It is all about the Fed today. They are widely expected to cut interest rates by another 25 basis points to 3.75%. The focus is on its outlook for next year, given Donald Trump’s proposed policies that may rekindle inflation. The central bank’s meeting also comes as U.S. economic data showed a mixed picture, with retail sales increasing at a firm pace and industrial production unexpectedly declining. Politics will dominate market moves.
Elsewhere, Japan's Honda Motor and Nissan Motor are preparing to start negotiations on a possible merger, which ultimately could be expanded to include Mitsubishi Motors. Overnight, Vishal Mega Mart Ltd.’s shares surged in their Mumbai debut after raising $944 million in India’s last major new listing of the year. Memory-chip maker Kioxia Holdings Corp. soared 10% in its debut on the Tokyo Stock Exchange, underscoring strong investor demand for new shares in Japan. Domestically, UK CPI rose 2.6% year-on-year, while core CPI came in at 3.5%, below the 3.6% estimate. Cable opens with a 1.27 handle.
As for the day ahead, we have Eurozone CPI and the U.S. rate decision at 7 p.m. Market-wise, Bitcoin fell 2.4% to $103,836.31, Ether fell 2.3% to $3,843.08, the yield on 10-year Treasuries declined two basis points to 4.38%, West Texas Intermediate crude rose 0.2% to $70.19 a barrel, and Spot gold was little changed at $2,647.
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