Monday, December 8, 2025 at 12:37 PM

Market Movers: Fed Whispers, Oil Jitters, and Global Tensions

Major U.S. News Headlines

Fed officials hint at slower pace of cuts in 2025
Several FOMC speakers (including Williams and Barr) reiterated that inflation progress remains bumpy and that premature easing could be risky. Markets now price in only 75–100 bps of cuts in 2025, down from 125–150 bps last week.
→ Bearish for equities, bullish for USD, bearish for long-duration bonds
U.S. November jobs report beats expectations
Nonfarm payrolls rose by 210K, above the 180K forecast, with unemployment holding at 4.0% and average hourly earnings up 0.4% MoM. Strong labor data supports the Fed’s “higher for longer” stance.
→ Bearish for bonds, mildly bearish for growth stocks, supportive for USD
SEC advances new climate disclosure rules for public companies
The SEC released a revised proposal requiring large public firms to disclose Scope 1 and 2 emissions and climate-related financial risks. Sector-specific rules for energy, utilities, and materials could increase compliance costs.
→ Bearish for fossil fuel and high-emission sectors, potentially bullish for ESG and clean energy names
U.S. 10-year Treasury yield jumps to 4.65%
Yield surged on stronger jobs data and hawkish Fed commentary, marking the highest level since early November.
→ Bearish for rate-sensitive sectors (tech, real estate), supportive for financials

Israel-Hamas conflict escalates in Gaza; U.S. and EU call for de-escalation
Heavy fighting continues in Rafah, with rising civilian casualties. The U.S. and EU have urged Israel to avoid a full-scale ground offensive, while Iran-backed groups in the region remain on high alert.
→ Bullish for defense stocks, bearish for risk sentiment, supportive for safe-haven assets
China signals more stimulus as property sector stress deepens
Chinese authorities are reportedly preparing additional liquidity support for developers and may cut reserve requirement ratios (RRR) in early December. Property stocks in Hong Kong rallied on the news.
→ Bullish for Chinese equities and EM markets, supportive for industrial commodities
ECB officials split on timing of next rate cut
While some ECB members (like Villeroy) suggest a March 2025 cut is possible, others (like Holzmann) warn inflation remains too high. Eurozone inflation data this week will be critical.
→ Neutral to slightly bearish for EUR, mixed for European equities
UK inflation cools to 2.3% YoY, below BoE forecast
Core inflation fell to 3.2%, increasing market bets on a BoE rate cut in Q1 2025. GBP weakened slightly as traders repriced expectations.
→ Bullish for UK bonds, mildly bearish for GBP, supportive for UK equities

U.S. futures: S&P 500 futures -0.4%, Nasdaq 100 futures -0.7%
Futures are lower after strong jobs data and hawkish Fed comments, with tech and growth stocks under pressure.
→ Bearish premarket tone, especially for rate-sensitive sectors
European markets mixed
- DAX -0.2%, FTSE 100 flat, CAC 40 -0.3%
- Energy and defense stocks outperform; tech and rate-sensitive sectors lag.
  → Neutral to slightly bearish, with sector rotation into defensives
Asian markets: China and Hong Kong lead gains
- Shanghai Composite +0.8%, Hang Seng +1.2% on stimulus hopes
- Nikkei 225 -0.3% on yen strength and tech profit-taking
- ASX 200 +0.5% on strong iron ore prices and China demand hopes
  → Bullish for EM Asia, mixed for developed Asia

Oil: Brent +1.8% to $82.40, WTI +2.1% to $78.90
Prices rose on Middle East tensions, OPEC+ supply discipline, and stronger global demand signals.
→ *Bullish for energy stocks, inflation