Markets Today: Euro PMI Hits 15-Month High, FTSE 100 Retreats From Fresh All-Time Highs, US PMI and Jackson Hole in Focus

[Ben Graham]

Asia Market Wrap

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Asian tech stocks climbed, and Nasdaq 100 futures bounced back from earlier losses as dip buyers helped stabilize the index late in U.S. trading.

In the MSCI Asia Pacific Technology Index, two stocks gained for every one that fell. Advantest and Samsung Electronics were among the top performers, while Taiwan Semiconductor Manufacturing Co. rose 0.9% after experiencing its biggest single-day drop in four months on Wednesday.

Japan's Nikkei .N225, which reached a record high during trading on Tuesday, fell by 0.6%. Meanwhile, South Korea's KOSPI .KS11 rose 0.7% after hitting a six-week low on Wednesday. Despite the dip, it remains close to the four-year high it achieved on July 31.

Euro Area Composite PMI Hits 15-Month High

The HCOB Eurozone Composite PMI rose to 51.1 in August 2025, up from 50.9 in July, surprising markets that expected a drop to 50.7. This marks the fastest growth in the Eurozone's private sector since May last year, based on a flash estimate. Growth was driven by the services sector expanding for the third month in a row (50.7 vs 51) and an unexpected recovery in manufacturing (50.5 vs 49.8), the first in over three years.

New orders increased for the first time in 14 months, even though export orders declined. This rise in demand led businesses to hire more staff for the sixth consecutive month. However, input costs rose to a five-month high, prompting companies to raise their prices at the fastest rate in four months. Despite the positive numbers, business confidence dropped for the second month due to concerns about U.S. tariffs and economic challenges in the Eurozone.

Overall, the PMI suggests the economy isn’t being hit too hard by the trade war right now. With a trade deal in place, there’s a chance for economic growth to pick up as uncertainty fades. However, there are still plenty of risks to watch out for in the future.

UK PMI Hits 1-Year Highs

The UK S&P Global Composite PMI rose to 53 in August 2025, up from 51.5 in July, beating expectations of 51.6. This marks the fastest growth in private-sector business activity in a year, based on a flash estimate. Growth was driven by the services sector, which hit a one-year high (53.6 vs 51.8 in July), offsetting a sharper decline in manufacturing (47.3 vs 48).

The strong performance in services boosted overall new business volumes to their highest level since October last year, even as factories saw the biggest drop in new orders since April due to rising costs and global trade challenges. Input costs rose to their highest since May, with businesses pointing to higher National Insurance payments and labor costs. Despite these pressures, business confidence for the year ahead improved.

European Open

European stock markets opened steady as investors prepared for three days of important updates from the Federal Reserve's annual meeting in Jackson Hole. Central bankers from around the world will attend, with the main focus on Fed Chair Jerome Powell's speech on Friday, as traders look for clues about a possible rate cut in September.

The pan-European STOXX 600 index and Germany's DAX stayed mostly unchanged. Britain's FTSE 100 rose slightly by 0.1%, while France's CAC 40 dipped by 0.1%. Defense stocks rose 1.4% after being under pressure earlier in the week due to hopes of a Ukraine-Russia peace deal.

Talks about Ukraine's security in case of a peace deal with Russia continued, with Germany showing hesitation about sending peacekeeping forces, despite the Chancellor being open to the idea.

In other news:

• WH Smith shares plunged 36%, the biggest drop on record, after the company lowered its profit forecast for its North America division due to an accounting error.
• Dutch insurer Aegon gained 6.8% after doubling its share buyback to 400 million euros and considering moving its headquarters to the U.S.
• German ticketing company CTS Eventim fell 18.8% after reporting disappointing second-quarter results.
• Aker BP, a Norwegian oil company, rose 3.1% after discovering a large oil field in the North Sea.

On the FX front, The dollar index stayed steady at 98.33 on Thursday, after reaching its highest level since August 12 at 98.441 the day before. The dollar also rose 0.2% to 147.58 yen.

The euro and British pound were unchanged, trading at $1.1641 and $1.3446, respectively.

Currency Power Balance

Source: OANDA Labs

Economic Data Releases and Final Thoughts

Looking at the economic calendar, it is a busy day ahead in the US session.

The major event of the day comes from the US with PMI and home sales data. However, market participants may be more focused on the Jackson Hole symposium which kicks off today.

As things stand it appears Fed Chair Jerome Powell only speaks tomorrow and thus today could be a choppy one for financial markets as the anticipation grows.

For all market-moving economic releases and events, see the MarketPulse Economic Calendar. (click to enlarge)

Chart of the Day - FTSE 100 Index

From a technical standpoint, the FTSE 100 finally breached the 9200 and made a move to the upside with fresh all time highs printed late yesterday at 9323.

We are already seeing a significant pullback for the FTSE which is trading at 9274 at the time of writing.

If the pullback does continue, immediate support rests at 9223 before the recent swing low before the impulse move higher at 9180 comes into focus.

The FTSEs rise yesterday came as US markets experienced a selloff before finding support.

If there is a similar move later in the day, the first area of interest will come in at 9300 before the all-time high at 9323 comes into focus.

FTSE Two-Hour Chart, August 21. 2025

Source: TradingView.com (click to enlarge)

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