International News 26 September 2025
-
Gold Prices Slip as Strong Dollar Weighs, Markets Eye U.S. Data
Gold prices retreated from record highs on Wednesday (Sept 24, 2025) as the U.S. dollar strengthened and Treasury yields ticked higher. Spot gold fell 0.7% to $3,736.16 per ounce, after briefly hitting an all-time high of $3,790.82 the day before, while December gold futures dropped 1.2% to $3,768.1. A 0.6% rise in the U.S. dollar index made bullion more expensive for holders of other currencies, dampening momentum despite ongoing geopolitical tensions and uncertainty around Federal Reserve policy. Investors are now focused on upcoming U.S. economic data, including weekly jobless claims on Thursday and the core Personal Consumption Expenditures (PCE) index on Friday, the Fed’s preferred inflation gauge. Market expectations, according to CME FedWatch, still point to two additional rate cuts of 25 basis points in October (94% probability) and December (77%). While Fed Chair Jerome Powell reiterated Tuesday that the central bank must balance persistent inflation risks with slowing labor markets, he gave no fresh signals on timing. Meanwhile, safe-haven demand remains underpinned by geopolitical risks, as Ukraine confirmed strikes on Russian oil facilities, keeping gold attractive in a low-rate environment despite short-term profit-taking.
Japan’s Manufacturing PMI Hits Six-Month Low, Services Remain Resilient
Japan’s manufacturing sector contracted at the fastest pace in six months in September 2025, as the S&P Global Manufacturing PMI fell to 48.4 from 49.7 in August, marking the weakest reading since March. Output and new orders both slipped, with companies citing cautious inventory policies and weak demand. Export orders, however, showed a slower rate of decline compared to August’s 17-month low. Meanwhile, input price inflation eased to its lowest since early 2021, though output prices continued to rise modestly. In contrast, the services sector maintained solid growth, with the PMI at 53.0 in September, only slightly down from 53.1 in August, reflecting robust domestic demand. Employment in services improved slightly, offsetting job losses in manufacturing, which fell for the first time since November last year. As a result, the composite PMI slipped to 51.1 from 52.0, signaling the slowest pace of overall business activity growth since May. Analysts noted that services remain Japan’s key growth driver, helping cushion the downturn in manufacturing amid global trade uncertainties and U.S. tariff risks.
Oil Prices Ease After Seven-Week Highs Amid Supply and Geopolitical Factors
Oil prices edged lower on Thursday (Sept 25, 2025) as investors locked in profits following a sharp rally the previous session. Brent crude for November delivery slipped 0.26% to $69.13 per barrel, while WTI for November fell 0.31% to $64.79. Both benchmarks had surged 2.5% a day earlier on the back of an unexpected U.S. crude stock drawdown and concerns over escalating Ukrainian drone strikes on Russian energy infrastructure, which threaten supply stability. Analysts noted the pullback was largely technical profit-taking after crude tested the upper bound of its recent trading range. The U.S. Energy Information Administration reported a surprise draw of 607,000 barrels for the week ending Sept 19, defying forecasts for a build, while API data had signaled an even larger decline of 3.8 million barrels. Despite easing demand concerns as peak summer usage winds down, Haitong Securities highlighted resilient fundamentals with no significant downside pressure yet evident. Meanwhile, J.P. Morgan estimated global oil demand growth at 800,000 barrels per day through Sept 23, close to its earlier forecast of 830,000 bpd, with total demand averaging 104.4 million bpd. While geopolitical risks in Russia and the Middle East remain a supportive factor, the broader outlook hinges on whether oversupply pressures materialize in coming months.