By William Collins, consultant in stock markets – Eurasia Business News, August 17, 2026. Article no 3097
European and Asian stock markets mostly advanced on August 17, supported by weaker US retail-sales data that reduced expectations of a Federal Reserve rate increase. Technology and resource shares led gains, while higher oil prices and geopolitical uncertainty kept trading cautious.
Asian Market Performance
Asian equities moved higher for a fourth consecutive session. MSCI’s broad Asia-Pacific index excluding Japan rose 0.5%, while Japan’s Nikkei 225 gained 0.7% to 69,220.25. The advance followed data showing Japan’s economy expanded at a 1.1% annualised pace in the second quarter.
Chinese shares were among the strongest performers. The Shanghai Composite added 1.4% to 3,982.65, while Hong Kong’s Hang Seng Index rose between 1.3% and 1.6%. Investors focused on forthcoming Chinese activity data and the prospects for further policy support.expressnews+1
Australia’s S&P/ASX 200 fell 0.5%, while India’s Sensex slipped 0.3%. South Korean markets were closed for a public holiday.
European Market Performance
European equities opened slightly higher. The pan-European STOXX 600 gained 0.2% to 659.30, supported by basic-resources shares, which rose 1.4% as gold prices advanced and the US dollar weakened. Technology stocks added 1.1%, while energy shares rose 0.3% alongside crude oil.
Germany’s DAX traded close to unchanged, reflecting investor caution after recent gains and uncertainty about the European industrial outlook. France’s CAC 40 slipped 0.1%, weighed down by selective profit-taking in consumer and defensive stocks.
The pan-European mood remained moderately positive as investors responded to expectations that the US Federal Reserve may keep interest rates unchanged in September. Lower rate-hike expectations tend to support equity valuations, particularly for technology and growth-oriented sectors.
Food and beverage stocks were the weakest segment, declining 0.7%. The sector faced pressure from concerns about consumer spending, input costs and weaker retail demand. Investors are also monitoring upcoming earnings reports and inflation data for clues on whether European households can sustain consumption amid high borrowing costs and persistent price pressures.
Market Outlook
Investor attention now turns to US Federal Reserve minutes, major US retailer earnings and inflation data. With the S&P 500 close to record levels on Friday 14 August, lower rate-hike expectations continue to support equities, but oil prices and consumer-spending risks may limit further gains.
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© Copyright 2026 – Eurasia Business News. Article no. 3096
Eurasia Business News 