Weekly market news: 8 December 2025
Markets start the week focused squarely on the Federal Reserve’s policy meeting on 9–10 December, alongside a busy run of US data that will help clarify the timing of potential rate cuts.
With investors already pricing in a meaningful chance of easing before year-end, attention will be on whether the Fed signals confidence in slowing inflation or pushes back against expectations. Early-December PMIs and China activity data will also shape sentiment on global growth.
Market snapshot this morning
- Brent crude $62.9/bbl
- WTI $59.2/bbl
- gold $4,216/oz
- US dollar index ~99 (DXY)
- GBP/USD ~1.33
- EUR/USD ~1.165
Why it matters
Oil: Prices are slightly weaker after reports of progress in Ukraine peace discussions and potential incremental supply, softening near-term inflation pressures and easing some pressure on central banks.
Gold: Prices remain elevated as the dollar softens and markets lean toward Fed cuts. Strong gold demand often signals investor caution, supporting precious-metals exposure.
FX and rates: The dollar is range-bound as markets balance Fed-cut expectations with incoming data. Sterling and the euro are steady ahead of the Fed meeting; any hawkish surprise would push yields and the dollar higher.
Coming up this week
Tuesday 9 December
- Federal Reserve meeting begins – markets will watch closely for any change in tone on rate cuts.
- US job openings data (where scheduled) – adds insight into labour-market slack ahead of the Fed decision.
Wednesday 10 December
- Federal Reserve interest-rate decision and press conference – the key event of the week that will drive moves in yields, the dollar and equities.
- Additional US labour or cost indicators (where scheduled) – may help explain the Fed’s policy stance.
Thursday 11 December
- US weekly jobless claims – high-frequency gauge of labour-market tightness.
- Eurozone and UK PMI follow-ups – further colour on private-sector momentum.
Friday 12 December
- China inflation and activity data (where scheduled) – important for commodity demand and global growth sentiment.
- End-of-week positioning – with year-end approaching, investors may adjust exposures, amplifying market moves.
What you might’ve missed last week
European sentiment improved modestly, although Germany remains a drag on regional momentum.
Oil eased from recent highs on signs of diplomatic progress in Ukraine and speculation of additional supply.
Gold rallied on a softer dollar and rising expectations of a December Fed cut.
Why it matters
This is one of the most important weeks of the quarter. The tone of the Fed’s communication will shape the direction of global markets into year-end. A dovish message could mean lower yields, a weaker dollar and support for equities and commodities.
A more cautious stance could tighten financial conditions and trigger volatility. Meanwhile, PMI and China data will help determine whether global growth is stabilising or still under pressure – key for sector leadership across markets.
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