20/08/2025 Daily Reports
• Asian markets: Asian shares slipped, following a tech-led selloff on Wall Street.
• U.S. dollar: The dollar steadied ahead of the Jackson Hole symposium this week.
• Oil prices: Oil recovered as traders weighed Ukraine peace talks and potential easing of Russian crude sanctions.
• Futures performance: European and U.S. futures mirrored weakness — Eurostoxx -0.55%, DAX -0.5%, S&P 500 -0.2%, Nasdaq -0.34%.
• Tech sector: Nvidia & AMD agreed to hand over 15% of China revenues to the U.S. government; reports suggest Washington may take a 10% stake in Intel.
• Geopolitics: Trump, Zelenskyy, and European allies met on Ukraine — talks yielded little, but Trump hinted at U.S. air support for Kyiv (excluding ground troops).
• Fed watch: Investors now focus on Jackson Hole (Aug 21–23), with Fed Chair Jerome Powell expected to clarify the U.S. rate outlook.
• Market outlook: Markets still expect a rate cut next month, though mixed inflation data complicates the picture.
• What’s Next?
Markets are balancing between geopolitics, government intervention in tech, and Fed policy uncertainty. While short-term volatility seems inevitable, Jackson Hole could be the catalyst that reshapes expectations for the rest of 2025.
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Global Stocks Under Pressure as Trump Pushes Deeper Into Tech
European markets looked set for a weak start on Wednesday, following a selloff on Wall Street that spilled over into Asia, with technology shares leading the losses. Analysts pointed to stretched valuations in major U.S. tech firms and mounting concerns over President Donald Trump’s expanding influence on the sector as key drivers of the downturn.
According to sources, U.S. Commerce Secretary Howard Lutnick is exploring a plan for Washington to take equity stakes in Intel and other chipmakers in exchange for subsidies under the CHIPS Act, which was originally designed to encourage domestic factory construction. This comes on the heels of a controversial deal with Nvidia, where the government allowed sales of its H20 chips to China in return for 15% of revenues from those transactions. Critics argue such interventions risk eroding corporate margins, reshaping demand, and leaving taxpayers exposed if the government’s bets on private companies turn sour.
