Markets Split as Investors Await Powell’s Jackson Hole Speech

Global stock markets showed mixed performance on Friday, August 22, 2025, as investors turned their attention to a pivotal address by US Federal Reserve Chairman Jerome Powell at the Jackson Hole symposium, a key event expected to signal the Fed’s stance on interest rate cuts.

The past week has been marked by cautious trading as markets balance persistent inflation worries with optimism from the booming tech sector, particularly artificial intelligence. Powell’s remarks are widely seen as crucial in shaping expectations ahead of the Fed’s September policy meeting.

Adding political pressure, US President Donald Trump has repeatedly urged Powell to slash rates this year — an unusual intervention for an institution long considered independent.

Asian Markets Rise, Europe Mixed

In Asia, markets closed mostly higher.

• Tokyo’s Nikkei 225 edged up 0.1% to 42,633.29, bouncing back from Thursday’s 0.7% drop.
• Shanghai Composite jumped 1.5% to 3,825.76, breaking the 3,800 mark for the first time in 10 years, driven by gains in semiconductor giant Cambricon.
• Hong Kong’s Hang Seng climbed 0.9% to 25,339.14, while Seoul and Bangkok also saw gains.
• However, Sydney and Taipei ended the day lower.

Japan’s latest figures showed core inflation easing slightly to 3.1% in July, down from 3.3% in June, but still well above the Bank of Japan’s 2% target — fueling expectations of a rate hike in October.

Morning trading in Europe was subdued. London’s FTSE 100 slipped 0.1% to 9,300.77, while Frankfurt was also slightly lower. Paris managed a marginal gain.

Chris Weston, head of research at Pepperstone, noted that Asia could serve as a “safe harbour” as markets await Powell’s comments, but warned that there is “a very low probability” Powell will directly signal a rate cut.

Geopolitics and Oil in Focus

Beyond monetary policy, geopolitical tensions remain at the forefront. President Trump announced on Thursday a two-week timeline to assess ongoing peace talks between Russia and Ukraine, more than three years after Moscow’s invasion. Diplomatic efforts in recent days included Trump’s meetings with both Russian and Ukrainian leaders, as well as key European counterparts.

The possibility of sanctions being lifted on Russia, a major oil producer, has also spurred speculation in energy markets. Oil prices edged higher on Friday, adding to recent gains.