Klarna IPO surges on NYSE debut as global markets rally​

​​​Klarna soars on NYSE debut as markets ride global rally

​Klarna made a strong return to public markets, debuting on the New York Stock Exchange (NYSE) under the ticker KLAR. The Swedish payments firm priced its shares at $40, above the initial guidance of $35 -$37, raising nearly $1.4 billion and securing a valuation of just over $15 billion. The blockbuster listing is already being counted among the most closely watched fintech initial public offerings (IPOs) of 2025.

​The upbeat debut comes against a backdrop of strength in global equities. Wall Street closed at fresh record highs overnight, while Asian markets mirrored the optimism. Taiwan’s benchmark index surged to an all-time peak, Japan’s Nikkei 225 rallied back toward Tuesday’s historic levels, and gains were logged in South Korea, Hong Kong, and mainland China. European stock indices also pointed higher as investors leaned into risk assets.

​Fed remains at the centre of focus

​Meanwhile, the Federal Reserve (Fed) remains firmly in the spotlight. Former President Donald Trump’s effort to reshape the central bank’s board was dealt a blow after a judge temporarily blocked him from removing Governor Lisa Cook, leaving his preferred nominee, Stephen Miran, sidelined. Even so, mounting evidence of a softening US labour market has cemented expectations that the Fed will deliver policy easing at its upcoming 17 September meeting.

​What remains unclear is how the Fed will navigate the balance between supporting growth and keeping inflation under control. Traders are watching closely for producer price index (PPI) data today and consumer price index (CPI) data tomorrow, which could prove decisive. A hot inflation print would reignite fears of stagflation and potentially limit the scale of rate cuts.

​At present, markets are pricing in 66 basis points (bp) of easing by year-end, with CME FedWatch data showing a 8% probability of a larger 50 bp cut next week. Most investors still expect at least a quarter-point reduction, with sentiment buoyed by the belief that aggressive easing could stave off a US recession.

​Gold steadies while oil rallies amid geopolitical tensions

​Beyond monetary policy, commodities and geopolitics added to the market narrative. Gold steadied after touching a record high on Tuesday, while the US dollar was little changed in anticipation of US inflation data.

Crude oil extended gains following Israel’s strike on Hamas leadership in Qatar. Regional tensions also remained elevated after Poland and NATO scrambled air defences in response to Russian drone attacks on western Ukraine.