Global markets started the week cautiously as investors looked ahead to the Federal Reserve’s final policy meeting of the year, with a rate cut seen as all but certain. Wall Street drifted lower after recent gains, Europe traded near the flat line amid muted sentiment, and Asia was mixed as investors weighed Chinese trade data and regional tensions. Media stocks dominated headlines after Paramount launched a $108 billion bid for Warner Bros. Discovery, challenging Netflix’s earlier $72 billion deal.
US stocks dipped on Monday as Wall Street entered a pivotal week dominated by the Federal Reserve’s final policy meeting of the year, with markets overwhelmingly expecting a third consecutive rate cut. The DOW fell -0.3%, the S&P 500 declined -0.5% and the NASDAQ slipped -0.3% as investors weighed the unusual disconnect between falling policy rates and rising long-term yields, with the US two-year yield up +2bp to 3.583% and the 10-year yield up +3bp to 4.17%. Media stocks were active again after President Trump warned that Netflix’s US$72 billion bid for Warner Bros. Discovery (WBD) could face antitrust hurdles, only for Paramount Skydance to counter with a surprise US$108 billion all-cash hostile offer that sent WBD up +3.1%, pushed Netflix down -4.3% and added fresh uncertainty to the takeover race. IBM (+0.7%) announced a US$11 billion deal to acquire Confluent (+29.3%), and Broadcom rose +2.7% to a record high on reports it may collaborate with Microsoft (+1.6%) on custom chip design.
European stocks were little changed on Monday, with the STOXX 600 falling -0.1% as Germany’s DAX edged up +0.1%, while France’s CAC 40 slipped -0.1% and the UK’s FTSE 100 fell -0.2%. Unilever lost -6.6% after completing the demerger of its ice-cream division, while L’Oréal lost -2.0% after doubling its stake in skincare specialist Galderma. Geopolitical developments also shaped sentiment, with US officials signalling progress toward a Ukraine peace deal. Meanwhile, Elon Musk stated that the European Union be ‘abolished’ after X was fined €120 million for misleading verification practices and advertising transparency failures.
Asian markets delivered a mixed performance on Monday as investors parsed Chinese trade data, monitored escalating China–Japan tensions, and looked ahead to Wednesday’s Federal Reserve decision. China’s Shanghai Composite rose +0.5% after exports rebounded more strongly than expected in November, though softer import growth left the trade surplus broadly steady, while Hong Kong’s Hang Seng fell -1.2% amid geopolitical strains after Japan accused Chinese fighter jets of targeting its aircraft near Okinawa. Japan’s Nikkei 225 edged up +0.2% as revised GDP figures showed the economy contracted more than initially estimated last quarter on weak capital spending. Australia’s ASX 200 slipped -0.1% ahead of the Reserve Bank’s policy meeting and key labour data later in the week, while New Zealand’s NZX 50 inched higher after two days of losses, supported by gains in property names.
WTI crude lost -1.6% to US$59.09/bbl, gold slipped -0.1% to US$4,193.63/oz, and iron ore dropped -0.6% to US$107.24/MT.