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European Stocks Poised for Downturn as Global Sentiment Wavers
20 Aug
Summary
- European markets expected to open lower on August 20, 2025
- U.K. inflation data for July 2025 to be released
- Fed officials to speak at Jackson Hole symposium, hinting at future rate moves
On August 20, 2025, European stocks are expected to open lower as global market sentiment wavers. The U.K.'s FTSE index is predicted to decline by 0.18%, while Germany's DAX, France's CAC 40, and Italy's FTSE MIB are all set to drop by over 0.5%.
This comes after regional bourses traded higher on the previous trading day, as markets reacted positively to talks between U.S. President Donald Trump, Ukrainian President Volodymyr Zelenskyy, and European leaders. However, defense stocks were among the worst performers.
Investors will be closely watching the release of the U.K.'s July 2025 inflation data, which is expected to reach 3.7% in the twelve months leading up to July, up from 3.6% in June. Additionally, the Swedish Riksbank is set to publish its latest monetary policy decision.
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Globally, Asia-Pacific markets fell overnight, following declines on Wall Street in the previous session. Traders are also anticipating key speeches from Federal Reserve officials at the central bank's annual economic symposium in Jackson Hole, Wyoming, on August 24, 2025. Investors are hoping to gain insights into the Fed's future policy moves, with the market currently pricing in an 84.9% chance of a quarter-point rate cut at the Fed's next meeting in September 2025.
