Global Stocks Decline as Investors Await Fed Guidance

August 22, 2025 – Equity markets across Asia and Europe lost ground on Thursday, with traders adopting a cautious stance ahead of the U.S. Federal Reserve’s annual Jackson Hole meeting. Investors are watching closely for signals on the timing of possible rate cuts.

In Asia, Japan’s Nikkei 225 slipped after a strong run earlier this month, while South Korea’s Kospi saw renewed pressure on semiconductor shares. China’s CSI 300 index also edged lower, weighed down by uneven economic data and persistent weakness in the property sector. Hong Kong’s Hang Seng drifted down as financial and real estate stocks lagged.

European markets mirrored the risk-off mood. The STOXX 600 index pulled back from recent highs, led by declines in technology and industrial names. Market strategists pointed to profit-taking and a wait-and-see approach before Fed Chair Jerome Powell’s remarks at Jackson Hole.

U.S. futures were slightly in the red ahead of the event, reflecting investor hesitation after a month-long rally that lifted Wall Street to near-record levels. On currencies, the dollar strengthened against major peers, while the yuan continued to face downward pressure amid concerns about China’s growth outlook and capital outflows.

In commodities, crude oil prices steadied following recent swings tied to supply expectations, and gold ticked lower as the stronger dollar reduced its safe-haven appeal. Analysts said the mix of Fed uncertainty, fragile Chinese growth, and geopolitical factors is keeping risk appetite subdued, with most investors opting to stay defensive until clearer policy signals emerge.