Market Movers European Session – European Indices Down, EURUSD Down, Gold Up, US Futures Retreat

# Market Movers: European Session – European Indices Down, EUR/USD Down, Gold Up, US Futures Retreat

**Note**: This analysis is generated during the European market session, with European markets actively open. All economic event times are in US Eastern Time (New York time). Nikkei 225 is closed.

## Major News

**Market Overview**

As the European market session unfolds, major indices are experiencing downward pressure, with the DAX down 0.70% to 24,251.17, the EURO STOXX 50 declining 0.54% to 5,453.91, and the FTSE 100 slipping 0.13% to 9,177.15. In the U.S., futures are also reflecting cautious sentiment, with S&P 500 futures at 6,420.50 (-0.19%), Nasdaq futures at 23,403.00 (-0.28%), and Dow futures at 44,910.00 (-0.20%). The Nikkei 225 is closed, showing a notable decline of 1.51% in its last trading session at 42,888.55. The current market sentiment appears to be influenced by a mix of geopolitical tensions, corporate earnings reports, and ongoing trade policy discussions.

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**Market Reactions and Stock Movements**

European markets opened lower, reflecting a broader global trend as investor sentiment wavered. The declines were particularly pronounced in technology stocks, with SoftBank Group shares plunging over 9% amid a broader sell-off in Asian tech stocks that mirrored declines in their U.S. counterparts. Palantir Technologies also faced significant pressure, with its stock slumping 9% for the fifth consecutive day after reaching record highs.

In contrast, Pop Mart saw a remarkable turnaround, with shares rising 10% after reporting a near-400% surge in profits, driven by soaring global demand for its Labubu plush toys. This highlights the contrasting fortunes within the market, where certain sectors thrive while others struggle.

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**Geopolitical Factors and Tariffs**

Geopolitical dynamics continue to play a pivotal role in shaping market movements. Former President Donald Trump has expanded tariffs on steel and aluminum, now encompassing 407 additional product types. This move is part of his broader trade agenda aimed at reshaping U.S. trade relationships. Analysts suggest that while these tariffs may bolster domestic industries, they add complexity to international trade relations, particularly with key partners such as China and India.

Moreover, Trump’s trade policies appear to be influencing diplomatic relations between India and China, with recent developments indicating a tactical thaw rather than a fundamental shift. This evolving landscape adds layers of uncertainty for investors, particularly in sectors sensitive to international trade dynamics.

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**Corporate Earnings and Strategic Moves**

The corporate earnings landscape remains a focal point for market participants. Investors are awaiting crucial retail earnings reports, with attention on how companies will navigate rising inflation and changing consumer behavior. The recent uptick in UK inflation has led to a slight appreciation of the British pound, suggesting that currency fluctuations may also impact corporate earnings in the retail sector.

In the semiconductor space, discussions surrounding the CHIPS Act are gaining traction. U.S. Commerce Secretary’s consideration of converting government grants into equity stakes for chip manufacturers receiving CHIPS Act funding could reshape the competitive landscape. This move, while aimed at bolstering domestic production, raises questions about governance and long-term implications for companies like Intel.

Meanwhile, Tesla faces challenges as sales of its Cybertruck fall short of expectations, despite claims of high demand. This discrepancy raises concerns about the company’s ability to meet market expectations and could have ripple effects on its stock performance moving forward.

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**Current Market Overview**

In summary, the European markets are navigating a complex environment marked by geopolitical tensions, corporate earnings uncertainties, and evolving trade policies. With major indices reflecting downward trends, investors are adopting a cautious stance as they await further developments. The interplay between domestic policies, international relations, and corporate performance will likely continue to shape market sentiment in the near term.

As the session progresses, market participants will be closely monitoring retail earnings and any additional developments regarding tariffs and trade policies, which could provide further clarity on the trajectory of the markets. In this context, sectors such as technology and retail will remain in focus, as investors seek to identify opportunities amid the prevailing uncertainties.

## Performances

### US Futures

The following table shows the latest price and daily performance of US futures.

**Note**:
– Prices are in USD.
– Daily Change (%) is calculated as (Close – Previous Close) / Previous Close * 100.
– ‘N/A’ indicates data not available.

### European and Asian Indices

The following table shows the latest closing price and daily performance of major European and Asian indices.

**Note**:
– Prices are in local currency or points.
– Daily Change (%) is calculated as (Close – Previous Close) / Previous Close * 100.
– ‘N/A’ indicates data not available.
– Nikkei 225 is closed during European session.

### FX Performance

The following table shows the latest exchange rate and daily performance of major currency pairs.

**Note**:
– Prices are the exchange rate (e.g., EUR/USD = USD per EUR).
– Daily Change (%) is calculated as (Close – Previous Close) / Previous Close * 100.
– ‘N/A’ indicates data not available.

### Commodities Performance

The following table shows the latest price and daily performance of major commodities.

**Note**:
– Prices are in USD per unit (e.g., per barrel for Crude Oil, per ounce for Gold).
– Daily Change (%) is calculated as (Close – Previous Close) / Previous Close * 100.
– ‘N/A’ indicates data not available.

### BTC and ETH Performance

The following table shows the latest price and daily performance of BTC and ETH.

**Note**:
– Prices are in USD.
– Daily Change (%) is calculated as (Close – Previous Close) / Previous Close * 100.
– ‘N/A’ indicates data not available.

## Economic Calendar of Today (Most Important Events)

The following table lists high-importance economic events for today, 2025-08-20, with times in US Eastern Time.

**Notes**:
– **Cur**: Currency associated with the event (with flag emoji).
– **Imp**: Importance (High, Medium, Low, None).
– **Actual**: Reported value (if available).
– **Forecast**: Expected value (if available).

On August 20, 2025, several high-importance economic events are influencing financial markets, particularly during the active European session.

The first significant release came at 02:00 ET with the UK’s Consumer Price Index (CPI) for July, which showed a year-on-year increase of 3.8%, surpassing the forecast of 3.7%. This unexpected uptick in inflation could have implications for the Bank of England’s monetary policy, potentially leading to discussions around interest rate adjustments. The GBP is likely to experience volatility as traders react to this surprise, indicating stronger inflationary pressures than anticipated.

At 05:00 ET, the Eurozone’s CPI data for July is set to be released, with market expectations at 2.0%. This figure will be crucial for assessing inflation trends in the Eurozone, especially in the context of the European Central Bank’s (ECB) stance on interest rates. A deviation from the forecast could significantly impact the EUR, given the ongoing discussions surrounding monetary policy.

Later in the day at 10:30 ET, the US will report its Crude Oil Inventories, with a forecasted decrease of 0.800 million barrels. This data is vital for gauging supply levels and could affect oil prices, impacting energy stocks and the broader market.

Finally, at 14:00 ET, the release of the FOMC Meeting Minutes will provide insights into the Federal Reserve’s recent deliberations. Any signals regarding future monetary policy directions could lead to increased volatility in USD pairs and broader market reactions.

As the European session progresses, traders will closely monitor these events, which are poised to shape market sentiment and trading strategies across currencies and commodities.

## Remaining Economic Calendar Comment for the Week (Important Events Only)

This week, several high-importance economic events are scheduled that could significantly impact financial markets, particularly the USD and EUR.

On August 21, at 08:30 AM (US Eastern Time), the Initial Jobless Claims will be released, with a forecast of 227,000 claims. This data is critical as it reflects the health of the labor market, and any deviation from expectations could lead to volatility in USD-denominated assets. Concurrently, the Philadelphia Fed Manufacturing Index for August is anticipated at 5.9, providing insight into regional manufacturing conditions. The S&P Global Manufacturing PMI and Services PMI, both due at 09:45 AM, with forecasts of 49.9 and 53.3 respectively, will also be closely watched. A reading below 50 in the Manufacturing PMI could indicate contraction, influencing market sentiment.

Later, at 10:00 AM, Existing Home Sales for July are expected to be reported at 3.92 million. This metric is vital for gauging consumer confidence and housing market health, impacting related sectors and the broader economy.

On August 22, the German GDP (QoQ) for Q2 is set for release at 02:00 AM, with a forecast of -0.1%. A contraction could heighten concerns over the Eurozone’s economic stability, influencing EUR trading.

Finally, Fed Chair Powell’s speech at 10:00 AM may provide insights into future monetary policy, with potential implications for interest rates and market expectations.

As the European market session is actively open, traders should remain vigilant for real-time reactions to these indicators, as they may lead to significant market movements.