16 September 2025
US stocks rose on Monday as investors awaited the Fed policy meeting later this week. The S&P 500 was up 0.5%.
US Treasuries edged higher ahead of the Fed policy decision. 10-year yields ended down 2bp at 4.04%.
European stock markets mostly rose on Monday ahead of the US Fed meeting. The Euro Stoxx 50 and the French CAC both gained 0.9%, whilst the German DAX edged up 0.2%. In the UK, the FTSE-100 dipped 0.1%.
European government bonds rose (yields fell). 10-year German bund yields fell 2bp to 2.69%, as 10-year French bond yields dropped 3bp to 3.48%. In the UK, 10-year gilt yields declined 4bp to 4.63%.
Asian stock markets traded mixed on Monday, with the Fed rate decision in focus. Korea’s Kospi extended last week’s rally, closing 0.3% higher. Hong Kong’s Hang Seng rose 0.2%, while China’s Shanghai Composite fell 0.3% as investors assessed latest macro data releases. India’s Sensex ended 0.1% lower. Japan’s financial markets were closed for a public holiday.
Crude oil prices rose on Monday amid geopolitical/Russian supply concerns. WTI crude for October delivery settled 1.0% higher at USD63.3 a barrel.
China’s August activity indicators pointed to softer growth momentum in Q3 2025 and broadly missed market expectations. This likely reflected fading fiscal impulse, policy efforts to curb oversupply/overcapacity, and the ongoing property downturn. Adverse weather conditions likely also contributed to the weakness in urban fixed asset investment in July-August. Meanwhile, industrial production growth eased to 5.2% yoy in August from 5.7% yoy in July, but sectoral divergence remained evident with high-tech manufacturing holding up. Retail sales growth fell to 3.4% yoy in August from 3.7% yoy in July.
US retail sales likely moderated in August, to 0.2% mom from 0.5% mom in July, softening during H2 2025 due to a tariff-driven squeeze in real incomes. Industrial production is expected to fall 0.1% mom in August.
We’re not trying to sell you any products or services, we’re just sharing information. This information isn’t tailored for you. It’s important you consider a range of factors when making investment decisions, and if you need help, speak to a financial adviser.
As with all investments, historical data shouldn’t be taken as an indication of future performance. We can’t be held responsible for any financial decisions you make because of this information. Investing comes with risks, and there’s a chance you might not get back as much as you put in.
This document provides you with information about markets or economic events. We use publicly available information, which we believe is reliable but we haven’t verified the information so we can’t guarantee its accuracy.
This document belongs to HSBC. You shouldn’t copy, store or share any information in it unless you have written permission from us.
We’ll never share this document in a country where it’s illegal.
This document is prepared by, or on behalf of, HSBC UK Bank Plc, which is owned by HSBC Holdings plc. HSBC’s corporate address is 1 Centenary Square, Birmingham BI IHQ United Kingdom. HSBC UK is governed by the laws of England and Wales. We’re authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and the PRA. Our firm reference number is 765112 and our company registration number is 9928412.
