World shares are mixed after Wall Street trims losses
[August 21, 2025] By
TERESA CEROJANO
MANILA, Philippines (AP) — European shares were lower Thursday after a
mixed trading session in Asia, as investors awaited fresh signals from
the Federal Reserve about U.S. interest rates.
Fed chair Jerome Powell was due to speak on Friday to an annual
conference of central bankers in Jackson Hole, Wyoming.
In early European trading, Germany’s DAX fell 0.2% to 24,236.16.
Britain’s FTSE 100 gave up 0.2% to 9,269.31, while the CAC 40 in Paris
shed 0.5% to 7,931.26.
The future for the S&P 500 edged 0.1% lower, while that for the Dow
Jones Industrial Average slid 0.3%.
The Fed has kept its main interest rate steady this year, concerned that
President Donald Trump’s tariff hikes could push inflation higher. But a
surprisingly weak report on job growth across the U.S. may be
superseding that.
Still, minutes from the Fed’s July 29-30 meeting released Wednesday
showed most Fed officials felt the threat of higher inflation was a
greater concern than the potential for job losses, leading the central
bank to keep its key rate unchanged.
In Asian trading, Tokyo's Nikkei 225 fell 0.6% to 42,610.17 after a
survey showed Japan’s factory activity remained in contraction for the
second month in August. The S&P Global flash Japan Manufacturing
Purchasing Managers’ Index (PMI) increased to 49.9 in August from 48.9
in July, just below the 50 level marking the cutoff between growth and
decline.
Regional manufacturers have been feeling pressure from Trump's higher
tariffs on exports to the United States.
Hong Kong’s Hang Seng index edged 0.2% lower to 25,104.61, while the
Shanghai composite index rose 0.1% to 3,771.10.
“Asian markets walked into Thursday like a card room still heavy with
last night’s smoke — muted, watchful, waiting for the next cue out of
Jackson Hole,” Stephen Innes of SPI Asset Management said in a
commentary.
The exception was Australia, where the S&P/ASX 200 index added 1.1% to
9,019.10, surpassing the 9,000 level for the first time in a rally
driven by strong economic data and corporate earnings.
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Dealers talk near screens showing the Korea Composite Stock Price
Index (KOSPI), left, and the foreign exchange rate between U.S.
dollar and South Korean won at a dealing room of Hana Bank in Seoul,
South Korea, Wednesday, Aug. 20, 2025. (AP Photo/Lee Jin-man)
In South Korea, the Kospi added 0.4% to 3,141.74 after shedding some its
morning gains.
Taiwan’s TAIEX climbed 1.4%, while India’s Sensex added 0.3%.
On Wednesday, the S&P 500 dipped 0.2% after trimming a 1.1% loss earlier
in the day. It is still near its all-time high set last week.
The Dow Jones Industrial Average added less than 0.1% and the Nasdaq
composite fell 0.7%.
The day’s action centered again around stocks caught up in the mania
around artificial-intelligence technology.
Nvidia, whose chips are powering much of the world’s move into AI, sank
as much as 3.9% during the morning and was on track to be the heaviest
weight on Wall Street following its 3.5% fall on Tuesday.
But it clawed back nearly all of Wednesday’s drop and finished with a
dip of just 0.1%. As it pared its loss, so did broad market indexes
because Nvidia is Wall Street’s most influential stock by being its most
valuable.
Palantir Technologies, another AI darling, fell 1.1% to add to its 9.4%
loss from the day before, but it had been down as much as 9.8% Wednesday
morning.
In other dealings Thursday, US. benchmark crude gained 66 cents to
$63.37 per barrel. Brent crude, the international standard added 65
cents to $67.49 per barrel.
The U.S. dollar rose to 147.74 Japanese yen, from 147.29 yen. The euro
edged slightly higher to $1.1654 from $1.1651.
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