Weekly Market Insights – 8 December 2025
Market sentiment was shaped by growing expectations of a more accommodative Federal Reserve, set against a backdrop of mixed economic signals and evolving political developments in the United States. Uncertainty around the future leadership of the Federal Reserve added to investor focus on upcoming policy decisions, as markets increasingly priced in a rate cut.
In the US, economic data painted a nuanced picture, with labor market indicators sending mixed signals and manufacturing activity remaining under pressure. While inflation showed signs of moderation, it remains above target, reinforcing the importance of upcoming central bank decisions. In Europe, inflation edged higher, driven largely by services, while activity indicators showed tentative signs of stabilization despite continued weakness in manufacturing. Japan drew attention through strong demand for long-dated government debt amid plans for expanded fiscal stimulus.
Against this backdrop, global equity markets ended the period higher, supported by expectations of easier monetary policy. Equity performance diverged across regions and sectors, while fixed income markets reflected rising core yields and continued differentiation within credit. Commodities and alternative assets also displayed mixed performance.
Download the full report below for detailed analysis, market data, and our assessment of the implications for global investors.
Report