🗓 Wednesday, December 3, 2025
► Europe higher – risk sentiment improves
European equities traded modestly higher as global risk sentiment improved on rising Fed cut expectations and a further rebound in crypto. Stoxx 600 +0.15%, DAX +0.14%, CAC 40 flat, FTSE 100 -0.15%, FTSE MIB +0.55%, IBEX 35 +1.72%, SMI -0.27%. Gains were led by retail and utilities, while parts of fashion underperformed. Inditex +8.5% jumped after reporting strong nine-month results and a solid start to the autumn/winter and Black Friday season, with sales and margins both ahead of expectations. Hugo Boss -11% slumped after guiding to lower near-term sales and profit. Broader sentiment was supported by hopes for a year-end rally as December seasonality stays constructive. EUR/USD 1.167 (+0.4%), GBP/USD 1.331 (+0.7%).
► Wall Street firmer – stocks, crypto & bonds rally as weak ADP bolsters cut hopes
US equities are set for further gains as softer labor data reinforced expectations of a third straight Fed rate cut next week. S&P 500 futures +0.30%, Nasdaq 100 +0.25%, Dow +0.25%. ADP reported a surprising 32K drop in private payrolls for November (vs. +40K expected), with losses concentrated in small businesses, while recent government data already showed unemployment at an almost four-year high and ongoing layoff headlines. Markets now price close to a 90% probability of a 25 bps cut at the December 10 meeting, also helped by expectations of a more dovish successor to Powell. Tech and consumer names traded higher: Marvell +10% premarket on strong AI data-center guidance, Oracle firmer on a bullish AI-driven initiation from Wells Fargo, while Macy’s slipped slightly despite posting a surprise Q3 profit. Bond yields fell across the curve and the dollar weakened (DXY 98.95 -0.4%) as markets leaned further into the dovish narrative. Bitcoin extended its rebound above $93K, helping ease broader risk concerns.
► Asia mixed to higher – chip & AI names support gains; China drags
Asian markets posted a mixed but generally constructive session as investors responded to a weaker US labor print, higher Fed cut odds, and a continued crypto rebound. Nikkei +1.14%, Kospi +1.04%, Taiwan +0.83%, ASX 200 +0.18%, HSI -1.28%, Shanghai -0.51%, Shenzhen -0.78%, Nifty -0.18%. Taiwan and Korea outperformed, led by semiconductors and AI-linked tech as hopes for easier US policy and resilient AI demand supported risk appetite. Japan’s Nikkei rebounded strongly after recent volatility, while a softer yen (USD/JPY 155.4, -0.3%) provided an additional tailwind. Chinese equities underperformed, with growth and sentiment still weighed down by domestic macro concerns and weaker credit impulses.
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