📆 Thursday, December 5
► European markets faced a mixed start as traders digested the collapse of France’s government. Euro Stoxx 600 futures rose by 0.3%, reflecting broader caution, led by travel and banking stocks. Industrial production data painted a varied picture: Germany reported a 1.5% drop in factory orders for October, while French industrial output eased its decline to just 0.1%. Political uncertainty loomed large as Marine Le Pen's far-right coalition and left-wing groups voted to remove Prime Minister Michel Barnier’s administration, raising questions about France’s economic trajectory. Corporate developments provided some optimism; Shell and Equinor announced a joint venture to form the UK’s largest independent oil and gas producer, bolstering energy sector stocks.
► US markets showed resilience following a stellar rally driven by the ongoing positive momentum and optimism about more rate cuts following Federal Reserve Chair Jerome Powell’s remarks. Powell highlighted the economy’s “remarkably good shape” and hinted at cautious rate adjustments, reinforcing market confidence. US stock futures are slightly lower after Wednesday’s record highs; the S&P 500 is little changed at -0.05% while the Nasdaq eased 0.15%, respectively. Treasury yields edged higher, with the 10-year yield reaching 4.21% (+3 bps). Investors are now eyeing Friday’s non-farm payrolls for signs of labor market strength, a key determinant of the Fed’s December policy decision.
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