Market Report

U.K. & European markets were weaker Wednesday after the European Commission released preliminary data showing its economic sentiment indicator had dropped 1.7 points in the EU which was below its long-term average.  Consumer Confidence in the euro area also decreased, marking the second consecutive monthly decline in European consumer sentiment.

Separate data out of Germany also showed an unexpected fall in industrial orders in November.

US stocks edged lower as tech stocks struggled to recover from Tuesday’s sell-off and traders geared up for Friday’s jobs report for clues on the pace Federal Reserve rate cuts over the next few months.  Ongoing inflation concerns have stoked fresh wariness on the markets, with worries that a pressure cooker of price increases is heating up again.  The unpredictability of the incoming Trump administration and the potential impact of his tariff plan on inflation also added to concerns, amid expectations of a higher for longer rate environment, with 10-year Treasury yields rising to around 4.68% the highest level in eight months.

 The US market will close Thursday in observance of a National Day of Mourning for former President Jimmy Carter.

Gold prices continued to rise as uncertainty surrounding US President-elect Trump’s tariff plans, trade war fears, geopolitical tensions and a softer risk tone were key factors acting as a tailwind for the safe-haven bullion.

Oil prices trimmed earlier gains as the U.S. Dollar strengthened.  The dollar’s safe haven status is appreciated as fears of renewed U.S. inflationary pressures grow.

In company news, Lloyd’s of London announced Wednesday that CEO John Neal will leaving in 2025, after leading the insurance and reinsurance marketplace for over 6 years. 

Neal will be joining Aon as its global CEO of reinsurance and global chairman of climate solutions, with the leaving date to be confirmed in due course.