**Market Overview: Modest Gains, Mixed Sentiment Across Global Markets**

European stock markets opened slightly higher, but momentum remains limited as there’s not much economic news driving direction. The tone follows a quiet and mixed trading session in Asia, where investors stayed cautious ahead of upcoming U.S. data releases.

U.S. stock futures are showing a mild upward trend, mostly led by tech stocks. The S&P 500 and Nasdaq are slightly in the green, while the Dow and small-cap Russell 2000 are relatively flat.

The U.S. dollar (DXY index) has recovered most of its early morning losses. Initially, it dropped after Japan’s yen strengthened on speculation that the Bank of Japan (BoJ) may hike interest rates soon. However, the yen later lost steam, and the dollar began to climb back. U.S. Treasury yields remain flat as markets await fresh signals from inflation data.

—

**Key Corporate Moves: Tech and AI in Focus**

– **Baidu** is considering taking its AI chip unit, Kunlunxin, public in Hong Kong. This move would place it in direct competition with Nvidia in the AI hardware space. The potential valuation is over $3 billion.
– **Dell** plans to increase prices by 15–20% starting mid-December, citing supply chain and cost pressures. **Lenovo** is expected to follow with price hikes in early 2026.
– **Cloudflare** resolved earlier service disruptions that lasted about 30 minutes.
– **Apple**, **Google**, and **Samsung** have reportedly asked India to reconsider new telecom regulations due to privacy and overreach concerns.

—

**Trade and Tariff Developments**

– The U.S. aims to reduce dependence on Chinese imports and seeks a more balanced trade relationship. The U.S. trade deficit with China has already dropped by around 25%.
– Concerns have also been raised about the U.S.-Mexico-Canada Agreement (USMCA), with calls to prevent countries like China or Vietnam from using Mexico or Canada as a backdoor into the U.S. market.
– China reiterated opposition to U.S. chip export restrictions.
– DJI, a major Chinese drone maker, urged the U.S. to extend its security review deadline.
– China and France signed agreements for cooperation in agriculture and infant formula production.
– Japan is monitoring lawsuits related to U.S. tariffs on Japanese goods.
– Russia offered uninterrupted fuel supply to India and deeper collaboration in rare earth and mineral processing.

—

**U.S. Market Headlines & Policy Updates**

– Morgan Stanley now expects the Federal Reserve to cut interest rates by 25 basis points in December, a shift from previous forecasts.
– Bank of America reports healthy consumer spending through November.
– The Fed announced new pricing for bank payment services effective January 2026.
– The U.S. Supreme Court reinstated a Republican-friendly voting map in Texas.
– Homeland Security announced plans to expand the travel ban list to over 30 countries.

—

**Currency Market Recap**

– The **U.S. Dollar Index (DXY)** is bouncing back after falling earlier on Japanese yen strength, which was sparked by hawkish hints from BoJ sources.
– **USD/JPY** fell below 154.50 briefly before recovering near 155.00 after Japanese officials warned against wild currency moves.
– **AUD** was the top-performing currency due to higher copper prices and early weakness in the dollar.
– **EUR/USD** saw small gains after slight upward revisions to Eurozone GDP and jobs data but remains rangebound.
– The **People’s Bank of China (PBoC)** set USD/CNY midpoint slightly above expectations.

—

**Bond Market Snapshot**

– **U.S. Treasuries** are trading flat ahead of key inflation data (PCE). Traders are increasingly betting on a December rate cut, with odds climbing above 85%.
– **Japanese government bonds (JGBs)** fell overnight due to growing expectations of a December rate hike by the BoJ.
– **German Bunds** eased slightly as markets await a crucial pension vote in the Bundestag, which will test coalition stability.

—

**Commodities Update**

– **Oil prices** (WTI and Brent) remain stable in tight ranges amid ongoing geopolitical talks between Russia and the U.S. about Ukraine. No new developments have moved crude markets significantly.
– **Gold prices** rose steadily during Asian trade, driven by earlier dollar weakness and BoJ-related yen strength. Despite a partial dollar rebound, gold remains near daily highs around $4,231/oz.
– **Copper prices** hit new record highs as 3-month LME contracts surged past $11,700/t on strong demand and bullish sentiment.

—

**Key Economic Data Recap**

– Eurozone Q3 GDP was revised slightly higher to 0.3% quarter-on-quarter.
– EU employment grew 0.6% year-on-year in Q3, beating expectations.
– Germany’s October industrial orders rose 1.5%, well above forecasts.
– UK house prices were flat in November, with mortgage rates at 6.81%.
– French trade deficit narrowed significantly in October.
– Italian retail sales increased both monthly and annually in October.

—

**European Central Bank & UK Regulatory Updates**

– The Bank of England is planning regulatory changes to support credit unions and smaller mutual banks, aiming to encourage growth while maintaining financial stability.

—

**Geopolitical Highlights**

*Middle East:*
– Hamas leadership signaled willingness to step back from ruling Gaza, proposing a technocratic government instead.
– Former President Trump reportedly plans to unveil a new peace phase for Gaza before Christmas.

*Russia/Ukraine:*
– Russia confirmed it’s continuing negotiations with the U.S. over Ukraine matters.
– The U.S. opposes using frozen Russian central bank assets as collateral for Ukraine aid loans.
– The UK may release £8 billion of frozen Russian funds to help Ukraine.

*Other:*
– The U.S. military confirmed it carried out a precision strike on a vessel in international waters in the eastern Pacific Ocean.

—

**Crypto Market Brief**

– Crypto markets remain calm; Bitcoin trades below $92,000 while Ethereum holds around $3,150. No major catalysts are currently moving digital assets.

—

**Asia-Pacific Market Summary**

*Stocks:*
– Asia-Pacific markets were mixed with little movement as traders await U.S. inflation data.
– Australia’s ASX 200 edged higher thanks to mining stocks, despite weakness in energy and consumer sectors.
– Japan’s Nikkei slipped due to growing expectations of a BoJ rate hike and weak household spending data.
– Hong Kong and Shanghai stocks were mixed amid regulatory concerns around NVIDIA chip sales to China.

*Policy Developments:*
– BoJ is reportedly leaning toward a rate hike this month but will decide based on final data closer to the meeting date.
– Japan reiterated its readiness to act against erratic currency moves.
– Hong Kong’s court approved Country Garden’s proposal to delay repayments on $17.7 billion of offshore debt.
– China’s Commerce Ministry pledged more support for imports and consumer spending growth.

*India’s Central Bank:*
– RBI cut its benchmark repurchase rate by 25bps to 5.25%, aligning with expectations and maintained a neutral policy stance.

—

This update offers key insights across global markets including equities, currencies, commodities, trade policies, economic data, geopolitics, and central bank actions—providing a full snapshot of current financial trends for investors and analysts alike.