Global stock markets showed a cautious but positive tone on September 26, 2025, as investors around the world balanced local developments with anticipation of key U.S. economic data. From Milan to Kuala Lumpur, market participants kept a close watch on the Federal Reserve’s next moves, while sector-specific stories and political headlines added their own twists to a day marked by measured optimism and persistent uncertainty.
In the United States, mortgage real estate investment trust Rithm Capital (NYSE:RITM) broke a six-session losing streak, closing up 0.17% at $11.62. While the uptick was modest, it was a welcome change for shareholders who had seen the stock slide 7.09% over the previous six trading days. According to Seeking Alpha, the rebound offered a glimmer of hope for the mortgage REIT sector, which has faced pressure from rising interest rates and uncertain economic signals in recent weeks. The broader context, of course, is a market that has been whipsawed by shifting expectations about Federal Reserve policy and the trajectory of U.S. inflation.
Across the Atlantic, the Milan Stock Exchange (FTSE MIB index) posted a 0.4% gain, with trading volumes reaching 1.25 billion euros. As reported by Reuters, the Italian market’s upward trend was buoyed primarily by financial stocks, which more than offset declines in the industrial sector. Insurance companies stood out, with Unipol jumping 1.8% and Generali rising 1.6%, leading a broadly positive session for the European insurance sector. Banks also attracted buyers, with Pop Sondrio up 1.5% and BPER up 1.4%, while Unicredit, Intesa Sanpaolo, and Mediobanca tracked the sector index.
But it wasn’t all smooth sailing. European tech stocks faced headwinds, with STM dropping 2% as the sector digested negative sentiment from Asian markets. The pressure was linked to news that the U.S. administration, under President Donald Trump, intends to sharply reduce reliance on foreign semiconductors—a move that could have far-reaching implications for European and Asian chipmakers alike. Meanwhile, Brunello Cucinelli shares were down 0.6%, though they managed to rebound from earlier lows not seen since December 2023. Investors remained wary about the company’s Russia-related issues and potential reputational risks, despite clarifications provided the previous day.
Market watchers in Milan also had an eye on Washington, where President Trump announced a new round of tariffs set to take effect October 1. The White House detailed sweeping new duties: 100% on branded pharmaceuticals, 25% on heavy trucks, 50% on kitchen and bathroom furniture, and 30% on upholstered furnishings. As strategists at MPS noted, it remains unclear whether these measures will also hit EU pharmaceuticals, which are already subject to a 15% agreement. For now, these trade moves have had little impact on European trading, but investors are well aware that the ripple effects could be felt in the weeks ahead.
Meanwhile, in Kuala Lumpur, the FBM KLCI index managed to reclaim the 1,600 level by midday, rebounding 7.07 points, or 0.44%, to 1,605.54. According to The Star, this put the index just shy of its intra-morning high of 1,605.93. Despite the rebound, market sentiment remained cautious, with decliners outnumbering gainers at 505 to 419 and 466 counters unchanged. Turnover was robust, with 2.3 billion shares traded for a total value of RM1.36 billion.
Among the top gainers in Kuala Lumpur were Malayan Cement, which rose 42 sen to RM7.15, Nestle up 38 sen to RM96.98, PETRONAS Dagangan adding 36 sen to RM22.48, and Kelington Group climbing 18 sen to RM5.68. But there were also notable losers: Ireka, facing the risk of delisting, plunged 79.17% to 2.5 sen, with a staggering 29.3 million shares changing hands. The sharp drop underscored the volatility that can grip individual stocks even as broader indices hold steady.
Analysts in Malaysia offered a measured outlook for the days ahead. Apex Securities anticipated that the FBM KLCI would remain cautious, tracking Wall Street’s losses and reflecting subdued regional sentiment ahead of the crucial U.S. core personal consumption expenditures (PCE) inflation reading. This data, due later in the day, is widely seen as the Federal Reserve’s preferred inflation gauge and could play a decisive role in shaping expectations for U.S. interest rates. "Domestically, the lead-up to Budget 2026 on Oct 10 is expected to drive local sectoral interest and shape sentiment in specific thematic plays," Apex noted, highlighting that construction, consumer, and renewable energy sectors might see increased attention as the budget announcement approaches.
TA Securities, another local brokerage, predicted that rangebound trading would likely persist ahead of the weekend as investors awaited the U.S. PCE data. The firm identified immediate resistance for the FBM KLCI at the December 2024 high of 1,644, with stronger hurdles at 1,684 and 1,695. On the downside, support was seen at the 61.8% Fibonacci retracement (1,564), with firmer support levels at the 50% retracement (1,527) and 38.2% retracement (1,490). Such technical analysis offered traders clear benchmarks, but the real driver remained macroeconomic uncertainty and global policy signals.
In Europe, strategists at MPS echoed the sentiment of waiting and watching, noting that investor attention was squarely focused on the upcoming U.S. economic data, especially the PCE index. The reading would be “crucial in determining the future path of interest rates,” especially after strong macroeconomic data the previous day had fueled concerns of a less dovish Federal Reserve.
All these developments unfolded against a backdrop of cautious optimism. While financial stocks and insurers in Milan led the charge, and select gainers in Kuala Lumpur provided bright spots, the mood across markets was one of careful positioning. Investors everywhere seemed to be holding their breath, waiting for the next big signal from the U.S. central bank.
As the closing bell approached on September 26, 2025, it was clear that global markets were being pulled in multiple directions—by local stories, sector-specific shocks, and the ever-present shadow of U.S. monetary policy. The day’s modest gains and losses served as a reminder that, in today’s interconnected world, even the smallest data point or policy change can send ripples across continents. For now, traders, analysts, and ordinary investors alike are keeping their eyes on the horizon, ready to react to whatever comes next.
