The morning market overview, compiled by Dow Jones Newswires:
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+++++ DAILY THEME +++++
The US Federal Reserve will announce one in the evening Interest rate cut by 25 basis points to 3.50 to 3.75 percent. The decisive factors are the recent deterioration in the labor market and weak economic data, even if there is more opposition to a reduction within the committee than at any time since 1992. The future leadership of the Fed is also increasingly coming into focus. While President Trump is seeking an early end to the Jerome Powell era, Kevin Hassett, current director of the National Economic Council, is seen as the most likely successor. Markets reacted with relief to this prospect, viewing Hassett as “loyal but credible.” At the same time, it is doubtful that Hassett would be able to implement aggressive interest rate cuts without fundamental data. The interest rate outlook for the coming year will be more important than the interest rate cut in December, which the markets have probably already priced in. Estimates here range from two to four further interest rate cuts. Accordingly, special information is provided monetary policy be observed in 2026.
+++++ COMPANY OUTLOOK ++++++
22:05 US/Oracle Corp, 2Q results
22:05 US/Adobe Inc, 4Q results
+++++ ECONOMIC OUTLOOK +++++
– US
14:30 Labor Cost Index 3Q
FORECAST: +0.9% qoq
2nd quarter: +0.9% qoq
8:00 p.m. Fed, FOMC meeting results
Fed Funds Target Rate (20:30 Pk Powell)
FORECAST: 3.50% to 3.75%
previously: 3.75% to 4.00%
– APPROX
15:45 Bank of Canada (BoC), Monetary Policy Council results
Overnight rate
FORECAST: 2.25%
previously: 2.25%
+++++ OVERVIEW INDICES +++++
INDEX last +/- %
E-Mini Future S&P-500 6,843.10 unv.
E-Mini Future Nasdaq-100 25,672.30 unv.
S&P/ASX 200 (Sydney) 8,579.40 -0.1%
Nikkei-225 (Tokyo) 50,602.80 -0.1%
Hang-Seng (Hongk.) 25,457.85 +0.1%
Shanghai Comp. 3,904.01 -0.1%
Kospi (Seoul) 4,135.00 -0.2%
+++++ FINANCIAL MARKETS +++++
EAST ASIA (HISTORY)
The majority of Asian stocks are standing still in the middle of the week. The US Federal Reserve’s interest rate decision in the evening is awaited with increased excitement. A large majority of the market expects a further interest rate cut of 25 basis points. Nevertheless, there is uncertainty about the Fed’s further monetary policy course. According to market experts, estimates range from two to four further interest rate cuts. Accordingly, particular attention will be paid to information on monetary policy in 2026. It could also be a very tight interest rate decision. The Chinese stock market is recording clearer negative signs. Chinese consumer prices rose for the second month in a row in November. The deflation producer prices, on the other hand, increased. In Tokyo, the Nikkei 225 fell 0.1 percent. Japanese inflation remained stubborn in November, fueling further speculation as to whether the Bank of Japan (BoJ) will soon raise interest rates. Most recently, BoJ Governor Kazuo Ueda said that the BoJ would consider the pros and cons of one at its meeting on December 18th and 19th Interest rate increase will discuss. The statements had led to increased nervousness on the markets.
WALL STREET
INDEX last +/- % absolute +/- % YTD
DJIA 47,560.29 -0.4% -179.03 +12.2%
S&P 500 6,840.51 -0.1% -6.00 +16.4%
NASDAQ Comp 23,576.49 +0.1% 30.58 +21.9%
NASDAQ 100 25,668.69 +0.2% 40.74 +22.0%
Tuesday Monday
Turnover NYSE (stocks) 1.09 billion 1.15 billion
Winner 1,496 937
Losers 1,239 1,821
Unchanged 111 90
Claimed – The wait before the Fed’s interest rate decision went into another round. The fact that the number of job vacancies in the US economy in September and October was higher than economists estimated did not affect the firm expectation of an interest rate cut, especially since the data was out of date. What will probably be more important than the actual interest rate move is whether and what signals the US central bankers give with regard to further interest rate policy. JP Morgan fell 4.7 percent. The bank expects higher expenses in 2026 than the market has previously calculated. Goldman Sachs rose 1.2 percent as investors from JP Morgan switched to the competitor’s shares. Nvidia came back by 0.3 percent. US President Trump has now announced permission to deliver a technically more sophisticated AI chip to China, but a 25 percent levy will be due to the state. In addition, Beijing has yet to give the green light. Boeing lost 2.8 percent after the aircraft manufacturer delivered few aircraft in November.
US BONDS
Yields moved little after the recent increase and on the day before the interest rate decision; in the ten-year range they rose by 1 basis point to 4.18 percent.
CURRENCY
FOREX last +/- % 00:00 Tue, 08:35 % YTD
EUR/USD 1.1634 0.1 1.1627 1.1640 +12.4%
EUR/JPY 182.32 -0.0 182.35 181.74 +11.4%
EUR/GBP 0.8741 -0.0 0.8741 0.8735 +5.6%
GBP/USD 1.3311 0.1 1.3300 1.3327 +6.5%
USD/JPY 156.71 -0.1 156.84 156.12 -0.9%
USD/KRW 1,469.97 0.1 1,469.03 1,469.10 -0.4%
USD/CNY 7.0705 -0.0 7.0740 7.0792 -1.8%
USD/CNH 7.0588 -0.1 7.0629 7.0698 -3.6%
USD/HKD 7.7817 -0.0 7.7824 7.7804 +0.2%
AUD/USD 0.6646 0.0 0.6643 0.6637 +7.1%
NZD/USD 0.5780 0.0 0.5779 0.5780 +3.2%
BTC/USD 92,680.10 -0.2 92,885.50 90,456.45 -4.1%
YTD based on the closing price of the previous day
The dollar trended sideways, the euro cost $1.1628 in late US trading.
++++ RAW MATERIALS +++++
METALS
METALS last day previous +/- % +/- USD % YTD
Gold 4,206.72 4,208.43 -0.0% -1.71 +59.7%
Silver 61.53 60.675 +1.4% +0.86 +101.4%
Platinum 1,439.26 1,458.14 -1.3% -18.88 +61.7%
Copper 5.25 5.24 +0.1% +0.01 +27.7%
YTD based on the closing price of the previous day
Gold prices rose 0.6 percent on expectations of a rate cut, making the precious metal more attractive as an investment compared to bonds.
OIL
CRUDE OIL last VT close +/- % +/- USD % YTD
WTI/Nymex 58.38 58.25 +0.2% +0.13 -18.3%
Brent/ICE 62.09 61.94 +0.2% +0.15 -16.6%
YTD based on the closing price of the previous day
After the significant decline the day before, oil prices fell further by almost 1 percent. Because peace in Ukraine is not expected in the short term, prices are unlikely to fall any further, it was said in the trade with a view to the continued existence of Western sanctions against the Russian oil industry.
+++++ REPORTS SINCE THE DAY BEFORE, 8:00 PM +++++
US MONETARY POLICY
As head of the US Federal Reserve, Kevin Hassett said he would not bow to political pressure and would rely on his own judgment when deciding whether to further cut interest rates. The head of the National Economic Council, who is considered the favorite to succeed Fed Chairman Jerome Powell, currently sees “a lot of scope” for interest rate cuts. “If the data suggests that we could do it, then – like right now – I think there’s a lot of scope for it,” he said. Asked whether that means the Fed could cut interest rates by more than the quarter percentage point expected on Wednesday, Hassett said: “Correct.”
ECONOMY ASIA
According to the Asian Development Bank (ADB), Asia’s economies performed better than expected in a year marked by US tariff threats. However, growth will slow down next year. Surprisingly strong development in India, Asia’s third-largest economy, has recently offset the slowdown in growth in China, the ADB said and raised its 2025 growth forecast for the region. However, the prospects for the coming year do not look so rosy.
AMAZON
wants to invest more than $35 billion in India. “These investments are strategically aligned with India’s national priorities and will focus on expanding AI capabilities, improving logistics infrastructure, supporting small business growth and job creation,” the US tech giant said. Amazon has already invested $40 billion in India.
BOEING
delivered 44 machines in November, after 53 in October. At the same time, 164 gross orders came in.
JP MORGAN
has completed its budget for next year and plans to spend $105 billion. The bank expects to spend $95.9 billion this year. According to the Factset consensus, analysts had previously expected just under $101 billion for 2026.
MASTER CARD
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December 10, 2025 01:58 ET (06:58 GMT)