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Thursday Afternoon Coffee - Markets Update - 21 Aug 2025 - Global Equities Retreat as Dollar Strengthens; Oil Rises Ahead of Jackson Hole
- The Trade Academy Team
- Aug 21, 2025
- 2 min read
Global equities slipped Thursday as investors grew cautious ahead of Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole symposium, while gold prices weakened under pressure from a firmer U.S. dollar.
Global Markets Roundup: 21 Aug 2025
The three-day gathering began Thursday, with traders looking to Powell’s remarks on Friday for clarity on the likelihood of a September rate cut. Treasury yields edged higher, and oil futures rose on signs of robust U.S. demand and geopolitical uncertainty.
Stocks Weaken as Fed Focus Intensifies
The MSCI World Equity Index (EURONEXT:IACWI) declined 0.38%, reflecting broad risk aversion. On Wall Street, all three major benchmarks retreated:
Dow Jones Industrial Average: -0.34% to 44,785.50
S&P 500: -0.40% to 6,370.17
Nasdaq Composite: -0.34% to 21,100.31
Weak quarterly results from Walmart (WMT) added to the downbeat tone, while technology shares remained under pressure amid concerns that heavy AI-related investments are failing to deliver near-term returns.
European equities were subdued, with the STOXX 600 (SXXP) finishing flat and regional markets mixed. The EU said it would push for recently agreed lower U.S. tariffs on its car exports to be applied retroactively.
In Asia, stocks had hovered near recent highs, and Australia’s benchmark index (XJO) touched a new record earlier in the day.
Treasury Yields Climb, Dollar Gains
The 10-year U.S. Treasury yield rose 3.2 basis points to 4.328%. Market pricing showed a 70.4% probability of a September rate cut, down from 83% the day before, according to LSEG data, as investors digested minutes from the Fed’s July meeting.
The U.S. dollar strengthened, with the Dollar Index DXY rising 0.43%. The euro EURUSD slipped 0.4% to $1.1604.
Gold Eases as Dollar Strengthens
Gold prices retreated after overnight gains. Spot gold fell 0.25% to $3,338.51, while U.S. gold futures settled 0.2% lower at $3,386.50.
Deutsche Bank noted that earlier buying was tied to renewed worries about central bank independence but added that the overall market impact was limited.
Oil Gains, Commodities Mixed
Crude prices advanced, supported by demand signals and uncertainty over Ukraine:
Brent (BRN1!): +1.24% to $67.67/barrel
WTI Crude (CL1!): +1.29% to $63.52/barrel
Grains were firmer after the USDA projected a larger-than-expected 2025 corn harvest, intensifying focus on the annual Pro Farmer crop tour:
Soybeans (ZS1!): +18¼¢ to $10.54¼/bushel
Corn (ZC1!): +6½¢ to $4.10½/bushel
Wheat (ZW1!): unchanged at $5.28¼/bushel, rebounding from contract lows
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team
