Morning wrap (21.08.2025)

Wall Street closed lower yesterday, though a significant part of early-session losses was pared back as investors started “buying the dip” (S&P 500: -0.24%, Nasdaq: -0.67%, DJIA: +0.04%, Russell 2000: -0.32%). The end of the tech stock selloff is visible in Asian trading, while US100 trades flat.

Fed Governor Lisa Cook, accused of falsifying loan application documents, stated she would not allow herself to be “intimidated” by Donald Trump’s administration into resigning from her position at the Fed. Cook added that she is gathering proper documentation to respond thoroughly to all substantive questions.

Sentiment in the Asia-Pacific region is mixed, though tech companies show relative optimism. The broad MSCI Asia Pacific Index is down 0.5%, along with markets in Beijing (CHN.cash: -0.3%), Hong Kong (HK.cash: -0.3%) and Tokyo (JP225: -0.6%). Meanwhile, indices in India (Nifty 50: +0.3%), South Korea (Kospi: +0.4%), Singapore (SG20cash: +0.3%) and Australia (AU200.cash: +0.7%) are gaining.

Biomed stocks in China rose after Premier Li Qiang commented that support for R&D in the sector should be increased.

New Zealand reported its first trade deficit (-NZD 578m) since January. Exports grew, but at a slower pace than imports, resulting in a trade balance deficit.

RBNZ President Christian Hawkesby said rising commodity prices and rate cuts are already providing support to New Zealand’s economy.

Australia’s Composite PMI rose in August to 54.9 (previously 53.9). Activity accelerated in both manufacturing and services. Employment is clearly rising as more tasks need to be completed, while export activity is rebounding despite customs-related uncertainty.

In Japan, the Composite PMI rose to 51.9 (previously 51.6), signaling the fastest growth since February. The result was mainly driven by services, while the manufacturing decline nearly stopped, helped by higher factory output.

Forex market volatility remains limited at the start of the session. The dollar index (USDIDX) trades flat. The weakest G10 currencies are currently the Swiss franc (USDCHF) and the Australian dollar (AUDUSD), both down 0.1% against the dollar. EURUSD is flat at 1.164.

OIL.WTI extends gains by 0.3%, while NATGAS futures trade flat after rollover. Gold loses 0.3% to $3,340 per ounce, while silver trades flat.

In crypto, pessimism still dominates. Bitcoin is down 0.3% to $114,100, Ethereum -0.75% to $4,315, with declines also in Chainlink (-3%), Polygon (-1.6%), and Ripple (-1.3%).