Not much calm, plenty of storm in store: World market themes for the week ahead

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What investors will be watching over the next seven days

Financial markets head into a December laden with uncertainty over geopolitics, global trade and economic growth, particularly in Europe, where France is in the cross-hairs over its budget.

So, November ends with the biggest monthly fall in the euro since early 2022, the steepest drop in German bond yields this year, the biggest bitcoin surge since February and one of the biggest monthly jumps in U.S. stocks this year. French bonds haven’t sold off too hard, but they’ve lagged the market so badly the premium France must pay to borrow over 10 years relative to Germany is back to 2012 crisis-era highs.TARIFF FEAR, STIMULUS FAITH

The biggest loser has been staunch U.S. ally Japan, with the Nikkei down about 1.4% since Trump’s Truth Social post, mostly led by auto stocks.’s “Made in America” list, with Toyota’s Camry sedan and Highlander SUV also rating highly. But another blowout jobs report, such as the one that shocked markets in October, could derail expectations for how much the Fed will be able to cut in the months ahead, potentially shaking an important pillar of the stocks rally.

 

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