Financial Markets Daily Report
05 December 2025
Investors traded cautiously as they positioned themselves ahead of the Federal Reserve meeting next week. US weekly unemployment benefit claims fell to a three-year low, casting some doubts over the Fed's willingess to lower rates. In this context, US treasury yields rose, equities were mostly flat, and the dollar edged higher against most peers.
Euro area sovereign yields rose in tandem with their US counterparts, boosted also by news that a group of young lawmakers from the CDU will vote against the government's pension bill. Fears did not spread to equity markets, where the region's main equity indices advanced, led by gain in Spain's Ibex-35.
In commodities, oil prices edged higher (with the barrel of Brent trading just above $63), as no further progress has been made regarding a possible Ukraine peace deal. Today's focus will be on US inflation and spedning data for September, which should add further clarity on the Fed's decision next week.