📆 Tuesday, December 17
► European markets extend their losing streak, with the Stoxx Europe 600 slipping 0.3% for the fifth time in six sessions. Investors opted for caution as they await key monetary policy decisions from central banks this week, most notably the U.S. Federal Reserve and the Bank of Japan. The UK unemployment rate remained steady at 4.3% in October, in line with expectations, but this provided little relief to markets as broader concerns about economic stagnation weighed on sentiment. Energy and financial stocks led the decline, reflecting the pressure from slowing economic momentum and year-end position trimming. Concerns of US tariffs continue to weigh on the export oriented European economy.
► US markets were mixed after Monday’s strong performance, which had brought the Nasdaq 100 to a new record high, boosted by Big Tech’s outperformance. On Tuesday, futures for the S&P 500 fell 0.2%, while Nasdaq futures rose over 1%. SoftBank Group shares jumped over 4.4% after the announcement of a $100 billion investment in the U.S, particularly in the AI sector. The Federal Reserve is widely expected to cut rates, while money markets currently price in an 80% chance of three Fed rate cuts in 2025, though the prospect of fewer reductions has introduced uncertainty. Treasury yields reflected the cautious sentiment, with the 10-year yield rising by 2 basis points to 4.42%. While AI-driven optimism and falling rates have fueled U.S. market gains throughout the year, investors are trimming positions ahead of the holidays and the Fed’s final decision for 2024.
Subscribe to see more