Financial Markets Daily Report18 diciembre 2025
Financial markets had a mixed session on Wednesday. Eurozone sovereign yields edged higher, with curves steepening and peripheral spreads widening, even as the Ifo index surprised to the downside, signaling weaker business sentiment in Germany. Final CPI figures for November came in a tenth lower in the general year-on-year rate.
US Treasury yields moved moderately too and with a similar steepening of the curve. Fed Governor Waller, reportedly shortlisted to succeed Powell, capped short-term yields after stating the Fed still has room to cut rates amid a cooling labor market, estimating the economy is 50 to 100 basis points away from neutral.
Equity indices were mostly down across the Atlantic, with US benchmarks retreating the most after a tech-sector sell-off driven by doubts over data center investment and rising volatility. The dollar strengthened against peers, while oil rebounded after the US blocked sanctioned tankers in Venezuela, fueling concerns over supply disruptions.