Financial Markets Daily Report
21 November 2025
Markets opened on a positive note after strong Nvidia earnings results, with a clear risk-on tone in Europe as equities rose and sovereign yields edged higher. But sentiment reversed sharply in the US after the European close, leading to a broad pullback in equities, with an intraday swing of nearly 5% in the Nasdaq, as the VIX hit its highest since April.
US Treasury yields fell along the entire curve as investors sought safe assets, while the US dollar was mostly flat against its main counterparts. Bitcoin fell below $90,000 for the first time since April, accumulating YTD losses over 7%. In Japan, government bond yields rose sharply following the approval an expansionary fiscal plan.
On the macro side, the US September employment report surprised positively, as the economy added 119,000 new jobs (vs. 51,000 expected). However, the unemployment rate ticked up to 4.4% (4.3% in August), the highest since 2021, as the labor force grew by 470,000 new entrants. The probability of a Fed cut in December sits around 30%.