European markets traded positively despite uncertainties from the U.S. economy and strong euro pressures
Global stock markets opened on Monday, September 8, 2025, with mixed but cautiously optimistic sentiment, driven by geopolitical developments, economic data, and central bank policy expectations.
Asian markets led the early rally, supported by Japan’s Prime Minister Shigeru Ishiba’s surprise resignation, which weakened the yen and benefited exporters. European markets showed resilience amid cautious expectations of a U.S. Federal Reserve rate cut. Conversely, U.S. markets reflected growing concerns about economic growth after a weaker-than-expected jobs report last week.
Strong gains in Asia
In Asia, Tokyo’s Nikkei 225 surged 1.47 percent to 43,649.54 points, continuing its climb as the yen declined to around 148.14 against the dollar. The Topix index also gained 0.97 percent, reaching approximately 3,135.58 points. South Korea’s Kospi edged up 0.98 percent, while Hong Kong and Shanghai markets rose around 0.33 percent, and Taiwan’s Taiex added 1.30 percent.
Meanwhile, Australia’s ASX 200 slipped modestly by 0.34 percent, reflecting some regional caution despite generally positive momentum. Japanese economic data further buoyed sentiment, with Q2 GDP growth revised up to 0.5 percent quarter-on-quarter, stronger than the estimated 0.3 percent, marking Japan’s fifth consecutive quarter of expansion fueled by robust consumption and business investment.
Turning to India, the benchmark BSE Sensex increased by 124.47 points to close at 80,835.07 on Monday, while the Nifty 50 index posted gains of 70.00 points to 24,809.85.
Read more | Stock market today: Nikkei rebounds, Euro Stoxx 50 rallies, Dow Jones cautious amid Fed rate cut expectations
European resilience despite challenges
Across Europe, markets traded positively despite lingering uncertainties from the U.S. economy and a stronger euro impacting export sectors. The Euro Stoxx 50 declined by 0.53 percent, reaching around 5,318.15 points, supported by expectations of a Federal Reserve rate cut amid weakening U.S. labor data. Within the index, industrial players like Siemens and Airbus faced some pressure, whereas technology stocks such as ASML posted gains.
London’s FTSE 100 advanced 0.29 percent, closing near 7,892 points, while Germany’s DAX inched up 0.13 percent, reaching about 15,830 points. The pan-European STOXX 600 continued its cautious but steady recovery with a 0.2 percent increase, extending the summer rebound. Investors remain vigilant this week as the market pricing includes at least a 25 basis point rate cut by the Fed, with some speculating a larger half-point move depending on upcoming inflation data.
Goldman Sachs projects a 5 percent rise for European equities over the coming year, though tempered by potential challenges such as a strong euro and trade uncertainties.
Cautious outlook in U.S.
The Dow Jones Industrial Average (DJIA) was last recorded at approximately 45,400.86 points, following a decline of about 0.48 percent, losing around 220 points from the previous close (45,635). Futures are indicating a modest movement around this level.
Additionally, the S&P 500 closed near 6,481.50, down 0.32 percent, but it has since climbed to about 6,491 points on Monday morning, reflecting a slight gain of 0.15 percent from the last session. This index has risen over 1.8 percent in the past month and nearly 19 percent year-over-year, driven mainly by expectations of Federal Reserve rate cuts.
Moreover, the Nasdaq Composite slipped slightly by 0.03 percent from recent record intraday highs but remains near peak levels, trading around 21,700 points.
