🗓 Wednesday, December 10, 2025
► Europe mixed – low-volume trade as markets wait for Fed
European equities were broadly directionless as investors avoided large bets ahead of tonight’s Fed decision. Stoxx 600 +0.06%, DAX -0.51%, CAC 40 -0.27%, FTSE 100 +0.42%, FTSE MIB -0.29%, IBEX 35 +0.05%, SMI -0.11%. Sentiment stayed cautious after a strong run from late November pushed indices back toward record territory, with Trump’s latest criticism of “weak” European leaders adding a small political overhang. Banks traded slightly firmer, while individual names like Delivery Hero jumped after highlighting strategic options and a focus on “financial improvements.” EUR/USD 1.164 (+0.1%), GBP/USD 1.332 (+0.2%), EUR/GBP 0.874 (slightly softer).
► Wall Street on pause – third Fed cut priced in; Focus on dots, tone & 2026 path
US futures were flat as markets headed into the key Fed meeting with a roughly 90% chance of a third consecutive 25 bps cut already priced in. S&P 500 flat, Nasdaq 100 flat, Dow flat. The key question for traders is not IF the Fed cuts, but how strong Powell’s “hawkish cut” message will be: markets now see only around two additional cuts through 2026, and Fed speakers have signaled a high bar for further early-2026 easing. The 10Y yield pushed higher again to around 4.20%, extending the recent grind up in global yields as several central banks (RBA, ECB) hint their own easing cycles are near the end and the BoJ is expected to hike next week. Sector-wise, the broader indices were subdued, while small caps remain supported by the rate-cut story and AI-related tech (Nvidia, Broadcom, Oracle) stay in focus ahead of key earnings and guidance.
► Asia mixed – modest moves as region tracks Fed & bond market; no appetite to add risk
Asian markets traded in tight ranges, mirroring the global wait-and-see stance. Nikkei -0.10%, Kospi -0.21%, Taiwan +0.77%, HSI +0.42%, Shanghai -0.23%, Shenzhen +0.29%, Nifty -0.32%, ASX 200 -0.08%. China and Hong Kong saw selective interest in tech and policy-sensitive names but overall flows remained cautious despite domestic-demand pledges. Japan consolidated after its recent strong run, with BoJ uncertainty and higher global yields limiting upside. Overall, the region kept a mildly risk-on bias, but conviction remained low ahead of tonight’s Fed statement, dot plot and Powell’s press conference.
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