📆 Friday, November 15
► European markets faced headwinds with the Euro Stoxx 600 falling sharply then recovering some of the losses (now at -0.4%), reflecting concerns over the Federal Reserve’s cautious approach to rate cuts. French inflation edged higher to 1.2% in October (still below ECB target; Italian inflation at 0.9% up from 0.7%), while the UK reported sluggish Q3 GDP growth of just 0.1%, marking its weakest expansion in three quarters. The UK's production sector contracted by 0.2%, and monthly GDP dipped by 0.1% in September. These signals, combined with a rising trade deficit of £-3.46B, underscore lingering economic pressures in the region. Construction showed some resilience, expanding by 0.8%, but it wasn’t enough to offset broader concerns.
► US markets extended losses, with S&P 500 and Nasdaq futures down 0.55% and 0.80% (in pre-market trading), respectively, as investors digested Jerome Powell’s hawkish tone and two reports that showed that inflation in the US is picking up. Powell emphasized a measured approach to rate cuts, dampening hopes for a December policy easing. Meanwhile, Tesla and Rivian slumped after reports of Trump’s plan to eliminate EV tax credits, highlighting potential policy shifts that could impact growth sectors. Retail sales data and speeches by Fed officials later today could provide further clarity. The USD is set to gain nearly 1.5% for the week, supported by Trump’s election win and expectations of upcoming Trump policies (such as new tariffs and tax cuts).
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