Global equities weakened on Tuesday as soft US labour data, falling oil prices, and continued tech pressure pulled Wall Street lower and weighed on sentiment across Europe and Asia. Caution prevailed ahead of key US inflation data, while concerns about China’s growth outlook and shifting central-bank expectations kept sentiment muted.
US stocks fell on Tuesday as traders digested the delayed November jobs report, which showed payrolls rising but an unexpected increase in the unemployment rate to 4.6%, signalling further cooling in the labour market. The DOW dropped -0.8%, S&P 500 slipped -0.6% while the NASDAQ fell -0.3% as investors continued to rotate out of higher-valuation names. Energy stocks weakened as oil prices fell to their lowest levels since early 2021, pulling Exxon Mobil (-2.3%) and Chevron (-1.9%) lower. Ford was flat after outlining a -US$19.5b charge tied to its EV business overhaul, while Pfizer slid -4.6% after issuing disappointing 2026 profit guidance. Meanwhile, NASDAQ confirmed it has asked the SEC for approval to extend trading to 23 hours a day during the work week, signalling a potential shift in US market structure. Investors now turn to Thursday’s CPI release for further clarity on the policy path ahead. In rates markets, the US two-year yield fell -3bp to 3.481% while the US 10-year yield lost -2bp to 4.159%.
European stocks closed lower on Tuesday, reversing Monday’s gains, with the STOXX 600 down -0.5% as most major sectors and indices retreated. Germany’s DAX fell -0.6% while France’s CAC 40 slipped -0.2% and the UK’s FTSE 100 lost -0.7%. Defence names weighed heavily amid ongoing Russia–Ukraine negotiations following President Trump announcing European leaders were ‘closer now than we have ever been’ to securing a deal; Rheinmetall and Renk fell -4.5% and -3.5% respectively. Further pressure came from softer UK labour data, with the unemployment rate rising to 5.1%—its highest since early 2021—and payrolls declining sharply.
Asian stocks fell broadly on Tuesday as investors awaited key US jobs and inflation data for clearer signals on the Fed’s 2026 rate path, while renewed growth concerns in China added pressure across the region. China’s Shanghai Composite dropped -1.1% and Hong Kong’s Hang Seng fell -1.5% amid broad-based selling and continued caution over Beijing’s reluctance to deliver large-scale stimulus. Japan’s Nikkei 225 slid -1.6% as the yen strengthened on safe-haven flows and expectations of a BoJ rate hike, while December PMI data signalled a modest cooling in momentum. South Korea’s Kospi tumbled -2.2% on persistent concerns over AI profitability, with SK Hynix down -4.3%. Australia’s ASX 200 fell -0.4% as consumer confidence slumped on expectations the RBA could resume tightening, while weakness in tech names such as WiseTech Global (-3.0%) added to the drag. New Zealand’s NZX 50 edged up +0.1%, led by The a2 Milk Company (+2.8%) and Meridian Energy (+2.6%). Gentrack continued its recent slide, down a further -3.5%.
WTI crude fell -2.4% to US$55.45/bbl as traders priced in a looming supply surplus and the possibility of a peace agreement in Ukraine. Gold was steady at US$4,302.01/oz, and iron ore held flat at US$106.10/MT.