Global markets started the week on a mixed note as investors weighed currency fluctuations, regional divergences, and sector-specific pressures. While some indices across the Americas and Asia managed to stay in positive territory, European benchmarks struggled under the weight of currency weakness and cautious sentiment. Meanwhile, Tel Aviv stocks ended Monday in the red, reflecting domestic headwinds. Here’s a complete breakdown of August 18 performance and what to watch for on August 19.

Americas: Gains in Brazil and Small-Cap Rally, but U.S. Blue Chips Struggle

In the Americas, trading was mixed with a clear divergence between small caps, tech-heavy indices, and the broader U.S. benchmarks.

• IBOVESPA climbed +0.72% to 137,321.64, supported by gains in energy and banking names.
• The Russell 2000 rose +0.35% to 2,294.47, showing resilience in U.S. small-cap stocks.
• Canada’s S&P/TSX Composite edged up +0.06% to 27,922.85, helped by commodity-linked shares.
• The Nasdaq barely moved, adding +0.03% to 21,629.77, while the S&P 500 slipped -0.01% to 6,449.15.
• The Dow Jones Industrial Average weakened -0.08% to 44,911.82, with defensive sectors underperforming.
• The VIX volatility index eased -0.66% to 14.99, signaling stable risk appetite.
• The U.S. Dollar Index strengthened modestly +0.04% to 98.21, maintaining pressure on global currencies.

The overall U.S. market showed indecision ahead of fresh corporate earnings and macroeconomic data later this week.

Europe: Broad Losses as Currencies Weigh

European equities were under pressure Monday as currency volatility added to concerns about slowing momentum in the region.

• FTSE 100 managed a mild gain of +0.21% to 9,157.74, supported by energy shares.
• DAX P slipped -0.18% to 24,314.77, while CAC 40 dropped sharply -0.50% to 7,884.05.
• The EURO STOXX 50 fell -0.26% to 5,434.64, with banks and industrials weighing on sentiment.
• The MSCI Europe index retreated -0.34% to 2,456.04.
• The Euro Index weakened -0.30% to 116.65, while the British Pound Index dropped -0.36% to 135.07.

With currency markets showing weakness across both the euro and the pound, investors remained defensive heading into Tuesday.

Asia: China and India Lead Modest Gains, Japan and Australia Retreat

Asian markets were mixed, with some strength in Chinese and Indian equities but weakness in Japan and Australia.

• Shanghai Composite (000001.SS) rose +0.30% to 3,739.26, reflecting optimism in domestic consumption.
• S&P BSE SENSEX advanced +0.27% to 81,491.11, another record-high close.
• Hang Seng gained +0.14% to 25,211.62.
• Nikkei 225 fell -0.16% to 43,646.47, while KOSPI lost -0.31% to 3,167.55.
• S&P/ASX 200 retreated -0.74% to 8,892.80, weighed by commodity price weakness.
• Japanese Yen Index slid -0.52% to 67.67, highlighting ongoing currency challenges.
• The Australian Dollar Index dipped -0.19% to 64.94.

The region reflected cautious optimism, though currency pressures and weak external demand remain headwinds.

Tel Aviv: Local Indices Under Pressure

Israeli equities ended Monday in negative territory, reflecting cautious trading volume across leading indices.

• TA-35 slipped -0.10% to 2,986.60, with 16 gainers versus 17 decliners.
• TA-90 dropped -0.38% to 3,287.98, as mid-cap stocks faced selling pressure.
• TA-125 fell -0.20% to 3,050.07, while the TA Banks Index posted a sharper decline of -0.90% to 3,407.49.
• Bond indices were steadier, with the All-Bond General Index up +0.05% to 410.97.

Trading activity highlighted a defensive tone ahead of local earnings updates and global macroeconomic drivers.

Outlook for Tuesday, August 19, 2025

As markets open for Tuesday, investors are looking at a packed agenda. In the U.S., upcoming housing data and retailer earnings could shape sentiment. European markets will continue to track currency moves, while in Asia, China’s economic updates may provide direction.

For Tel Aviv, traders will be watching whether the TA-35 can hold above the key 2,980 level amid global uncertainty. Bond markets could remain a stabilizing factor.

Overall, expect cautious but selective buying opportunities on August 19, with traders balancing global volatility against domestic fundamentals.