinese exports to the US and 10% on US goods to China. Looking ahead, business confidence rose to a five-month high (56.2 vs. 55.8), fueled by hopes for policy support and trade stability.

• S&P 500 (US500) 6,460.26 −41.60 (−0.64%)
• Dow Jones (US30) 45,544.88 −92.02 (−0.20%)
• DAX (DE40) 23,902.21 −137.71 (−0.57%)
• FTSE 100 (UK100) 9,187.34 −29.48 (−0.32%)
• USD Index 97.86 +0.04 (+0.04%)
   

News feed for: 2025.09.01

• Australia Manufacturing PMI (m/m) at 02:00 (GMT+3);
• Japan Manufacturing PMI (m/m) at 02:30 (GMT+3);
• China Caxin Manufacturing PMI (m/m) at 04:45 (GMT+3);
• Switzerland Manufacturing PMI (m/m) at 10:30 (GMT+3);
• German Manufacturing PMI (m/m) at 10:55 (GMT+3);
• Eurozone Manufacturing PMI (m/m) at 11:00 (GMT+3);
• UK Manufacturing PMI (m/m) at 11:30 (GMT+3);
• Eurozone Unemployment Rate (m/m) at 12:00 (GMT+3);
• Mexico Manufacturing PMI (m/m) at 18:00 (GMT+3).

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