📆 Monday, December 9
European markets started the week cautiously, with the Stoxx 600 index trading flat amid ongoing geopolitical tensions and domestic uncertainties. The EUR fell slightly vs. other currencies, driven by its role as a proxy for risk in light of Syria's political upheaval. The collapse of Syria’s regime added to investor fears, alongside key political crises in South Korea, France, and Germany. In the economic news, expectations of further easing by the European Central Bank this week at least supported sentiment. With policymakers in Frankfurt facing pressure to deliver back-to-back rate cuts amid economic slowdowns in major economies like Germany and France, market participants are bracing for potential volatility.
► US markets are little changed as investors awaited critical US inflation data this week. The S&P 500 and Nasdaq futures are flat or marginally higher (0.0% – 0.10% “higher”), reflecting caution around potential market-moving announcements. Last Friday’s jobs report, which showed robust growth but slight cooling in the labor market, further strengthened the outlook for Fed cuts. The Federal Reserve’s December meeting looms, with markets expecting a 25 basis-point rate cut. Analysts (including SmartTrader chief analyst Robert Lindner) suggest that the Fed may adopt a more hawkish tone, signaling a potential slowdown in the pace of easing. Markets remain cautiously optimistic, with traders watching for opportunities amid volatility.
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