Category: Market News

U.S. equity futures pointed to a modestly positive start on Tuesday, suggesting Wall Street may attempt to regain momentum after Monday’s decline.

A renewed bounce in Bitcoin—up more than 2% after its sharp selloff to start the week—is helping lift sentiment, with tech names also showing early strength. Oracle (NYSE:ORCL), Nvidia (NASDAQ:NVDA), and Broadcom (NASDAQ:AVGO) were among the notable gainers in pre-market trading.

Despite the early upside, activity is expected to remain restrained as investors brace for a packed calendar of economic reports.

The first key release arrives Wednesday when ADP publishes its November private-sector payroll figures. Economists are looking for a modest gain of roughly 10,000 jobs, compared with the 42,000 added in October. The numbers will be closely watched ahead of next week’s Federal Reserve meeting.

Expectations for another rate cut continue to rise, with the CME FedWatch Tool showing an 87.4% probability of a quarter-point reduction—significantly higher than the 63% chance priced in a month ago.

Investors will also parse upcoming updates on services activity, household income and spending, and consumer sentiment, all of which could influence rate expectations heading into mid-December.

On Monday, stocks attempted to climb back after an early slump, but selling pressure eventually returned. All three major indexes closed firmly lower:

• Dow Jones Industrial Average: -427.09 points (-0.9%)
• Nasdaq Composite: -89.76 points (-0.4%)
• S&P 500: -36.46 points (-0.5%)

The pullback came after a strong streak last week, during which the major averages logged five straight sessions of gains and erased much of November’s earlier dip. Monday’s weakness suggested some investors were locking in profits after the rebound.

Recent optimism surrounding interest-rate policy—driven by dovish comments from senior Fed officials—could be challenged by the upcoming data releases.

Adding to the caution, the ISM’s November manufacturing index unexpectedly fell to 48.2 from 48.7, indicating continued contraction rather than the slight improvement economists had forecast.

Sector performance varied widely. Utilities led the losses, with the Dow Jones Utility Average dropping 2.3% to a two-month low. Biotech stocks also slid, reflected by a 2.1% fall in the NYSE Arca Biotechnology Index. Networking, healthcare, and hardware names weakened as well, while energy stocks stood out on the upside thanks to rising crude oil prices.

European equities advanced modestly on Tuesday, with investors closely watching diplomatic developments around the war in Ukraine as well as upcoming U.S. economic indicators.

Following meetings between U.S. officials and a Ukrainian delegation in Florida, President Volodymyr Zelenskyy said the updated U.S. proposal to end the conflict with Russia “looks better.”
According to multiple reports, U.S. President Donald Trump’s envoy Steve Witkoff has now travelled to Moscow to present a revised 19-point peace framework directly to Russian President Vladimir Putin.

Across the major indices, Germany’s DAX gained 0.4%, while the FTSE 100 in the U.K. and France’s CAC 40 each climbed 0.2%.

On the data front, preliminary figures from Eurostat showed an unexpected pickup in Eurozone inflation during November. Inflation rose to 2.2%, surprising economists who had expected no change from October’s 2.1%.

In the U.K., Nationwide Building Society reported stronger-than-expected momentum in the housing market. Annual house price growth reached 1.8% in November—slower than October’s 2.4% increase yet still ahead of the 1.4% consensus estimate.

Among individual movers, Bayer (TG:BAYN) jumped after the Trump administration backed the company’s effort to persuade the U.S. Supreme Court to limit lawsuits claiming its Roundup weedkiller causes cancer.

Victrex (LSE:VCT) also surged after reporting a 12% increase in sales volumes for 2025, reinforcing its leadership in the high-performance polymer market.

Swiss building materials group Holcim (BIT:1HOLM) traded higher as well, announcing acquisitions of three companies in the U.K., France, and Germany specializing in recycled demolition materials.

Meanwhile, industrial technology firm ABB (BIT:1ABB) saw gains after completing its purchase of Gamesa Electric’s power electronics business from Siemens Gamesa in Spain.

Apple Inc. (NASDAQ:AAPL) may soon confront a new wave of collective legal actions across the European Union after the bloc’s highest court confirmed that consumers can pursue group claims against the company in the Netherlands, regardless of where they reside.

In a ruling issued Tuesday, the EU Court of Justice said that an Amsterdam court is entitled to hear a case brought by the foundations Stichting Right to Consumer Justice and Stichting App Stores, which allege that Apple’s App Store fee structure — with commissions reaching up to 30% — breaches EU competition rules.

The court stated that Dutch judges are authorized to review a representative action targeting Apple’s alleged anticompetitive practices related to its App Store offerings in the Netherlands.

The decision could open the door to broader, coordinated compensation claims against Apple’s App Store policies across the EU, increasing legal risks for the tech giant as it faces heightened regulatory scrutiny in the region.

Crude prices were little changed on Tuesday as energy markets continued to assess the fallout from Ukrainian drone attacks on Russian infrastructure and growing friction between the United States and Venezuela.

As of 0903 GMT, Brent crude slipped 19 cents (0.3%) to $62.98 per barrel, while U.S. West Texas Intermediate eased 12 cents (0.2%) to $20 per barrel.
Both contracts had climbed more than 1% on Monday, with WTI briefly touching a two-week high.

Ole Hansen, head of commodity strategy at Saxo Bank, said the latest price action reflects a fragile balance between geopolitical risks and expectations of excess supply.
He noted: “Besides that, the expected yet elusive supply glut remains a key focus preventing any meaningful bounce at this point.”

The supply backdrop was further complicated on Monday when the Caspian Pipeline Consortium confirmed that it had restarted exports from one of its Black Sea loading points following the significant Ukrainian drone strike on November 29.

Concerns rose again over the weekend after U.S. President Donald Trump said “the airspace above and surrounding Venezuela” should be treated as closed — a statement that injected fresh uncertainty given the country’s status as a major oil producer.

Diplomatic developments remain a key focus for traders as well.
According to Tamas Varga of PVM Oil Associates, “Focus is also on the Ukrainian peace talks, which might result in Russia increasing its crude oil and product exports once again, although this process is likely to be protracted.”

Ukrainian President Volodymyr Zelenskiy reiterated Monday that Kyiv is prioritizing sovereignty and strong security guarantees, while acknowledging that territorial issues remain the most difficult area in negotiations.

Meanwhile, Trump’s special envoy Steve Witkoff, accompanied by Jared Kushner, is expected to meet Russian President Vladimir Putin on Tuesday to discuss possible pathways toward ending the conflict.

Elsewhere, OPEC+ confirmed on Sunday that it will proceed with a modest production increase for December and pause further hikes in the first quarter of next year over concerns of a potential supply glut.

The decline followed a rise in benchmark 10-year Treasury yields, which climbed to a near two-week peak and weakened appetite for non-yielding assets like bullion. The stronger yields also dampened some optimism surrounding expectations of an imminent Fed rate cut.

Even with Tuesday’s pullback, the broader outlook for the metal remained constructive. Futures markets still imply that the Fed is likely to lower interest rates next week, supported by easing inflation trends and signs of a cooling labor market — factors that typically enhance gold’s appeal by reducing the opportunity cost of holding it.

However, investors were hesitant to take big positions ahead of multiple high-impact data releases.

This week’s calendar includes the November ADP private employment report and the delayed September PCE Price Index, the Fed’s preferred gauge of inflation. Both figures could meaningfully influence expectations for monetary easing in the months ahead.

Uncertainty over the Federal Reserve’s future leadership also kept traders on edge.

President Donald Trump said on Sunday that he has selected a nominee to replace Fed Chair Jerome Powell, but declined to reveal the name. Reports suggest that White House economic adviser Kevin Hassett may be among the top contenders.

Metals trade lower; silver falls after record peak

Other precious and base metals also weakened as investors trimmed risk and positioned cautiously ahead of next week’s central bank meeting.

• Silver futures dropped 2.1% to $57.88 per ounce after briefly touching an all-time high of $59.44 on Monday.
• Platinum futures slipped 0.6% to $1,661.60 per ounce.
• LME copper eased 0.3% to $11,228.20 per ton.
• U.S. copper futures held steady at $5.27 per pound.

The U.S. dollar posted a modest uptick on Tuesday, though the broader trend remained soft as investors continued to price in a high probability of a Federal Reserve rate cut later this month.

At 04:30 ET (09:30 GMT), the Dollar Index — which measures the greenback’s performance against six major peers — was up 0.1% at 99.422, following a seven-day slide that pushed it to a two-week low on Monday.

Fed expectations dominate currency markets

Fresh economic data released Monday showed that U.S. manufacturing contracted for the ninth month in a row in November, reinforcing concerns that the economy is losing steam heading into year-end.

According to the CME FedWatch tool, traders now assign an 88% chance that the Fed will cut rates by 25 basis points at its December 10 meeting — a notable jump from 63% a month earlier.

Analysts at ING wrote that “we expect that the remainder of the week will validate the market’s dovish pricing for next week’s Fed meeting.”

Markets are also awaiting clarity on who will succeed Fed Chair Jerome Powell, after reports indicated White House adviser Kevin Hassett is currently the leading candidate.

U.S. Treasury Secretary Scott Bessent has said there is a strong likelihood President Donald Trump will reveal his pick before Christmas.

Euro holds near steady ahead of flash inflation

In Europe, EUR/USD slipped slightly to 1.1607 as diplomatic discussions continued over the war in Ukraine, with U.S. envoy Steve Witkoff heading to Moscow for talks with Russian officials.

Later in the day, investors will receive the eurozone’s flash inflation figures. Markets expect annual inflation to remain just above the ECB’s medium-term target, a reading unlikely to influence policy expectations as traders broadly anticipate no rate moves until 2026.

ING commented that “the risks are slightly on the downside for the euro, but our expectation is for a neutral FX impact nonetheless and EUR/USD can eye 1.170 again soon if USD drops in line with our call.”

The GBP/USD pair edged down to 1.3213, though the pound hovered near its highest readings in a month. The slight pullback followed the resignation of the head of the U.K.’s fiscal watchdog, who stepped down after the institution mistakenly published budget details ahead of Chancellor Rachel Reeves’ parliamentary announcement.

Yen softens after Monday’s brief rally

In Asian trading, USD/JPY gained 0.3% to 155.94, recovering after a 0.5% decline the previous session that was sparked by hawkish messaging from Bank of Japan Governor Kazuo Ueda.

Ueda said over the weekend that the BOJ could consider raising interest rates as early as this month, pushing yields on Japanese government bonds to their highest levels in decades.

The 30-year JGB yield rose above 1.9%, while the 10-year tested 1.88%.

Across the region, USD/CNY slipped to 7.0700, while AUD/USD rose 0.1% to 0.6553.

Bitcoin (COIN:BTCUSD) posted a slight recovery on Tuesday after suffering a sharp drop in the previous session that dragged the world’s largest cryptocurrency below $84,000. The decline came as renewed risk aversion hit digital assets at the start of December, extending the volatility seen throughout late November.

The abrupt pullback surprised many traders, arriving just after Bitcoin bounced from levels near $80,000 late last week. By 01:58 ET (06:58 GMT), Bitcoin was up 0.6% at $87,087.6, having fallen more than 7% on Monday.

Bitcoin struggles to stabilize after December drop

Monday’s selloff continued the broader downtrend that dominated November—a month in which Bitcoin logged its steepest decline in more than four years and spot Bitcoin ETFs saw significant outflows.

Market sentiment remained fragile on Tuesday, with ongoing concerns about whether institutional appetite for crypto is weakening. Data pointed to a surge in whale transfers to exchanges and algorithmic-driven selling, both of which accelerated the decline.

Even with Tuesday’s modest rebound, the move did little to calm worries about deeper losses. According to a CoinDesk report, Bitcoin could slide toward the $60,000–$65,000 range if selling pressure intensifies.

The downturn has been fueled by a mix of profit-taking, thin liquidity and caution ahead of several key macro events this month.

Expectations for a Federal Reserve rate cut next week have climbed to nearly 90%, lifting hopes that financial conditions may ease soon. However, uncertainty surrounding the extent and pace of future easing continues to stir volatility across the crypto market.

Traders are also monitoring developments in Washington as President Donald Trump prepares to select a potential successor to Fed Chair Jerome Powell.

Strategy Inc cuts outlook as Bitcoin slump deepens

Shares of Strategy Inc (NASDAQ:MSTR) tumbled Monday after the company cut its full-year guidance, citing the worsening Bitcoin downturn and ongoing crypto market volatility as major drags on earnings.

Other crypto-related names also moved sharply lower:

• Coinbase (NASDAQ:COIN) dropped around 5%
• Robinhood (NASDAQ:HOOD) fell more than 4%

Altcoins trade mixed amid caution

Trading in alternative cryptocurrencies remained subdued, with most major tokens stuck in narrow ranges.

• Ethereum slipped 0.3% to $2,814.92
• XRP declined 1.1% to $2.02
• Solana posted a mild gain
• Cardano rose 2%
• Polygon slid 3.5%

Among meme tokens, both Dogecoin and $TRUMP edged 0.6% lower.

JPMorgan has released its outlook for the European leisure space heading into 2026, projecting that hotel operators are poised for a strong year thanks to improving travel trends and a series of region-specific catalysts.

Analysts expect the hotel industry to regain momentum after a subdued 2025, pointing to “more favorable” U.S. Revenue Per Available Room (RevPAR) comparisons from the second quarter onward, as well as the global uplift expected from the FIFA World Cup scheduled for June and July.

A rebound in China next year could further strengthen the backdrop, particularly for InterContinental Hotels (LSE:IHG), which the bank rates Overweight with roughly 20% upside. Accor (EU:AC) is also singled out as a candidate for further re-rating, helped by execution improvements and the planned sale of Essendi.

The tone shifts when JPMorgan assesses the gaming industry. While analysts acknowledge that the sharp second-half selloff in 2025 may have gone too far for Flutter (LSE:FLTR) and Entain (LSE:ENT)—both now upgraded to Overweight—they remain wary of broader sector risks. The two companies are described as having a “sound growth profile,” and are also seen as beneficiaries of a U.K. market that has “de-risked” following the latest budget.

For Flutter specifically, JPMorgan highlights one of the sector’s strongest growth frameworks, citing EBITDA expansion above 20% and EPS growth above 30% over 2026–2028, driven by U.S. market opportunities and consistent buybacks. Entain is viewed more positively as well, helped by operational gains in the U.K. and U.S., and by improving profitability at BetMGM.

However, the bank is notably more cautious on Evolution (USOTC:EVGGF) and FDJ United (EU:FDJU). Evolution has been placed on Negative catalyst watch, while FDJ received a rare double-downgrade to Underweight ahead of February results. JPMorgan’s estimates sit around 8% below consensus EBITDA for 2026–2027, citing a slower structural growth trajectory for Evolution and persistent regulatory pressures across FDJ’s core regions.

For FDJ, analysts caution that expectations may need to reset over a longer period, as affordability checks, rising taxes and softer performance in the Netherlands and U.K. continue to drag on its online operations.

Across the leisure sector more broadly, JPMorgan’s top picks for 2026 include InterContinental Hotels, Accor, Compass (LSE:CPG) and Flutter, while Evolution remains its primary Underweight call.

U.S. equity futures slipped on Tuesday as traders digested a sharp downturn in Bitcoin (COIN:BTCUSD) and continued to position for a possible interest-rate cut by the Federal Reserve next week. Bitcoin was largely unchanged after Monday’s steep drop, reflecting weaker risk appetite. Gold edged lower as Treasury yields climbed, while crude prices were mixed. Elsewhere, investors await earnings from Marvell Technology (NASDAQ:MRVL), which could shed new light on demand trends driven by the artificial intelligence boom.

Futures ease off

U.S. futures traded in negative territory after December’s opening session delivered a combination of falling crypto prices, rising bond yields, and soft U.S. data.

By 03:17 ET (08:17 GMT):

• Dow futures were down 71 points (-0.2%)
• S&P 500 futures slipped 0.2%
• Nasdaq 100 futures eased 0.2%

Major indexes closed lower on Monday after the Institute for Supply Management reported that U.S. manufacturing contracted for the ninth consecutive month in November — a sign persistent tariffs continue to weigh on activity.

Expectations remain unchanged ahead of the Federal Reserve’s December 9–10 meeting. According to CME FedWatch, markets assign an 85% probability to a quarter-point rate cut.

Treasury yields pushed higher after Bank of Japan Governor Kazuo Ueda suggested Japan’s economy may be strong enough to withstand higher interest rates, a move that also pressured European and Japanese bonds.

Meanwhile, Bitcoin’s sharp drop dragged down equities tied to the digital asset space. Strategy — the largest corporate holder of crypto — cut its 2025 earnings guidance due to Bitcoin weakness, sending its shares lower.

Bitcoin stabilizes following sharp decline

Bitcoin traded near breakeven on Tuesday after a heavy selloff the previous day that forced the coin below $84,000 amid renewed risk aversion.

Even with a rebound from last week’s lows near $80,000, sentiment remains fragile.

At 03:32 ET, Bitcoin was down 0.4% at $86,480.3. The cryptocurrency lost more than $18,000 in November, its steepest monthly decline since 2021, and is now about 30% below its October all-time high.

Gold slips as yields rise

Gold prices pulled back early Tuesday as rising Treasury yields reduced demand for the non-yielding metal, ahead of several key data releases and the Fed’s upcoming policy decision.

• Spot gold: down 0.4% to $4,213.95
• U.S. gold futures: down 0.7% to $4,245.25

Benchmark 10-year U.S. yields hovered near a two-week high, weighing on gold despite continued expectations for another Fed rate cut next week as inflation cools and the labor market shows signs of easing.

Oil prices fluctuate

Crude prices traded without a firm direction, supported by geopolitical uncertainty but pressured by rising supply.

• Brent: down 0.2% to $63.04
• WTI: down 0.1% to $59.27 (03:45 ET)

Both benchmarks rose more than 1% Monday, with WTI nearing a two-week high.

On Ukraine, President Volodymyr Zelenskiy reiterated that Kyiv’s priorities are to protect sovereignty and “ensure strong security guarantees,” while stressing that territorial issues remain “the most complicated sticking point.”

U.S. envoy Steve Witkoff is expected to brief Russian officials on Tuesday, though the nearly four-year conflict still appears far from resolution.

Tensions between the U.S. and Venezuela have escalated after Washington signaled potential tightening of restrictions against Caracas, potentially including an airspace closure.

Over the weekend, OPEC+ confirmed a modest production increase for December but paused any further hikes in early 2026 amid concerns about oversupply.

Marvell earnings in focus

On an otherwise light corporate calendar, Marvell Technology (NASDAQ:MRVL) is set to take the spotlight.

The semiconductor company competes closely with Broadcom (NASDAQ:AVGO) in custom and networking chips. Media reports on Monday suggested Marvell is in advanced talks to acquire Celestial AI in a multibillion-dollar cash-and-stock deal.

According to The Information, a transaction potentially valued at more than $5 billion could be announced as early as today. The deal would enhance Marvell’s product portfolio as AI-related demand accelerates.

Marvell reports after the closing bell and is expected to post $0.74 in EPS, based on Bloomberg consensus. Shares are down 18% year-to-date after a disappointing data-center forecast issued in August.

European stocks moved cautiously on Tuesday, with major indices struggling to find clear direction as investors look ahead to a packed month of monetary policy decisions.

Around 03:05 ET (08:05 GMT), the DAX in Germany and the FTSE 100 in the U.K. each rose 0.1%, while France’s CAC 40 slipped 0.1%.

Global monetary policy in focus

European equities started December on a soft note, closing lower on Monday. Even so, the region’s main benchmarks remain on track for solid yearly performance, helped by rising conviction that the U.S. Federal Reserve will begin cutting rates next week.

Both the German DAX and the FTSE 100 are set to end 2025 with gains above 18%, whereas the CAC 40, weighed down by political uncertainty, is on pace for a more modest 10% advance.

Markets are now pricing in an 87.2% probability of a quarter-point rate cut by the Fed, according to the CME FedWatch Tool. The Bank of England is also widely expected to ease policy this month amid cooling inflation and sluggish growth, especially after tax increases were announced in last week’s Autumn Budget.

Later today, investors will also receive flash eurozone inflation numbers. Annual price growth is projected to come in slightly above the ECB’s medium-term target, but this is unlikely to alter expectations that the central bank will remain on hold through 2026.

Corporate buybacks poised to support European stocks in 2026

Beyond central bank dynamics, analysts at Barclays see further support coming from corporate activity next year.

Companies in Europe bought back €19.3 billion worth of shares in November 2025 — close to the highest level since 2017 — according to a Tuesday note from the bank. Buybacks accounted for 2.3% of all European trading volume last month, with energy and financial firms generating more than 2.5% of volume through repurchases.

Fourth-quarter execution is already running ahead of historical trends, and the pipeline for 2026 looks substantial: roughly 70% of next year’s buyback authorizations remain untapped. Barclays’ models also point to around €50 billion in fresh buyback announcements expected in the first quarter.

The bank forecasts 8% earnings-per-share growth for European equities in 2026, with automakers, telecom companies and energy groups offering some of the highest free-cash-flow yields across sectors.

Oil prices inch higher

Crude benchmarks held on to Monday’s gains, supported by geopolitical tensions and cautious optimism around global supply dynamics.

Brent edged up 0.1% to $63.20 per barrel, while WTI rose 0.2% to $59.41. Both contracts gained more than 1% on Monday, with WTI hovering near a two-week high.

Hopes for progress in talks over Ukraine remain fragile. President Volodymyr Zelenskiy said Kyiv’s priorities include safeguarding sovereignty and securing robust security guarantees, acknowledging that territorial disagreements remain the most difficult issue. U.S. envoy Steve Witkoff is expected to brief Russian officials on Tuesday, though a near-term end to the nearly four-year conflict appears unlikely.

Separately, tensions have risen between Washington and Caracas after U.S. officials signaled they may impose tighter restrictions on Venezuela — a country believed to hold the world’s largest oil reserves — potentially including an airspace closure.

Over the weekend, OPEC+ confirmed a small production increase for December but opted to pause any further increases in early 2026 amid growing concern about a possible supply surplus.