Market Information Thursday 11 December 2025

The Federal Reserve cut rates to 3.5 to 3.75 percent for a third consecutive time, as unemployment reached 4.4 percent and inflation held at 2.8 percent. Divisions widened over whether labour softness or persistent prices pose the greater risk, with three dissents marking the sharpest split since 2019. Markets steadied as officials kept their outlook of only one cut in 2026 while upgrading growth to 2.3 percent.

China’s consumer prices rose 0.7 percent in November while producer prices fell 2.2 percent, underscoring persistent deflationary pressure despite modest food driven inflation. Weak domestic demand continues to weigh on the nineteen trillion-dollar economy even as it approaches its five percent growth target. Analysts expect further policy support as falling prices and sluggish spending hinder a durable recovery.

Brazil is set to hold its Selic rate at 15 percent for a fourth meeting as inflation expectations remain above the 3 percent target despite slowing output and a mere 0.1 percent rise in third quarter GDP. Annual inflation eased to 4.5 percent in mid-November, but policymakers remain wary of fiscal risks ahead of the 2026 election. Markets now look for signals of a shift toward cuts early next year as activity cools and rate guidance softens.

The 6M Euribor increased with 2 basis points to 2.17% compared to previous business day. The 10Y Swap is unchanged at 2.90% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.