August 27, 2025 Global Stock Market Report: Mixed Global Markets and Key Issues
Key Market Overview
As of August 27, 2025, global stock markets are showing mixed performance, with different trends across regions. The contrast between the US market's rise, the European market's decline, and slight fluctuations in the Asian market reflects investors' differing reactions to political uncertainty and policy changes in each country.
US Market: Rising Amidst Nvidia Expectations and Fed Conflict
Major Index Overview
As of August 26, the US market showed a broad upward trend. The S&P 500 Index rose 0.41% to 6,465.94 points, while the Dow Jones Industrial Average rose 0.30% to 45,418.07 points. The Nasdaq Composite Index rose 0.44% to 21,544.27 points, confirming the strength of technology stocks.
The VIX fear index fell 1.15% to 14.62, indicating market stability. However, potential volatility due to President Trump's intervention with the Federal Reserve remains a concern.
NVIDIA Earnings Release Imminent
NVIDIA's second-quarter earnings release, scheduled for after the market close on August 27th, is drawing significant attention. Market analysts predict that the earnings results will have a significant impact on the overall market, as NVIDIA accounts for 7.6% of the S&P 500 and 14.4% of the Nasdaq.
European Markets: Plunge Due to French Political Crisis
Major Indices
European markets declined across the board on August 26th. The German DAX index fell 0.50% to 24,152.87 points, and the French CAC 40 index plunged 1.70% to 7,709.81 points. The UK's FTSE 100 index fell 0.60% to 9,265.80 points.
French Political Unrest
Political uncertainty is spreading in France as the minority government faces a confidence vote on September 8th. After Prime Minister François Bayrou announced he would push for a confidence vote on his austerity budget, the risk of government collapse has increased as major opposition parties have expressed their opposition.
Major French banking stocks were hit hard, with BNP Paribas down 4% and Société Générale plummeting over 6%. This reflects concerns about major financial institutions holding French government bonds.
Asian Markets: Mixed, with Minor Changes
Major Indices
Asian markets are showing mixed performance as of the opening on August 27th. China's Shanghai Composite Index opened at 3,869.61 points, up 0.03%, while Hong Kong's Hang Seng Index rose 0.40% to 25,626.17 points.
Japan's Nikkei 225 Index opened at 42,476.09 points, up 0.19%, while South Korea's KOSPI index rose 0.20% to 3,185.87 points. Australia's S&P/ASX 200 Index rose 0.24% to 8,957.30 points.
China Market: Solid Performance
The Chinese market is showing relative stability. The Shanghai Composite Index remains up 18.57% year-to-date, reflecting the benefits of the Chinese government's economic stimulus measures and the restructuring of global supply chains.
Emerging Markets: Continued Strength
Outstanding Performance
Emerging markets are expected to see notable performance in the first half of 2025. The emerging market index rose 14.9%, significantly outperforming the S&P 500's 6.2% gain. Frontier markets delivered an even stronger 19.8% return.
Growth Outlook
Amundi Investment Institute projects emerging market GDP growth of 3.9% in 2025-2026, significantly exceeding the 1.3% growth rate for developed markets. India is projected to grow by 6.6% and China by 4.3%.
Foreign Exchange Market: Dollar Weakness, Yen Strength
Major Currency Trends
The US dollar index rose 0.15% to 98.36, but overall weakness persists due to concerns about Trump's intervention in the Federal Reserve. The Japanese yen rose 0.09% to 147.60 won against the dollar, marking a 0.58% month-on-month gain.
The euro is trading below $1.1650, and the British pound is hovering around $1.3470. Bank of Japan Governor Ueda's comments suggesting a rate hike are a key factor in the yen's strength.
Commodity Markets: Gold Falls, Crude Oil Mixed
Gold Market
Gold prices fell 0.22% to $3,386.33 per ounce on August 27. However, they remain up 2.16% for the month and 35.02% for the year. Concerns about the Federal Reserve's independence are supporting safe-haven demand for gold.
Crude Oil Market
Brent crude oil was virtually unchanged at $67.22 per barrel, while WTI crude oil fell 0.02% to $63.23. Concerns about OPEC+ production increases and slowing demand are limiting oil price gains.
Bond Market: Yields Rising
US Treasury Bonds
The US 10-year Treasury yield rose 0.01 percentage point to 4.27%. Despite Trump's intervention at the Federal Reserve, the market is pricing in an 83% chance of a September rate cut.
Japanese Government Bonds
The Japanese 10-year government bond yield reached 1.63%, its highest level since 2008. This is believed to reflect expectations of further interest rate hikes by the Bank of Japan.
Cryptocurrency Market: Massive Fund Movements
Bitcoin and Ethereum
Bitcoin fell 2.82% to $109,667, while Ethereum plummeted 8.51% to $4,381. However, institutional investors' capital movement from Bitcoin to Ethereum is attracting attention.
The Impact of Whale Trading
In late August, an anonymous whale executed a large transaction, converting 23,968 Bitcoins to Ethereum. This is being interpreted as an example of growing interest in Ethereum among institutional investors.
Market Outlook and Investment Strategy
Short-Term Risk Factors
- French political instability: Further volatility in the European market is expected following the September 8th confidence vote.
- Fed Independence Controversy: If the conflict between Trump and the Fed continues, concerns about a weak dollar and inflation could spread.
- NVIDIA's earnings: This will be a key indicator of the sustainability of the AI boom.
Investment Opportunities
The bullish trend in emerging markets is expected to continue, and structural growth in the Asia-Pacific region is attracting attention. Japan's interest rate normalization process, along with the strengthening yen, is expected to provide new investment opportunities in the Japanese market.
In the commodities market, gold's role as a safe-haven asset is gaining traction, and in the cryptocurrency market, the influx of funds to Ethereum is likely to become a new trend.