Markets Today: Trump Slaps 50% Tariff on India, Australian Inflation Surge, FTSE Eyes Head & Shoulder Pattern. NVIDIA Earnings Later

[Ben Graham]

Asia Market Wrap - India Tariffs Kick In, Australia CPI Surge

Most Read: NVIDIA (NVDA) Earnings: Navigating the Blackwell Supercycle Amid Geopolitical Crosscurrents

Asian stocks were mostly flat on Wednesday as investors awaited an earnings report from AI giant Nvidia, which could influence market sentiment in the short term.

There were gains for Asian tech shares with China's AI leader Cambricon jumped 8.2% to a record high after posting its best-ever profit. Nikon shares surged 21% as Ray-Ban maker EssilorLuxottica considered boosting its investment.

Overall, Asian tech stocks rose by up to 0.7%.

In China, new data showed that industrial companies' profits dropped more slowly in July, suggesting efforts to cut overcapacity might be easing pressure from tough competition.

Meanwhile, the U.S. imposed a steep 50% tariff on some Indian goods as punishment for buying Russian oil, disrupting years of efforts to build stronger ties with India. Indian markets are closed on Wednesday for a holiday.

Looking at the Pacific Region, Australian consumer prices rose much more than expected in July, driven by a spike in electricity costs due to the timing of government rebates. Core inflation also increased, reducing hopes for a rate cut next month.

The chances of the Reserve Bank of Australia cutting rates in September dropped to 22% from 30% after the data, though investors still expect a rate cut in November.

For more on the Australian inflation picture, read Australian inflation surges, Aussie dips

European Open - French Political Drama, European Stocks Rise as Market Participants ‘Buy the Dip’

European shares rose slightly on Wednesday, bouncing back from their biggest drop in almost a month, as investors took advantage of lower prices while staying cautious about political risks in France.

The pan-European STOXX 600 index rose 0.4% by early Wednesday.

France's CAC 40 also gained 0.4%, recovering from a three-week low caused by fears that Prime Minister Francois Bayrou's government might collapse next month. Mid-sized French stocks stayed mostly flat, while major banks BNP Paribas and Societe Generale extended small losses for a third day.

Three opposition parties announced plans to challenge Bayrou's budget cuts on September 8. If the government falls, President Macron could appoint a new prime minister, keep Bayrou as a temporary leader, or call for early elections.

Stock markets in Germany, Italy, and Spain rose slightly, gaining between 0.1% and 0.3%.

Shares of Orsted and Novo Nordisk, which had been underperforming, rose 3.5% and 2%, respectively. Porsche climbed 3.8% after reports that the company is searching for a new CEO as Oliver Blume focuses on leading Volkswagen.

Rio Tinto's London-listed shares rose nearly 1% after the company announced plans to simplify its operations into three units: Iron Ore, Aluminium & Lithium, and Copper.

Meanwhile, a survey showed German consumer confidence is expected to drop for the third month in September, as worries about job security and inflation weigh on households.

On the FX front, The euro fell 0.4% to $1.1593, and the British pound dropped 0.3% to $1.3441, losing some of the gains made after Trump announced plans to fire Fed Governor Lisa Cook over alleged issues with mortgage loans.

The U.S. dollar gained 0.2% against both the Japanese yen and the Swiss franc, while the New Zealand dollar dropped 0.4% to $0.5834.

Currency Power Balance

Source: OANDA Labs

Oil prices leveled off on Wednesday after dropping the day before. Investors are keeping an eye on updates about the Ukraine war and a report showing a decline in US crude inventories.

US special envoy Steve Witkoff said he will meet with Ukrainian officials in New York this week and is also in talks with Russia to help end the conflict.

Brent crude was down 4 cents at $67.18 per barrel, and WTI crude dropped 3 cents to $63.22. Both prices had fallen over 2% on Tuesday after starting the week at their highest levels since early August.

Gold prices saw a pullback in the Asian session toward the $3375/oz handle before bulls returned. Safe haven demand remains in play as FED independence fears, uncertainty around the French government and Russia/Ukraine peace talks all add uncertainties to global markets.

For more on Gold, read Gold (XAU/USD) Technical: Push up towards medium-term range resistance zone as Fed’s independence erodes

Economic Data Releases and Final Thoughts

Looking at the economic calendar, a quiet day ahead in terms of data. However, markets will be keeping an eye on developments in France for any changes which could have a significant impact on bond yields across Europe.

According to a Bloomberg report released this morning, the European Union plans to fast-track a law to remove all tariffs on U.S. industrial goods by the end of the week. This move is in response to President Donald Trump's demand, as a condition for the U.S. to reduce tariffs on European car exports.

Later in the day, focus and attention will be on Nvidia, the world's most valuable company, is set to provide updates later today on the AI market, following a sharp tech stock rally that slowed down in August.

For all market-moving economic releases and events, see the MarketPulse Economic Calendar.

Chart of the Day - FTSE 100

From a technical standpoint, the FTSE 100 seems to be forming a head and shoulder pattern on the four-hour chart after a lower high yesterday.

The period-14 RSI is also flirting with the 50 neutral level with a break seen as a sign that momentum may be shifting.

If the head and shoulder pattern completes its formation and we do get a breakout, there is a possibility of a 110 point decline toward the 9120 area which would line up perfectly with the 200-day MA. (yellow line).

Interesting inflection point for the FTSE 100 after multiple fresh all-time highs in the last few weeks. This sets the stage for a potential deeper retracement.

FTSE Daily Chart, August 27. 2025

Source: TradingView.com (click to enlarge)

Follow Zain on Twitter/X for Additional Market News and Insights @zvawda

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