European bourses tracked evenly midday Tuesday as traders awaited the Federal Reserve's rate decision on Wednesday, and weighed recent advances in benchmark bond yields. Food and bank stocks edged higher on continental trading floors, while retail shares lagged. Investors also eyed muted Wall Street futures and generally softer closes overnight on Asian exchanges.
Dec 9 - What matters in U.S. and global markets today. By Mike Dolan, Editor-At-Large, Finance and Markets. Fed week got off to a rocky start in global markets, courtesy of bond market hits across the world, but government debt yields stabilized on Tuesday as the Federal Reserve started its two-day meeting.
By Mike Dolan. Dec 9 - What matters in U.S. and global markets today By Mike Dolan, Editor-At-Large, Finance and Markets Fed week got off to a rocky start in global markets, courtesy of bond market hits across the world, but government debt yields stabilized on Tuesday as the Federal Reserve started its two-day meeting.
The S&P 500 ended Tuesday's session slightly lower as investors anticipated that the Federal Reserve would take a hawkish tone even if it cuts interest rates this week, while JPMorgan was the heaviest drag on the benchmark index after the biggest U.S. bank warned of hefty expenses for 2026.
* Futures up: Dow 0.06%, S&P 500 0.09%, Nasdaq 0.09% U.S. stock index futures were flat on Tuesday as investors remained cautious a day ahead of a long-anticipated monetary policy decision by the Federal Reserve, while Nvidia (NVDA) gained after the chip giant received approval to sell some of its processors to China.
Futures for Canada's main stock index were little changed on Tuesday, supported by higher precious metal prices, as investors remained cautious ahead of the outcome of the two-day U.S. Federal Reserve policy meeting tomorrow. Futures on the S&P/TSX Composite Index were flat at 1830.80 points as of 05:33 a.m. ET.
The European Central Bank will propose simplifying rules on capital buffers required of banks, pruning some of the complex regulation put in place after the global financial crisis, two sources familiar with the proposals told Reuters.
* Markets price in just a 5% chance of a rate cut in summer 2026. * Main driver of bond selloff is the hike premium, says Citi. * Fed could deliver some hawkish signals after the expected cut. By Stefano Rebaudo.
The final U.S. Federal Reserve meeting of the year this week precedes a turbulent 2026 that will see key policymaker changes, including the arrival of a new leader to be named by President Donald Trump, and tests of its independence amid legal and political pressure.
The Australian dollar strengthened overnight Monday following the Reserve Bank of Australia's latest policy meeting, said MUFG. It helped lift the AUD/USD rate to within touching distance of 0.6650 and extended the Australian dollar's position as the best-performing G10 currency so far this month, wrote the bank in a note to clients.
Bond investors are positioning for a shallow easing cycle from the Federal Reserve as it gears up for its final policy meeting of 2025, reducing exposure to long-duration Treasuries and rotating into intermediate maturities for juicier returns.
Asian stock markets traded mixed on the low side Tuesday, as traders weighed overnight declines on Wall Street, and signals from Beijing while awaiting the latest monetary policy announcement and outlook by the US Federal Reserve due Wednesday. Tokyo finished marginally in green, while Hong Kong and Shanghai lost ground.
* Investor confidence brittle after earthquake strikes Japan. * U.S. Treasury bonds stabilise after three-day selloff. * Yen firmer after 5-year JGB auction attracts bids. By Gregor Stuart Hunter and Lucy Raitano.
* Investors cautious ahead of central bank meetings. * Fed rate cut all but certain, focus moves to rates outlook. * Yen steady after Japan earthquake, limited impact. By Alun John and Ankur Banerjee.
* Analysts expect 'hawkish' US interest rate cut. * FOMC policy meeting on December 9-10. By Arunima Kumar and Pablo Sinha. Gold rose on Tuesday as investors positioned for the widely expected December Federal Reserve rate cut, even as attention shifted to whether policymakers will signal a slower easing path when their two-day meeting begins later in the day.
South Africa's consumer confidence improved in the fourth quarter to hit its highest reading for 2025, helped by consumers' appetite to spend into the holiday season, a survey showed on Tuesday. The consumer confidence index, sponsored by First National Bank and compiled by the Bureau for Economic Research, improved to -9 points from -13 points in the third quarter.
* Stocks down 0.6%, currencies flat. * US will allow Nvidia (NVDA) to export H200 processors to China. * Analysts weigh next Fed move after December cut. By Niket Nishant. Emerging market stocks slipped on Tuesday as investors hunkered down ahead of a widely expected interest rate cut by the Federal Reserve, turning their attention to whether policymakers will pair the move with hawkish guidance.
Euro zone government bond yields were little changed on Tuesday as investors took a breather after pricing out a European Central Bank rate cut for 2026 on Monday. That day, German 30-year yields had hit their highest levels in more than 14 years, as long-dated debt came under global pressure on worries over rising fiscal spending and heavier bond supply.
China's Premier Li Qiang on Tuesday urged trading partners to reject rising protectionism, a day after the world's second-largest economy posted a record $1 trillion trade surplus driven by a rush of exports to non-U.S. markets.
European Central Bank hawks determined to resist further interest rate cuts are starting a drumbeat for future tightening by conjuring up a new specter: passive policy easing. ECB board member and renowned hawk Isabel Schnabel spooked the bond market on Monday by saying the next move in euro interest rates is more likely to be up - even if not on the immediate horizon.
* US 10-year Treasury yields hit near 2-1/2-month high on Monday. * Analysts expect 'hawkish' US interest rate cut. * 10. By Ishaan Arora. Dec 9 - Gold edged down on Tuesday as investors, having mostly priced in a Federal Reserve rate cut, looked ahead for clues that the U.S. central bank might opt for a gentler-than-expected easing cycle when its two-day policy meeting begins later in the day.
* Investors cautious ahead of central bank meetings. * Fed rate cut all but certain, focus moves to rates outlook. * Yen steady after Japan earthquake, limited impact. By Ankur Banerjee.
A look at the day ahead in European and global markets from Ankur Banerjee. Markets are getting anxious about the U.S. monetary policy outlook ahead of an expected rate cut from the Federal Reserve this week, with a divided central bank and the prospect of a dovish successor to Fed Chair Jerome Powell keeping investors on edge. Welcome to almost-Fed day!
A look at the day ahead in European and global markets from Ankur Banerjee. Markets are getting anxious about the U.S. monetary policy outlook ahead of an expected rate cut from the Federal Reserve this week, with a divided central bank and the prospect of a dovish successor to Fed Chair Jerome Powell keeping investors on edge. Welcome to almost-Fed day!
Yields on 20-year Japanese government bonds rose to a record high on Tuesday with investors remaining concerned about the new government's fiscal policy, while also girding for higher Bank of Japan policy rates. The five-year JGB yield hovered near a 17-year peak after demand at an auction of the notes came in slightly weaker than the previous sale a month ago. Bond yields rise when prices fall.
* Investor confidence brittle after earthquake strikes Japan. * U.S. Treasury bonds stabilise after three-day selloff. * Yen firmer after 5-year JGB auction attracts bids. By Gregor Stuart Hunter. SINGAPORE, Dec 9 - The Australian dollar strengthened after the Reserve Bank of Australia kept rates on hold, as markets counted down to the U.S. Federal Reserve's policy meeting later this week.
* US 10-year Treasury yields rise to near 2-1/2 high on Monday. * Analysts expect 'hawkish' US interest rate cut. * 10. By Ishaan Arora. Dec 9 - Gold traded flat on Tuesday as investors had largely priced in a Federal Reserve rate cut, while bracing for signals that the U.S. central bank may pursue a milder-than-expected easing cycle at its two-day policy meeting starting later in the day.
* RBA leaves cash rate at 3.60%, says inflation risks tilt upward. * Domestic demand stronger than expected, adding to capacity pressures. * Bullock rules out cuts, future decision between long hold or hike. By Stella Qiu and Wayne Cole.
* China's Li Qiang says global economy under pressure from tariffs. * Urges IMF, World Bank, WTO chiefs to act to protect free trade. * Analysts say China's $1 trln trade surplus is driving tariff use. * Pressure on China to reform to boost share of global consumption. By Joe Cash.
Gold edged higher on Tuesday, even as investors pulled back slightly on U.S. rate cut bets, reflecting caution that the Federal Reserve could strike a more hawkish tone on next year's monetary easing at its upcoming policy meeting. FUNDAMENTALS. * Spot gold rose 0.1% to $4,194.83 per ounce as of 0146 GMT. * U.S. gold futures for December delivery rose 0.2% to $4,223.60 per ounce.
Most major stock indexes dipped, while the dollar and U.S. Treasury yields edged higher on Tuesday before a likely interest rate cut from the Federal Reserve but also possibly hawkish comments from policymakers. Treasury yields and the dollar gained after the release of U.S. labor market data, which showed U.S. job openings increased modestly in October while hiring remained subdued.
* Investors cautious ahead of central bank meetings. * Fed rate cut all but certain, focus moves to rates outlook. * Yen steady after Japan earthquake, limited impact. By Ankur Banerjee.
Oil prices steadied on Tuesday after slipping 2% in the previous session, as market participants kept a close eye on peace talks to end Russia's war in Ukraine and a looming decision on U.S. interest rates. Brent crude futures were down 2 cents, or 0.03%, to $62.47 a barrel at 0101 GMT.
The U.S. dollar advanced on Tuesday as better-than-expected job-market figures underscored a still resilient labor market ahead of the Federal Reserve's anticipated rate cut, with policymakers likely to emphasize inflation risks that could constrain further easing moves. Markets are also bracing for several more central bank decisions before the weekend.
* Investor confidence wary as tsunami warnings downgraded. * U.S. Treasury bonds stabilise after three-day losing streak. * Reserve Bank of Australia decision due at 0330 GMT. By Gregor Stuart Hunter.
Yields on five-year Japanese government bonds held near a 17-year high on Tuesday ahead of an auction of the notes and as investors priced in the likelihood of rate hikes by the central bank. Japanese markets were also on edge following damage reports from a powerful earthquake that struck the northeastern region of the country late Monday evening.
Financial pundits seem convinced that the new Federal Reserve chair will be an uber-dovish Donald Trump loyalist intent on slashing interest rates regardless of the economic fundamentals. Jerome Powell, whose eight-year term as Fed chair ends in May, is widely expected to be replaced by the President's top economic adviser Kevin Hassett. Hassett is undoubtedly a Trump loyalist.
Investor Michael Burry, known for "The Big Short," said on Monday he owns sizable positions in Fannie Mae and Freddie Mac and expects them to rise materially if the U.S. mortgage finance giants are taken public again through initial public offerings.
Investor Michael Burry, known for "The Big Short," said on Monday he owns sizable positions in Fannie Mae and Freddie Mac and expects them to rise materially if the U.S. mortgage finance giants are taken public again through initial public offerings.
* US stocks drop as investors wait for Fed rate decision. * Fed expected to deliver rate cut on Wednesday. * Rates set to stay on hold in Canada, Switzerland, Australia. By Caroline Valetkevitch.
Apprehension ahead of the Federal Reserve's policy decision later this week weighed on Wall Street on Monday, while continued selling in U.S. Treasuries pushed the 30-year yield to its highest in three months. More on that below. If you have more time to read, here are a few articles I recommend to help you make sense of what happened in markets today. Today's Key Market Moves.
Apprehension ahead of the Federal Reserve's policy decision later this week weighed on Wall Street on Monday, while continued selling in U.S. Treasuries pushed the 30-year yield to its highest in three months. More on that below. If you have more time to read, here are a few articles I recommend to help you make sense of what happened in markets today.
US equity indexes fell on Monday, taking a breather near record highs, as gains in government bond yields signal potential unease with policy guidance expected from the Federal Reserve by mid-week.
A 25-basis-point cut is almost fully priced for the Dec. 10 Federal Reserve meeting, with CME FedWatch data showing nearly a 90% chance for the third straight interest-rate reduction. Yet, some analysts are warning traders not to get overly excited about the move itself.
Canada's main stock index closed lower on Monday, weighed down by metal and mining shares and as investors booked profits while awaiting monetary policy decisions in the U.S. and Canada this week. Toronto's S&P/TSX Composite Index closed down 141.44 points, or 0.45%, at 31,169.97. The benchmark index posted a fresh record high on Thursday but ended the week lower.
Bond investors are positioning for a shallow easing cycle from the Federal Reserve as it gears up for its final policy meeting of 2025, reducing exposure to long-duration Treasuries and rotating into intermediate maturities for juicier returns.
The Toronto Stock Exchange fell for a second-straight session on Monday on fading expectations for an interest-rate cut this week from the Bank of Canada. The S&P Composite Index closed down 141.44 points to 31,169.97, continuing to drop off last Thursday's record high of 31,477.57. Most sectors were lower, with communication services, health care and materials leading the decliners.
Issuers mostly avoided pricing deals in the previous weeks the Fed met this year, but that's not the case this week, said Pat Luby, head of municipal strategy at CreditSights, and Wilson Lees, an analyst at the firm.
In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.
Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.
Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.
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