📆 Wednesday, December 4
► European markets saw modest gains with the Stoxx Europe 600 index up near 0.3%, driven by retail and technology stocks. Despite mixed economic signals, France's CAC 40 added 0.35% despite political instability. Far-right leader Marine Le Pen and a left-wing coalition are anticipated to support a no-confidence vote, potentially jeopardizing President Macron's government. In economic data, composite and service PMIs from Spain, Italy, and Germany failed to meet expectations, highlighting continued economic challenges. While the Eurozone and France managed to meet forecasts, the indices still showed a decline, reflecting the region's sluggish momentum. Investor jitters were evident as French bonds opened lower. Meanwhile, the EUR has edged slightly lower, with traders awaiting Federal Reserve Chair Jerome Powell’s anticipated speech later today.
► US stock futures edged higher, as S&P 500 futures gained 0.25% following record-high closes for the Nasdaq and S&P 500 on Tuesday. Investors are keenly awaiting Powell's remarks and key data releases on services and manufacturing for clues on whether the Fed will cut rates in December. Treasury yields rose 2.5 BPs (10y), with the 10-year yield near 4.25%, as San Francisco Fed President Mary Daly hinted at uncertainty around immediate rate cuts. Market sentiment remained cautious amid mixed signals on the labor market and inflation.
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