Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
Europe Confronts Rising Competitive Pressure as China Accelerates Export-Led Growth 
Asian Currencies Edge Higher as Markets Look to Fed Rate Cut; Rupee Steadies Near Record Lows 
Austria’s AA Credit Rating Affirmed as Fitch Highlights Stable Outlook 
BOJ Governor Ueda Highlights Uncertainty Over Future Interest Rate Hikes 
European Oil & Gas Stocks Face 2026 With Cautious Outlook Amid Valuation Pressure 
European Stocks Rise as Markets Await Key U.S. Inflation Data 
RBI Cuts Repo Rate to 5.25% as Inflation Cools and Growth Outlook Strengthens 
Vietnam’s November Trade Sees Monthly Decline but Strong Year-on-Year Growth 
IMF Deputy Dan Katz Visits China as Key Economic Review Nears 
Asian Markets Mixed as RBI Cuts Rates and BOJ Signals Possible Hike 
China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai 
Asian Currencies Steady as Rupee Hits Record Low Amid Fed Rate Cut Bets 
Citi Sets Bullish 2026 Target for STOXX 600 as Fiscal Support and Monetary Easing Boost Outlook 
Fed Meeting Sparks Division as Markets Brace for Possible Rate Cut 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
U.S. stock index futures edged lower in Thursday’s holiday-thinned session as geopolitical and monetary policy risks dampened investor sentiment. S&P 500 Futures dropped 0.2% to 6,022.0, Nasdaq 100 Futures slipped 0.2% to 21,904.25, and Dow Jones Futures declined 0.3% to 42,392.0.
Markets remained cautious after President Donald Trump delayed a decision on potential U.S. military action against Iran, amid escalating tensions with Israel. The White House confirmed that Trump will decide on U.S. involvement within two weeks, keeping investors on edge. Despite considering direct strikes, Trump has also hinted at possible nuclear negotiations with Tehran, although he remains firmly opposed to Iranian nuclear enrichment.
The Israel-Iran conflict, now in its eighth day, has triggered risk-off sentiment across global markets, with concerns mounting over a broader Middle East war. The situation has also pushed oil prices higher, raising fears of energy-led inflation.
Adding to the uncertainty, the Federal Reserve kept interest rates steady on Wednesday but signaled fewer rate cuts in 2026. Fed Chair Jerome Powell maintained a data-driven stance and highlighted persistent inflation risks, partly due to Trump’s proposed tariffs. While the Fed still projects two rate cuts in 2025, markets were disappointed by the more cautious long-term outlook.
Wall Street remained rangebound during the shortened week. The S&P 500 ended Wednesday nearly flat at 5,980.87, the Nasdaq Composite ticked up 0.1% to 19,546.27, and the Dow Jones dipped 0.1% to 42,171.66.
With the combination of geopolitical tension, rising oil prices, and hawkish Fed signals, investor caution remains high. Markets are likely to stay volatile as they await further clarity on U.S. foreign policy decisions and inflation trajectory.
