Global stock markets saw a slight uptick on December 12, supported by expectations of a U.S. Federal Reserve interest rate cut next week following consumer inflation data that matched expectations. The Swiss National Bank (SNB) contributed to market movement by cutting rates by 50 basis points, its largest reduction in nearly a decade, which caused the Swiss franc to weaken. Meanwhile, U.S. stocks saw strong gains, especially the tech-heavy Nasdaq, which reached a new milestone by closing above 20,000 for the first time.
As the European Central Bank (ECB) prepares to announce its decision later in the day, the euro gained 0.2% against the dollar, with traders anticipating a 25-basis-point rate cut. Meanwhile, the Swiss franc, which had weakened due to the SNB’s policy shift, saw a decline of 0.5% against the dollar. The global financial landscape was shaped by central bank actions, with the dollar easing against several currencies and investors digesting economic signals, including the rise in U.S. Treasury yields and a growing budget deficit.
Other key currencies saw mixed movement. The Japanese yen remained under pressure after reports indicated the Bank of Japan might forgo a rate hike in its upcoming meeting, while the Australian dollar surged following strong employment data. The yuan stabilized as China’s central bank kept its official midpoint steady. In commodities, gold briefly reached a one-month high amid expectations of more rate cuts, while crude oil prices continued their rally due to concerns over potential sanctions on Russian oil output.