- As traders retreated from their bullish predictions that central bankers would lower interest rates in time to prevent a recession, US equities contracts fell.
- Treasury rates remained stable at 4.2%, and futures pointed to another day of losses for the S&P 500, which had risen last week to its highest level since March 2022 on expectations the Federal Reserve would soon switch to monetary easing.
- As November's epic rally fades, investors are beginning December filled with doubt. The widely held belief that US central bankers can achieve a "Goldilocks" scenario by implementing early and rapid rate cuts in 2024 is now up for debate. The US jobs data later this week is regarded as a crucial component in understanding the economy and the risk that wage growth will fan inflation and result in higher borrowing costs for longer.
- UK interest rate swaps bring forward expectations for the first BoE rate cut, almost fully priced in for June 2024.
- Moody's affirms China's A1 rating, changing the outlook to negative.
- ECB's Schnabel: Soft data suggests that the economy may be bottoming out; there is no prolonged recession seen.
