5 December 2025
US stocks traded mixed on Thursday ahead of the PCE inflation report. The S&P 500 ended 0.1% higher.
US Treasuries fell with 10-year yields ending 4bp higher at 4.10%.
European stocks rose on Thursday amid market expectations of a Fed rate cut next week. The Euro Stoxx 50 closed 0.4% higher. The German DAX gained 0.8% and the French CAC rose 0.4%. In the UK, the FTSE 100 nudged 0.2% higher.
European government bonds mostly fell. 10-year German bund yields rose 2bp to 2.77% and 10-year French bond yields rose 3bp to 3.52%. 10-year UK gilt yields edged down 2bp to 4.43%.
Asian stock markets traded mixed on Thursday, with the US rate outlook remaining in focus. Japan’s Nikkei 225 surged 2.3%, led by gains in tech and financial stocks, while Korea’s Kospi retreated 0.2% following recent gains. China’s Shanghai Composite edged down 0.1%, whereas Hong Kong’s Hang Seng rose 0.7%. Elsewhere, India’s Sensex rose 0.2%.
Crude oil prices rose on Thursday. WTI crude for January delivery settled 1.2% higher at USD59.7 a barrel.
No major releases.
The Reserve Bank India is expected to deliver a 25bp rate cut, amid lingering growth concerns and soft inflation figures.
In the US, the University of Michigan consumer confidence index has fallen steadily since the summer. Worries about unemployment have risen.
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