The yield on 10-year Treasuries advanced one basis point to 4.15%
by Andre Janse van Vuuren and Levin Stamm
Stocks nudged higher at the start of a week in which traders will watch for clues on the 2026 interest-rate path as they look beyond an all-but-certain cut at the Federal Reserve’s final meeting of the year.
S&P 500 futures rose 0.1% after the benchmark closed within 0.3% of an all-time high on Friday. Europe’s Stoxx 600 was little changed. Mainland Chinese shares led gains in Asia as the Communist Party’s Politburo made boosting domestic demand its top priority for next year. Nasdaq 100 contracts climbed 0.2%.
US stocks have rebounded in recent weeks to approach an October record after some Fed officials signaled that they intend to deliver a cut on Wednesday. Still, the advance has been jittery as uncertainty over the pace of easing in 2026 and wariness about the durability of an AI-driven rally keep sentiment in check.
Unease that inflation remains too high has caused growing divisions among policymakers, a rift exacerbated by the lack of fresh economic data during the longest US government shutdown on record. After a probable cut on Wednesday, money markets are now leaning toward two more by the end of 2026, down from three barely a week ago.
While a resilient economy, strong seasonal support and catch-up positioning are supporting stocks, key risks still loom for investors, said Daniel Murray, deputy chief investment officer and global head of research at EFG Asset Management.
Those include “that the Fed is less dovish than investors currently assume,” Murray said, along with “a delayed tariff impact that sees inflation higher for longer and cracks starting to widen in the labor market.”
Europe led declines in global bonds after the European Central Bank’s Isabel Schnabel became the first senior official to suggest with any certainty that European rates have reached a floor. US Treasuries extended losses, with the 10-year yield rising one basis point to 4.15%.
The dollar was little changed, while Bitcoin traded below $92,000.
Corporate News
- US President Donald Trump raised potential antitrust concerns around Netflix Inc.’s planned $72 billion acquisition of Warner Bros. Discovery Inc., noting that the market share of the combined entity may pose problems.
- L’Oreal SA is doubling its stake in Galderma Group AG to 20%, as the French cosmetics company increases its bet on skincare drugs.
- Unilever Plc’s spinoff The Magnum Ice Cream Co. opened below the reference price in its market debut on Monday,
- Pop Mart International Group Ltd. shares dropped the most in over six weeks amid renewed concern that the Chinese toymaker’s US sales growth momentum is slowing.
Some of the main moves in markets:
Stocks
- The Stoxx Europe 600 was little changed as of 9:56 a.m. London time
- S&P 500 futures rose 0.1%
- Nasdaq 100 futures rose 0.2%
- Futures on the Dow Jones Industrial Average were little changed
- The MSCI Asia Pacific Index rose 0.2%
- The MSCI Emerging Markets Index rose 0.1%
Currencies
- The Bloomberg Dollar Spot Index was little changed
- The euro was little changed at $1.1650
- The Japanese yen was little changed at 155.46 per dollar
- The offshore yuan was little changed at 7.0668 per dollar
- The British pound was little changed at $1.3317
Cryptocurrencies
- Bitcoin rose 1.9% to $91,940.65
- Ether rose 2.3% to $3,157.53
Bonds
- The yield on 10-year Treasuries advanced one basis point to 4.15%
- Germany’s 10-year yield advanced two basis points to 2.82%
- Britain’s 10-year yield advanced three basis points to 4.51%
Commodities
- Brent crude fell 0.6% to $63.34 a barrel
- Spot gold rose 0.3% to $4,209.35 an ounce
This story was produced with the assistance of Bloomberg Automation.
Copyright Bloomberg News
