Monday Afternoon Coffee - Markets Update - 1 Sep 2025 - Europe Stocks Steady, Bonds Struggle Ahead of U.S. Data; Alibaba Surges, Gold Climbs

The Trade Academy Team
Sep 1
3 min read

Markets Update: Global markets moved cautiously on Monday as a U.S. holiday left investors to focus on European bonds, Chinese tech gains, and political turbulence in France, while anticipation built for a packed week of U.S. economic data.

Global Markets Roundup: 1 September 2025

Europe Holds Gains, Alibaba Jumps in Hong Kong

The STOXX 600 inched up 0.1% after early optimism from manufacturing data faded. The real action was in Asia, where Alibaba’s Hong Kong shares soared 18.5% following a sharp jump in cloud revenue driven by AI demand.

U.S. futures traded slightly higher, with the week ahead set to be dominated by American economic releases, capped by Friday’s closely watched August payrolls report. Forecasts point to a 75,000 job gain, though projections vary widely from flat hiring to a 110,000 increase, with unemployment expected to rise to 4.3%.

Wall Street, hovering near record highs, has been buoyed by expectations of rate cuts as soon as September. The timing could prove critical, with September historically the weakest month for the S&P 500 over the past three decades.

Currencies

The dollar decreased by 0.15% to 97.71 DXY, after reaching 97.534, its lowest point since July 28. It recorded a monthly decline of 2.2% on Friday. The euro EURUSD increased by 0.22% to $1.1707, while the British pound GBPUSD rose by 0.25% to $1.3537. U.S. markets were closed on Monday in observance of the Labor Day holiday.

The dollar gained 0.14% to 147.26 against the yen USDJPY, following a 2.5% decline in August. The onshore yuan USDCNY increased by 0.1% to 7.1374, ending a six-day losing streak. It fell to 7.1260 on Friday, marking its lowest level since the presidential election victory of Trump in early November 2024.

Tariffs and Fed Tensions Add Uncertainty

Trade policy also remained a wildcard after a U.S. Court of Appeals ruled much of President Donald Trump’s tariff regime unlawful but allowed duties to remain in effect until at least mid-October, pending a Supreme Court appeal. The ruling clouds ongoing trade negotiations, with talks stalling with Japan over rice and with South Korea over broader terms.

Meanwhile, political friction between Trump and the Federal Reserve intensified as Fed Governor Lisa Cook prepared to challenge her dismissal in court Tuesday.

French Politics in Focus as Bonds Sell Off

In Europe, investors turned attention to France, where Prime Minister Francois Bayrou began talks to shore up support ahead of a no-confidence vote next week. Opposition leaders insist the government will fall, raising the risk of fresh elections and market instability.

French bonds remain under scrutiny, with the spread between French and German 10-year yields steady at 79 basis points after last week’s sharp widening.

German yields extended their climb, with 30-year bonds hitting a 14-year high at 3.38% and 10-year yields rising to 2.76%. With U.S. Treasuries closed for the holiday, the move pushed the euro higher, last up 0.25% at $1.1711.

Gold Nears $3,500, Oil Edges Higher

Gold benefited from the weaker dollar and rate-cut bets, climbing as much as 1.1% to $3,489.50 an ounce, its highest in four months, after rising 2.2% last week.

Oil prices inched higher, supported by a softer dollar and supply disruptions from Russia-Ukraine tensions, but capped by worries about rising output and U.S. tariffs. Brent crude added 1% to $68.20 a barrel.

In agriculture, wheat futures slipped toward $5.00 a bushel, pulling back from last week’s three-week high of $5.18 as favorable weather and strong harvests weighed on prices.

Outlook

With Wall Street reopening Tuesday, focus shifts firmly to the U.S., where jobs data and Fed policy will set the tone. Political risks in France and uncertainty over Trump’s trade agenda add further layers of volatility for global markets in September.

Looking forward refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.

General news - Information source from multiple newswires.

The article and the data is for general information use only, not advice!

The Trade Academy Team