Financial Markets Daily Report03 diciembre 2025
US Treasury yields ended yesterday's session mostly flat after the large sell-off they suffered on Monday. The market-implied probability of a Fed rate cut next week continued to stand close to 100%. The Japanese 2Y yield topped 1% early this week, its highest value since 2008, on continued expectations of a rate hike in two weeks.
In the euro area, November figures for inflation came in slightly higher than expected, with a 2.2% increase year-over-year. This, along with an also higher-than-expected unemployment rate, did not move futures market expectations of interest rates for the December meeting (rate cut probability of 2%). The dollar continued to depreciate against the euro.
Stock markets advanced overall after the pause they experienced yesterday, buoyed by the rate cut expectations in the US. In commodities markets, Brent prices fell as concerns of oversupply weighed more than the setback in the peace talks between Russia and Ukraine.