DAX edges higher as Fed meets under Trump pressure

Germany’s DAX rose modestly while Asian equities hit new highs as the Federal Reserve began its September meeting, with markets pricing in a 25 bp US rate cut and some odds of 50 bp amid pressure from President Trump. The Senate confirmed Stephen Miran to the Fed’s Board, and an appeals court allowed Governor Lisa Cook to attend despite Trump’s bid to remove her. The dollar stayed soft ahead of the decision, while traders also watched UK wage figures and US retail sales later in the day.

Equities

The FTSE 100 slipped 0.1% on Monday as losses in heavyweight pharmaceuticals and a stronger pound weighed on the index. AstraZeneca fell 3.2% after Handelsbanken cut its rating and reports emerged that the company had paused a £200 million investment in its Cambridge research site. Sainsbury gained 3.5% to a four-year high after announcing it had ended talks with Chinese e-commerce group JD.com about selling its Argos business.

AO World jumped 14% after unveiling its first share buyback and lifting the lower end of its annual adjusted pre-tax profit forecast. Advertising group S4 Capital sank 21% to a record low after it downgraded its revenue outlook for the second time this year. The FTSE 250 added 0.1%, supported by strength in retail names and select industrial stocks.

On Wall Street, the S&P 500 advanced 0.47% to finish at 6,615.28, while the Nasdaq Composite gained 0.94% to 22,348.75, both ending the day at intraday record highs. The Dow Jones Industrial Average added 0.11% to 45,883.45.

Tesla rose 3.6% after regulatory filings showed that Elon Musk had bought almost $1 billion of stock on Friday, boosting the consumer discretionary sector to its strongest level in nine months. Alphabet also rallied, surpassing a $3 trillion market valuation for the first time and pushing the communication services sector higher.

Nvidia slipped 0.04% after China’s market regulator confirmed it would continue an anti-monopoly probe into the AI chip leader. Mid-cap CoreWeave jumped 7.6% following a $6.3 billion agreement with Nvidia under which the chipmaker will purchase any unused cloud capacity. The deal drew attention after short-seller Kerrisdale Capital disclosed a bearish position, though CoreWeave’s shares held their gains by the close.

Forex & Commodities

The dollar slipped broadly as investors looked ahead to the Federal Reserve’s policy decision. It fell to 1.1787 against the euro, its weakest since late July, and eased to 1.3624 against sterling, while touching 0.6677 versus the Australian dollar. The US currency also edged down to 146.98 yen. Traders are fully pricing a quarter-point US rate cut on Wednesday and see further reductions through January, after softer labour figures and calls from President Trump for more aggressive easing.

Spot gold traded at $3,680 per ounce after setting a record high of $3,689 earlier in the session, extending a sharp rise this year on strong investment demand and expectations of lower US rates. Analysts at an industry gathering in New Delhi said the metal could pause before resuming its climb towards $4,000 in 2026, while silver reached $42.50, its strongest level in 14 years.

Oil edged up on Tuesday, adding to Monday’s gains as markets weighed potential supply disruption from recent Ukrainian drone attacks on Russian refineries alongside prospects for a US rate cut. Brent crude stood at $67.52 a barrel and US West Texas Intermediate at $63.41. Official US inventory data due on Wednesday is expected to confirm a draw after a sharp build the previous week.