📆 Tuesday, November 12
► European markets opened lower and strongly undperformed with in particular the French CAC falling more than 1.1% as uncertainties around President-elect Trump’s policies and cabinet picks intensified. The Stoxx Europe 600 index trades 0.9% lower, reflecting investor caution as concerns grew about new tariffs and inflation pressures in the U.S. The German inflation rate for October rose to 2% (= ECB target and confirming preliminary data), indicating increasing price pressures, while the UK’s unemployment rate edged up to 4.3%, missing estimates. Investors are increasingly focused on the potential for Trump’s policies to lead to stronger U.S. inflation, which could ripple through to the Eurozone. Some European sectors with high export exposure, particularly technology and manufacturing, saw larger declines on fears that new U.S. tariffs could hurt European exports in particular France and Germany. The ZEW Economic Sentiment Indicators for Germany and the Eurozone showed increasing nervousness with regard to the economic outlook of the German/Eurozone economy.
► In the U.S., stock futures are steady in early trading, following Monday’s gains that saw the S&P 500 and Dow Jones hit new records. While U.S. equities remained buoyant, concerns over upcoming inflation data and further Federal Reserve commentary kept some investors on the sidelines. US Treasury yields rose, with 10-year yields reaching 4.34% (+ 4 bps for the US 10-y). This reflects anxiety over potential inflationary impacts from Trump’s tax cuts and tariff policies, which may lead investors to shift into safer assets. Markets are bracing for Wednesday’s Consumer Price Index (CPI) release, as a higher reading could pressure the Fed to adjust its easing stance more cautiously.
Subscribe to see more
