Financial Markets Daily Report16 December 2025
During yesterday's session, Government bond yields fell on both sides of the Atlantic ahead of several central bank meetings this week. The ECB meets on Thursday, with markets pricing an almost sure decision of keeping depo rate at 2%. Other banks meeting are the BoE (expected to cut to 3.75%) and the BoJ (expected to hike to 0.75%).
Investors will be attentive to today's release of the US employment data for October and November to continue to test the health of the job market. CPI figures are also released later this week. Both releases are key for future Fed decisions. US equity markets fell, weighed down by tech companies.
Euro area equity indices advanced with gains led by the financial and industrial sectors. The Spanish Ibex-35 outperformed. In commodities markets, Brent and Natural Gas prices fell on a potential peace deal between Russia and Ukraine, while Gold edged higher and is now trading over $4300/oz, close to historically-high prices of two months ago.