Tuesday Afternoon Coffee - Markets Update - 2 Sep 2025 - Debt Worries Slam Stocks, Pound and Yen Sink as Gold Shines

The Trade Academy Team
Sep 1
2 min read

Markets Update: Global markets fell sharply Tuesday as fiscal concerns rattled investors, sending European long-dated bond yields to multi-year highs, U.S. stocks lower, and gold soaring to another record. Meanwhile, the dollar strengthened against major peers, while the pound and yen slid on political and policy turbulence.

Global Markets Roundup: 2 Sep 2025

Wall Street Slides, Factories Struggle

U.S. equities dropped as manufacturing contracted for a sixth straight month in August, underscoring the strain from import tariffs. While an AI-driven investment boom lent support to select industries, broad sentiment remained fragile.

Dow Jones Industrial Average: -0.75%
S&P 500: -1.0%
Nasdaq Composite: -1.23%

Adding to the tension, a divided U.S. appeals court ruled Friday that most of President Donald Trump’s tariffs are illegal but allowed them to remain until October 14, pending a potential Supreme Court appeal.

European Bond Yields Surge

Debt concerns pushed long-dated European bond yields to levels not seen in decades.

French 30-year OAT yield: ~4.5%, a 16-year high
German 30-year yield: 3.42%, a 14-year high
UK 30-year gilt yield: highest since 1998

The U.S. bond market also saw renewed selling, with the 30-year Treasury yield up 5.9 bps to 4.97%, its highest since July, while the 10-year yield rose 5.7 bps to 4.28%.

Political risks added to the pressure: French Prime Minister Francois Bayrou faces a confidence vote over spending cuts, while UK Chancellor Rachel Reeves is expected to raise taxes in her autumn budget to meet fiscal targets.

Pound and Yen Under Pressure

Currency markets were volatile as the dollar regained safe-haven appeal.

Sterling (GBPUSD): -1.2% to $1.33, weakest in nearly a month against the euro
Yen (USDJPY): +0.84% to 148.4, pressured by dovish BOJ remarks and the resignation of a senior aide to PM Shigeru Ishiba
Euro (EURUSD): -0.64% to $1.163

Gold Surges to Record, Oil Gains on Sanctions

Safe-haven demand propelled gold to an all-time high of $3,529/oz, while silver reached a 14-year peak.

Oil advanced as U.S. sanctions targeted Iran’s oil revenues, ahead of Sunday’s OPEC+ meeting, where producers are expected to keep voluntary supply cuts in place.

Brent Crude: +1.5% to $69.18/barrel

Grains Mixed on Supply Outlook

Agricultural futures were uneven as global supply weighed on prices.

Wheat (Dec): -1.1% to $5.28¼/bushel
Soybeans (Nov): -1.3% to $10.41/bushel
Corn (Dec): +0.7% to $4.23/bushel

Outlook

Markets face a data-heavy week culminating in Friday’s U.S. nonfarm payrolls report. With investors pricing in an 89% chance of a 25 bps Fed rate cut this month, labor market readings will be pivotal.

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