Markets Today: China Industrial Production Slows, Gold Steady, FTSE 100 Eyes Support

[Ben Graham]

Asia Market Wrap - Asian Shares Edge Higher, Japanese Markets Closed

Most Read: Markets Weekly Outlook - S&P 500, Nasdaq & Dow Jones on a Tear as Fed Rate Cut Looms

Asian stock markets rose, following a global trend, as investors expect the US Federal Reserve to cut interest rates soon.

Even with disappointing economic news from China—where business activity slowed and investment fell sharply for the second month in a row.

The MSCI Asia Pacific Index, a measure of stocks across Asia, climbed 0.2% to surpass its previous record set in February 2021. Meanwhile, a global stock index held steady after hitting its own record high on Friday.

Due to a holiday in Japan, there was no trading of US government bonds (Treasuries) in Asia.

Nikkei futures stood at 44520 just below the cash close of 44768 after last weeks 4% gain.

South Korea's stock market went up by 0.4% to reach another record high after the government decided not to increase taxes on stock investments.

Chinese stocks performed well, with major companies up by 0.5% and Hong Kong's stock index up by 0.2%. This was driven by investors betting on Chinese technology companies, likely because of ongoing trade discussions between China and the U.S.

Top officials from the U.S. and China began trade talks in Madrid on Sunday and will continue them today. President Trump mentioned he is still in negotiations about the deadline for the Chinese app TikTok to sell its U.S. operations.

Chinese Data Underwhelms

China's factory and industrial output grew by 5.2% compared to the same time last year. This was a slower pace than July's 5.7% and was less than what economists had predicted. It was the slowest growth since August 2024. The slowdown was mainly due to weaker growth in manufacturing and in the production of things like electricity and gas, which suggests that people in China aren't buying as much.

However, some areas still did well. Mining output grew steadily, and within manufacturing, many key sectors saw growth. This included industries like car making, computers, shipbuilding, and metal production. Even with the recent slowdown, China's industrial output has still grown by 6.2% over the first eight months of the year. On a month-to-month basis, output increased by a small amount, 0.37%.

European Open - Banking Stocks Lift European Shares

European stocks went up on Monday morning, mainly because bank stocks did well. Investors are getting ready for a big week of meetings by central banks, including the U.S. Federal Reserve, which could decide to cut interest rates.

Shares of the French company Rubis also jumped 6.7% after a report came out saying that two companies, CVC Capital Partners and Trafigura, are making offers to buy it. Rubis is a fuel company worth about $3.5 billion.

In France, the stock market went up by 0.4%, with French banks like SocGen, BNP Paribas, and Credit Agricole all seeing their share prices increase.

This happened despite the fact that Fitch downgraded France's credit rating on Friday. This downgrade could make it harder for the new Prime Minister, Sebastien Lecornu, to create a new budget.

On the FX front, the euro weakened slightly against the dollar, trading at 1.1729.

Meanwhile, the British pound and Australian dollar both rose. The pound increased to 1.3565, and the Australian dollar went up to 0.6663, getting close to its highest value in 10 months, which it reached on Friday.

The Japanese yen also became a bit stronger, trading at 147.44 per U.S. dollar, as investors anticipate the Bank of Japan's policy meeting later this week. The New Zealand dollar also saw a small gain, rising to 0.5964.

Even though China released disappointing economic news—showing that its factory production and retail sales had their weakest growth since last year—the Chinese yuan still saw a slight increase against the US dollar, reaching 7.1213 per dollar. This was mainly because the US dollar was a bit weaker overall.

Currency Power Balance

Source: OANDA Labs

Oil prices increased slightly on Monday. This was due to two main factors: drone attacks by Ukraine on oil refineries in Russia and a statement from U.S. President Donald Trump.

Trump said he is ready to place sanctions on Russia if NATO countries stop buying Russian oil.

Brent crude oil cost $67.31 per barrel, up 32 cents, and U.S. crude oil cost $63.01 per barrel, also up 32 cents. Both types of oil rose by about 0.5%.

Gold prices remained steady on Monday. Investors are waiting for the U.S. Federal Reserve to announce a rate cut, which is widely expected to happen this week. However, some investors are selling their gold to take profits after its recent rise, and a stronger U.S. dollar is also limiting how much gold prices can increase.

Spot gold was priced at $3,642.65 per ounce. Last week, gold climbed about 1.6%, reaching a new record high of $3,673.95 on Tuesday.

Meanwhile, U.S. gold futures for December delivery went down slightly, by 0.2%, to $3,680.20.

For more information on Gold, read Gold (XAU/USD) Technical: Eyeing a new all-time high above US$3,675, supported by positive flows and positioning

Economic Data Releases and Final Thoughts

Looking at the economic calendar, the European session will be a quiet one with the US session also relatively bare from a data perspective.

Markets will focus on updates from US-China talks, developments around Russia-Ukraine and any comments around the Federal Reserve from the Trump administration could stoke volatility.

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

Chart of the Day - FTSE Index

From a technical standpoint, the FTSEhas returned to the top of the range it broke last week.

Bulls remain in control as long as the FTSE remains above the swing low at 9242 which lines up with the 100-day MA.

Looking at price action it does appear that we could get a pullback toward the 100-day MA before a potential new leg to the upside.

Immediate resistance now rests at 9300 and 9340.

Looking at support on the downside, immediate support rests at 9244 before the 9223 and 9198 handles come into focus.

FTSE 100 Four-Hour Chart, September 15. 2025

Source: TradingView.com (click to enlarge)

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