Financial Markets Daily Report17 December 2025
Financial markets had a mixed session on Tuesday. Sovereign bond yields fell on both sides of the Atlantic after a choppy session, driven by US employment figures distorted by the recent shutdown. The data showed job growth rebounded in November, while the unemployment rate rose in October following a methodological change due to the shutdown.
Eurozone sovereign yields declined following a slightly disappointing December PMI, with the composite index hitting a three-month low as France and Germany closed the year with weak momentum. Peripheral spreads narrowed in this context.
Equity indices fell in Europe but rose in the US, as the mixed labor report did not alter investors' expectations for the Fed’s decisions on interest rates. This also kept the dollar broadly flat against the euro, while the yen appreciated on hopes of a BoJ rate hike on Friday. In commodities, oil prices fell on oversupply concerns.