Financial Markets Daily Report10 desembre 2025
Investors traded cautiously ahead of today’s Fed meeting. Yesterday’s JOLTS report showed US job openings increased in October, indicating that the labor market isn't weakening abruptly and raising the risk that the Fed may strike a hawkish tone despite the widely expected rate cut later today. In response, Treasury yields edged higher and the dollar strengthened.
Euro area sovereign bond yields moved slightly lower, reversing part of the previous session’s rise triggered by hawkish remarks from ECB officials Isabel Schnabel and Peter Kazimir. Forward markets continued to price the ECB’s next policy move as a rate hike by mid-2027.
Global equity markets closed mixed. In the euro area, gains were led by German stocks, while France’s benchmark index underperformed. US equities finished the session largely unchanged. In commodities, oil prices edged lower as investors continued to assess the prospects for potential peace talks in Ukraine against a backdrop of ample global supply.