Canada Signals Delay in US Tariff Deal as Talks Shift to USMCA Review 
BOJ Poised for Historic Rate Hike as Japan Signals Shift Toward Monetary Normalization 
BoE Set to Cut Rates as UK Inflation Slows, but Further Easing Likely Limited 
U.S. Stock Futures Edge Higher as Micron Earnings Boost AI Sentiment Ahead of CPI Data 
Gold and Silver Surge as Safe Haven Demand Rises on U.S. Economic Uncertainty 
Dollar Holds Firm Ahead of Global Central Bank Decisions as Yen, Sterling and Euro React 
Asian Currencies Slip as Dollar Strengthens; Indian Rupee Rebounds on Intervention Hopes 
EU Delays Mercosur Free Trade Agreement Signing Amid Ukraine War Funding Talks 
RBA Unlikely to Cut Interest Rates in 2026 as Inflation Pressures Persist, Says Westpac 
Austan Goolsbee Signals Potential for More Fed Rate Cuts as Inflation Shows Improvement 
U.S. Stock Futures Slip After CPI-Fueled Rally as Markets Weigh Economic Uncertainty 
Japan Inflation Holds Firm in November as BOJ Nears Key Rate Hike Decision 
Asian Stocks Slide as AI Spending Fears and Global Central Bank Decisions Weigh on Markets 
Asian Fund Managers Turn More Optimistic on Growth but Curb Equity Return Expectations: BofA Survey 
Asian Markets Rebound as Tech Rally Lifts Wall Street, Investors Brace for BOJ Rate Hike 
Oil Prices Steady in Asia but Headed for Weekly Loss on Supply Glut Concerns 
Yen Near Lows as Markets Await Bank of Japan Rate Decision, Euro Slips After ECB Signals Caution 
European stock markets edged higher on Wednesday as investors remained cautious about economic uncertainties tied to trade tensions and monetary policy moves. By 08:05 GMT, Germany’s DAX rose 0.6%, France’s CAC 40 gained 0.1%, and the UK’s FTSE 100 added 0.2%.
Market sentiment was dampened by U.S. President Donald Trump’s renewed tariff threats. Trump, inaugurated earlier this week, reiterated plans to impose tariffs on EU goods and an additional 10% levy on Chinese imports starting February. European Union Economy Commissioner Valdis Dombrovskis warned of a proportionate EU response, highlighting economic interests at the World Economic Forum in Davos.
Focus at Davos shifted to European Central Bank (ECB) President Christine Lagarde, who hinted at potential rate cuts as growth headwinds persist. ECB policymakers, including Klaas Knot, supported market expectations for near-term monetary easing. The ECB is widely expected to lower rates by 25 basis points next week, the first of several anticipated cuts in 2025.
In corporate news, easyJet reported a smaller operating loss in its first quarter, driven by lower fuel costs and strong travel demand, boosting its shares by 1%. Chocolate maker Barry Callebaut saw lower-than-expected sales due to record-high cocoa prices. Meanwhile, OpenAI, SoftBank, and Oracle announced a $500 billion investment in U.S. AI infrastructure. Netflix reported record subscriber growth, adding optimism to the tech sector.
Oil prices declined, with U.S. crude futures falling 0.5% to $75.43 per barrel and Brent dropping 0.4% to $78.97. The retreat followed Trump’s declaration of a national energy emergency aimed at maximizing U.S. energy production and rolling back environmental protections.
Investors remain watchful amid global economic headwinds and geopolitical developments impacting trade, energy, and technology sectors.
