Euro remains cautious as Middle East headlines, Fed outlook drive sentiment

• U.S. Secretary of State Marco Rubio met with counterparts from Japan and South Korea on Monday to discuss regional security ahead of a summit between Donald Trump and Xi Jinping. • The three nations explicitly expressed their support for Taiwan during the meeting.

• Indian equities reversed their morning gains on Tuesday, resulting in the Sensex falling 330 points and the Nifty closing lower. • Market sentiment was weighed down by a combination of F&O expiry, foreign outflows, geopolitical uncertainty, and elevated crude oil prices.

• Indian equity benchmarks ended their four-session winning streak on Tuesday as the Nifty closed below 23,350. • Selling pressure in IT, FMCG, and PSU bank stocks outweighed gains in the metal and realty sectors.

• Most Asian stock benchmarks rose early Tuesday following a positive rally on Wall Street. • South Korea's Kospi jumped 1.6% to 7,120.25, while Australia's S&P/ASX 200 added 0.2% to reach 8,748.20.

• Most Asian stock markets trended positive recently, with the exception of India. • China's Shanghai Composite index rose 0.1% to 3,951 points and Hong Kong's Hang Seng index increased 0.1% to 25,058 points, while India's Sensex index fell 0.3% to 74,461 points.

• The Indian stock market is entering a period of potential decline following a cycle of sustained price appreciation. • Long-term equity indices in India have historically grown at a rate of 12-14% over decades, while nominal GDP growth typically ranges from 10-12%.

• Asian stock markets rose on Tuesday following a rally in U.S. technology shares. • South Korea's KOSPI climbed 1.7%, while Taiwan's Weighted Index rose 1.5% and MediaTek surged more than 8%.

• U.S. President Donald Trump is scheduled to meet with the leaders of China, Britain, and Japan to discuss geopolitical and trade relations. • Trading will be disrupted over the next few days in Japan, South Korea, China, Taiwan, and Hong Kong due to the Mid-Autumn Festival and the autumn equinox.

• The European Central Bank warned on September 10 that a second wave of oil and gas price increases will likely keep inflation elevated for a longer period. • The bank now expects inflation to trend toward its target starting from mid-2027, reversing earlier market expectations that the energy shock would peak around June.

• European exchange-traded funds (ETFs) saw varied performance and capital movements between September 14 and September 18. • World equity ETFs led geographic inflows with €1.46 billion, while Health Care emerged as a top-performing sector with a 2.79% gain.

• European Central Bank Chief Economist Philip Lane stated that energy shocks could delay the return of inflation to the 2% target. • Lane noted that the European economy will expand steadily at a moderate pace provided these energy shocks ease.