Financial Markets Daily Report
26 November 2025
Markets kept the positive tone on Tuesday, as Fed's Miran advocated for aggressive rate cuts. Separately, a flurry of US data suggested consumer fatigue (retail sales growth decelerated in September, and the Conference Board Consumer Confidence Index fell in November below expections), lifting expectations for a December rate cut and pushing Treasury yields lower.
Eurozone sovereign yields fell too, with peripheral spreads narrowing. In equity markets, the main global indices posted gains, although US indices swinged between gains and losses due to softness in the tech sector related to Google's new AI chips and their eventual impact on Nvidia's revenues
In the FX market, soft US data and higher expectations of a Fed rate cut pushed down the dollar, especially against the yen. In commodities, oil prices fell on news of advances in the peace talks in Ukraine. These developments also pushed European natural gas prices down, together with robust supply from Norway and via LNG, and expectations of milder weather ahead.