World Capital Markets Review 17.09.25

world capital markets

World markets closed mixed on Wednesday, as investors weighed central bank actions, trade developments, and geopolitical dynamics. From Asia’s cautious optimism on U.S.–China relations to Europe’s tempered inflation data, and from the Fed’s rate cut in the U.S. to Saudi Arabia’s market gains, sentiment remained uneven across regions.

ASIA/PACIFIC


Asian equities offered no clear direction. China’s Shanghai Composite gained 0.4% after Washington and Beijing reached a framework deal for U.S.-controlled ownership of TikTok, with Presidents Trump and Xi expected to finalize terms later this week. Hong Kong’s Hang Seng surged 1.8% on strong risk appetite. Japan’s Nikkei 225 edged up 0.3%, though trade data showed the deficit widening sharply in August. The Bank of Japan meets Friday but is expected to maintain policy amid domestic political uncertainty and U.S. tariff effects. In Australia, the S&P/ASX 200 slid 0.7% as weakness in iron ore and gold pressured miners.

EUROPE


The pan-European Stoxx 600 dipped 0.03%, reflecting fragmented performance across the region. London’s FTSE 100 and Frankfurt’s DAX eked out small gains, while Paris’ CAC 40 fell 0.4%. Southern and Eastern European markets, including Greece, Spain, and Poland, closed softer, while Denmark, the Netherlands, and Russia advanced modestly. Inflation data eased slightly, with Eurozone CPI at 2% in August, revised down from 2.1%. U.K. inflation held steady at 3.8% ahead of the Bank of England’s policy decision on Thursday. U.S. President Trump’s visit to London added a geopolitical layer to sentiment.

AMERICAS  


Wall Street ended mixed following the Federal Reserve’s widely expected 25-basis-point rate cut. Chair Jerome Powell characterized it as a “risk management cut,” stressing flexibility in future decisions. The Dow rose 0.6%, but the S&P 500 slipped 0.1% and the Nasdaq shed 0.3%, reflecting investor caution over the labor market’s slowdown.

AFRICA


In Africa, South Africa’s FTSE/JSE All Share gained 0.46% and Nigeria’s NGX rose 0.35%. Egypt’s benchmark climbed 0.4%, led by banking stocks. In other news, Chevron, listed in New York, signed an agreement with state-owned Israel Natural Gas Lines to begin construction of the Nitzana pipeline, which will carry natural gas from the Leviathan field to Egypt.

MIDDLE EAST


Middle Eastern equities were mixed. Saudi Arabia’s Tadawul rose 1.3% to 10,650, buoyed by broad sector strength and news it was added to J.P. Morgan’s EM Bond Index watchlist. Qatar advanced 0.9%, while Abu Dhabi slipped 0.3% and Dubai fell 0.1% on real estate weakness. Bahrain declined 0.4%, while Oman edged up 0.3% and Kuwait was flat.