The Ranges Letter – Morning Version – Market Information – 12 August 2025

2nd Version | Wednesday, August 12, 2025

Asia-Pacific Threat-On Tone to Set the Stage for London Forward of CPI,  Key Focus:  Asia-Pacific handover, London open positioning, U.S. CPI danger occasion

📌Asia-Pacific Session – Constructive Handover, Threat-On Sentiment

The risk-on bias in Asia-Pacific fairness markets is delivering a constructive handover to Europe, pushed by resilient company earnings momentum, stabilising commerce sentiment, and selective capital inflows into cyclical sectors.

• Nikkei 225: +2.45% — Broad-based beneficial properties, with industrials and expertise main on stronger export demand expectations.
• Nifty 50 (India): +0.91% — Home consumption resilience and overseas shopping for underpinning the transfer.
• S&P/ASX 200 (Australia): +0.13% — Financials and power offsetting softer supplies efficiency.
• Hold Seng (Hong Kong): –0.10% — Revenue-taking in property shares overshadowing power in large-cap tech.

This backdrop positions the London open to observe the constructive directional lead from Asia by means of the morning session, significantly in cyclicals and exporters.

📌London Open — Asia’s Momentum in Management Till CPI

With U.S. CPI knowledge scheduled for 14:30 (+2 GMT), the London session is anticipated to initially commerce on the Asia-Pacific impulse:

1. Directional Lead: Threat-on sentiment and constructive flows from Asia more likely to carry over into Europe’s early hours.
2. Sector Rotation: Energy anticipated in industrials, exporters, and power names; defensives might lag within the first half of the day.
3. Pre-CPI Threat Administration: Approaching noon, buying and selling exercise might reasonable as individuals sq. positions forward of the U.S. knowledge.

Base Case: Constructive open with regular danger urge for food sustained by means of the London morning.
Threat Case: Any deterioration in geopolitical sentiment or surprising macro headlines may dampen the Asia-led momentum earlier than the CPI launch.

📌U.S. CPI — The Defining Catalyst for the U.S. Session

• Consensus: Headline CPI +2.8% YoY; Core CPI +0.3% MoM.
• Market Pathways:
  • Beneath Consensus: Fuels expectations for a September Fed minimize; potential acceleration in Russell 2000 and cyclical fairness outperformance.
  • Above Consensus: Delays easing expectations; possible rotation again to defensives, pressuring higher-beta indices and commodities.

Given its timing, Europe shall be open for the primary wave of response, with the London afternoon doubtlessly experiencing abrupt reversals relying on the print.

Index & Asset Watch

📌Key Takeaway

The risk-on posture in Asia-Pacific is anticipated to be the first driver of European fairness route into the London noon, after which U.S. CPI at 14:30 (+2 GMT) turns into the dominant catalyst shaping world flows into the U.S. shut.