Markets Today: Inditex Up 6%, Nikkei Up 0.8% as China CPI Falls. DAX Eyes Return to 24000

[Ben Graham]

Asia Market Wrap - Asian Stocks Advance

Most Read: US CPI Preview: Implications for the DXY & Federal Reserve

Asian stock markets went up on Wednesday, following a similar trend on Wall Street. This happened because traders are becoming more confident that the US Federal Reserve will lower interest rates next week, as the US job market seems to be weakening.

In Japan, the Nikkei stock average rose by 0.8%, while South Korea's KOSPI increased by 1.7%. Taiwan's stock market also did well, climbing 1.5% to reach a new all-time high. Hong Kong's Hang Seng index was up 1.3%, and mainland Chinese blue-chip stocks rose by 0.3%.

The Bank of Japan is expected to announce its policy decision next Friday, and it is widely believed they will not raise interest rates yet. There have been conflicting reports, with one from Reuters suggesting the central bank might wait longer to tighten policy, while Bloomberg reported that a rate hike could still happen this year.

Investors are also paying attention to political developments. They are watching to see who will become Japan's next prime minister after Shigeru Ishiba and are observing the political situation in France, which recently got its fifth prime minister in two years.

China CPI Falls -0.4%

Consumer prices in China dropped by 0.4% compared to the previous year. This was a bigger drop than expected and the fifth time this year that prices have gone down. It was also the sharpest decline since February. The main reason for this was a significant 4.3% decrease in food prices, the biggest drop in almost four years. Pork prices, in particular, fell sharply because there was plenty of supply, lower production costs, and weak consumer demand.

On the other hand, prices for non-food items rose by 0.5%, which was a faster increase than in July. This was helped by government subsidies for consumer goods. Prices went up for housing, clothing, healthcare, and education. Transport costs also decreased, but not as much as they did in July.

When you look at core inflation, which doesn't include food and energy, prices rose by 0.9%. This was the highest increase in 18 months. On a month-to-month basis, overall consumer prices stayed flat, which was also less than what experts had predicted.

European Open - Zara Owner Inditex Rises 6%

On Wednesday, European stocks went up, with retailers leading the way. This happened after Inditex, the big Spanish fashion company that owns Zara, released its second-quarter earnings. Inditex's shares climbed by 6% because the company reported that its sales were picking up before the fall season, even though its second-quarter sales weren't as strong as expected.

The overall STOXX 600 index for Europe rose by 0.4%, staying close to its highest point in two weeks.

Shares of Novo Nordisk also increased by nearly 2% after the Danish company, which makes the weight-loss drug Wegovy, announced a plan to restructure and cut about 11.5% of its employees. This move is expected to save the company around $1.26 billion each year as it faces tough competition in the weight-loss drug market.

European technology stocks also had a good day. German software company SAP and Dutch company ASML both saw their shares rise by about 1% each. This was in response to Oracle's announcement that it expects to receive more than half a trillion dollars in future cloud orders. Oracle's shares listed in Frankfurt also shot up by 30%.

On the FX front, The euro remained mostly unchanged, trading at $1.17115, after a 0.5% drop in the last session. The British pound was at $1.3534, and the Japanese yen was flat at 147.41 per dollar.

The Australian dollar gained 0.3%, reaching $0.66065, and is close to the seven-week high it hit on Tuesday.

The U.S. dollar index, which compares the dollar to six other major currencies, was stable at 97.834 after a 0.3% gain on Tuesday. So far in 2025, the index is down about 10% because of unpredictable U.S. trade policies and the expectation that interest rates will be cut, which has made the dollar less attractive to investors.

For more on the Euro, read AUD/USD Technical: Further Aussie rally towards major resistance, supported by firmer China core inflation

Currency Power Balance

Source: OANDA Labs

On Wednesday, oil prices increased due to two main events. First, Israel attacked Hamas leaders in Qatar. Second, US President Donald Trump urged European countries to place taxes on those who buy Russian oil. However, a generally weak outlook for the market prevented prices from rising even more.

As a result, Brent crude oil futures went up by 61 cents, or 0.92%, to $67 per barrel. Similarly, U.S. West Texas Intermediate crude futures also rose by 61 cents, or 0.97%, to $63.24 per barrel.

For more on Oil prices, read WTI Oil Rallies 1.8% as Russian Supply Concerns Outweigh Modest OPEC + Output Hike

On Wednesday, the price of gold went up, staying above $3,600 per ounce. This increase was driven by the belief that the US Federal Reserve will cut interest rates later this month. Investors are also waiting for important inflation reports that are scheduled to be released this week.

Spot gold rose by 0.5% to $3,644.54 per ounce, after reaching a record high of $3,673.95 on Tuesday. Meanwhile, US gold futures for December delivery remained unchanged at $3,683.

Economic Data Releases and Final Thoughts

Looking at the economic calendar, the European session will be quiet with a speech by SNB Chairman Schlegel before attention turns to US PPI data.

US PPI data will definitely be interesting following last month's uptick. This comes a day after the -991k jobs revision announced yesterday. Market concerns around inflation remain in play even if the labor market is the main focus.

Signs that producer prices are rising may stoke growth and demand fears which should now firmly be in the mind of market participants.

Markets will also wait on more news around the Fed and the back and forth between the Trump administration and Fed policymaker Lisa Cook.

A federal judge on Tuesday made a temporary decision to stop President Donald Trump from firing Federal Reserve Governor Lisa Cook. This is an initial defeat for the White House in a legal dispute that could challenge the Federal Reserve's long-standing independence.

U.S. District Judge Jia Cobb's preliminary ruling stated that the Trump administration's accusations that Cook committed mortgage fraud before she was in office were probably not a strong enough reason to remove her from her position.

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

Chart of the Day - DAX Index

From a technical standpoint, the DAX is eyeing a break of the 100-day MA which could facilitate a return to the psychological 24000 handle.

The period-14 RSI is approaching the 50 neutral level with a break above seen as a sign that momentum is shifting to bullish.

The index has been struggling to gain acceptance above the 100-day MA over the last 5 days.

Will today be the day?

DAX Daily Chart, September 10. 2025

Source: TradingView.com (click to enlarge)

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