Finance The Week That Was

Global markets diverged sharply in late August 2025. US and Australian equities rose on hopes of a Fed rate cut, while new US tariffs had an impact on Indian markets and the rupee. Mainland China surged on liquidity, contrasting with Hong Kong’s earnings-led slump. Europe faced inflation and political jitters, setting a volatile September.

The week ending August 22, 2025, saw a sharp reversal, driven by Fed Chair Powell’s dovish Jackson Hole speech. Signalling potential rate cuts, it sparked a fierce global rally, pushing the Dow to a record high. However, local economic conditions led to significant market divergences, notably in Germany and Japan.

Global financial markets navigated a landscape of powerful and often contradictory forces during the week ending August 15, 2025. Investor sentiment was caught in a pronounced tug-of-war between palpable optimism and creeping macroeconomic anxiety. On one side, a high-stakes diplomatic summit in Alaska, aimed at brokering an end to the war in Ukraine, fueled hopes for geopolitical de-escalation, lifting equities, particularly in Europe. This optimism was reinforced by continued monetary easing from key central banks in the United Kingdom and Australia, which cut interest rates to shore up their respective economies.

Global markets (week ending August 8, 2025) were pulled between US tariff fears and rate cut hopes. Weak US jobs data solidified expectations for Federal Reserve easing, sparking a “bad news is good news” rally in US tech. However, India slid down due to new tariffs, showcasing divergent global impacts.

Global markets ended a multi-week rally, tumbling after new U.S. tariffs and a shockingly weak American jobs report. The dual shocks reignited fears of a global trade war and economic slowdown, triggering the worst weekly performance for U.S. stocks in months and sending shockwaves across Europe and Asia.

The global financial markets presented a story of stark divergence in the week ending July 25, 2025. In the United States, a powerful, AI-fueled rally propelled technology-centric indices to unprecedented heights, with the S&P 500 and Nasdaq Composite posting a string of record closes. This buoyant optimism, however, was largely contained within U.S. borders. Across Europe, Asia, and Oceania, a more cautious and often negative sentiment prevailed, as investors grappled with the combined pressures of unresolved trade disputes, mixed corporate earnings, and a “wait-and-see” approach from major central banks.