Global and Luxembourgish News 18.-25. August 2025
Week 34: Financial markets tread lightly amid inflation worries and Fed ambiguity, while Luxembourg demonstrates resilience with milestones in green finance and housing activity. Let’s break it down.
Luxembourgish News
Luxembourg’s green funds dominate European sustainable finance landscape
Picture: Stock Library
By the end of June 2025, Luxembourg housed 61 percent of its UCI assets in Article 8 light green funds and 3 percent in Article 9 dark green funds, outpacing many European peers. Moreover, the country holds 35 percent of Article 8 and 54 percent of Article 9 assets across Europe, underscoring its leadership in sustainable finance. Over half of these green funds target social objectives or climate change mitigation. Luxembourg increasingly defines itself as the European hub for ESG investment and impact-oriented finance.
Source: STATEC
Mortgage approvals surge 33 percent in Q2 signaling housing recovery
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Luxinnovation has received an unprecedented 490 applications for the 16th edition of its flagship startup acceleration program Fit 4 Start. This marks the highest level of interest in the initiative to date, reflecting growing demand for tech innovation and entrepreneurial support in Luxembourg and beyond. Participating startups span sectors such as sustainability, fintech, and healthtech, underscoring diversified growth. Selected teams will receive coaching, funding, and access to investor networks across Europe. This surge in applicants highlights Luxembourg’s expanding reputation as a startup hub in the region.
Source: STATEC
Global News
Asia stocks rally on renewed Fed rate cut hopes ahead of Nvidia earnings
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Asian equities rose sharply as investors responded to dovish signals from Fed Chair Powell, putting approximately an 84 percent chance on a rate cut in September, with expectations for more easing into mid-2026. Treasury yields and the U.S. dollar softened, bolstering global corporate earnings prospects. All eyes now turn to Nvidia’s earnings report, which is forecast to show a 48 percent increase in earnings per share—a key event that could further drive market direction. Market optimism is tempered by caution as underlying growth indicators show signs of weakening.
Source: Reuters
Global equity fund inflows slump amid tech sell-off and bearish sentiment
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Global equity funds attracted just $2.3 billion in inflows for the week ending August 20—down sharply from $19.3 billion the week before. U.S. equity funds saw $2.4 billion in outflows, while European and Asian equities slowed to $4.2 billion and $70 million inflows respectively. In contrast, bond funds drew $18.8 billion, with money market and high-yield bonds also seeing rising interest. This shift reveals investor caution amidst tech sector volatility and the uncertainty surrounding U.S. monetary policy.
Source: Reuters
Central bankers warn of political pressures undermining Fed independence
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At the Jackson Hole symposium, central bankers from across the globe expressed concern over mounting political interference in the U.S. Federal Reserve. Ongoing pressure to reshape the Fed’s leadership and mandate raises questions about its independence—a cornerstone for global monetary stability. Several delegates emphasized that erosion of central bank autonomy could unsettle markets and diminish long-term credibility. Maintaining institutional neutrality, they stressed, remains critical amid rising geopolitical polarization.
Source: Reuters
