Stocks Drop, Bitcoin Slides in Weak December Start: Markets Wrap
(Bloomberg) — Global stocks and bonds started December under pressure as a renewed selloff in cryptocurrencies and hawkish comments from the Bank of Japan weighed on sentiment.
S&P 500 futures fell 0.5%, while Nasdaq 100 contracts dropped 0.6%. European equities also slipped, led by weakness in real estate stocks. Bitcoin tumbled 4.8% to slide below $87,000, with most major tokens following suit.
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Asia’s regional equities gauge retreated 0.3%. Japanese stocks led the declines and the yen strengthened after Governor Kazuo Ueda offered his clearest hint yet that the BOJ may be nearing a rate hike. The two-year bond yield held at its highest level since 2008 following his remarks.
The week is set to deliver a crucial snapshot of the US economy as policymakers weigh the path of rates heading into 2026. Traders are also bracing for a shift in the Federal Reserve’s leadership, after President Donald Trump said on Sunday that he has settled on his choice for the next chair.
“The drop in Bitcoin is weighing on sentiment and so are the comments from the BOJ,” said Andrea Tueni, head of sales trading at Saxo Banque France. “The market is still hesitating a bit ahead of the upcoming macro data and before the Christmas rally people typically expect.”
The MSCI All Country World Index fell 0.1% in November after rising for seven straight months. The rally halted as optimism around high-flying AI stocks faltered due to rising concerns about stretched valuations and excessive spending plans.
The global equities gauge rose an average 0.5% in December over the last 10 years, historical data compiled by Bloomberg show.
The Bloomberg Dollar Spot Index held steady on Monday after four days of losses. Elsewhere, WTI crude oil jumped after OPEC+ confirmed it will stick with plans to pause production hikes during the first quarter. Silver and copper also climbed after hitting fresh records on Friday.
BOJ, Fed
The BOJ “will consider the pros and cons of raising the policy interest rate and make decisions as appropriate” by examining the economy, inflation and financial markets at home and abroad, Ueda said Monday in a speech to local business leaders in Nagoya, central Japan. Traders see about an 80% chance of a rate hike when the central bank concludes its next policy meeting on Dec. 19.
For the US, this week begins with fresh data on consumer spending. Fed officials will review an outdated reading of their preferred inflation gauge ahead of the Dec. 9–10 policy meeting, where debate is expected to center on labor market conditions and the case for a third consecutive rate cut.
Markets are continuing to bet that the central bank will cut its benchmark this month.
Meanwhile, White House economic adviser Kevin Hassett signaled markets were ready for the announcement of a new Fed chair. People familiar with the matter last week said that Hassett was seen as the likely choice to succeed Powell. Speaking on CBS’ Face the Nation on Sunday, he declined to address whether he considers himself the front-runner.
The yield on 10-year Treasuries rose three basis points on Monday while the rate on two-year notes edged higher to 3.50%.
While the Fed enters its pre-meeting blackout period, Powell and Governor Michelle Bowman are scheduled to speak, though they are barred from commenting on the economic outlook or policy.
Other data in the coming week include ADP private employment figures for November, as well as Institute for Supply Management surveys of manufacturers and service providers. The Fed is also scheduled to release September industrial production figures.
“Investors are cautious to add risk ahead of upcoming US data and macro events,” said Jung In Yun, chief executive officer at Fibonacci Asset Management Global. This looks like a wait-and-watch approach, he said.
Corporate News
Airbus SE said the vast majority of the about 6,000 A320-family aircraft impacted by a software glitch have received the necessary modification over the weekend, helping the European planemaker sidestep a wider disruption in what has become the company’s largest recall to date. EQT AB and CVC Asia Pacific Ltd. scrapped talks with AUB Group Ltd. about a possible takeover offer that had valued the Australian insurance broker at around A$5.2 billion ($3.4 billion). AUB shares slumped. South Korean authorities are investigating a data leak at online retailer Coupang Inc. that exposed about 33.7 million accounts in what could be the widest hack for the country of 51.7 million people. BYD Co. will push a software update to almost 90,000 plug-in hybrid vehicles in China after the national regulator said manufacturing defects in battery packs pose safety risks. Stocks
The Stoxx Europe 600 fell 0.2% as of 8:56 a.m. London time S&P 500 futures fell 0.5% Nasdaq 100 futures fell 0.6% Futures on the Dow Jones Industrial Average fell 0.4% The MSCI Asia Pacific Index fell 0.3% The MSCI Emerging Markets Index was little changed Currencies
The Bloomberg Dollar Spot Index was little changed The euro rose 0.1% to $1.1611 The Japanese yen rose 0.4% to 155.54 per dollar The offshore yuan was little changed at 7.0686 per dollar The British pound fell 0.2% to $1.3214 Cryptocurrencies
Bitcoin fell 4.8% to $86,833.32 Ether fell 6.1% to $2,839.18 Bonds
The yield on 10-year Treasuries advanced three basis points to 4.04% Germany’s 10-year yield advanced three basis points to 2.72% Britain’s 10-year yield advanced four basis points to 4.48% Commodities
Brent crude rose 2% to $63.63 a barrel Spot gold was little changed This story was produced with the assistance of Bloomberg Automation.
–With assistance from Youkyung Lee, David Finnerty and Julien Ponthus.
©2025 Bloomberg L.P.
