Financial Markets Daily Report
04 December 2025
US Treasury yields dropped along the curve after the ADP survey showed an unexpected decrease of private payrolls in November, suggesting further weakness of the job market and consolidating views on a rate cut by the Fed next week. In consequence, the dollar depreciated against all its main peers.
Equities edged higher on a choppy session with no major economic news, in both Europe and the US. In Japan, Prime Minister Sanae Takaichi unexpectedly backed a rate hike after a meeting with the chief of the BOJ, Kazuo Ueda. Takaichi was known to oppose a rate hike until now. The yen strengthened in consequence.
In commodities, gas TTF prices barely reacted to news that the European Union reached an agreement to permanently stop using Russian gas by the end of 2027. Brent prices rose as Russia and the US failed to reach a peace agreement for the war in Ukraine and are settling now at $63/barrel.