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Stocks rise as weak US data boosts Fed cut hopes

Equity markets advanced midweek after softer US consumer confidence and retail sales data reinforced expectations for a Federal Reserve (Fed) rate cut in December. Major US indices closed higher on Tuesday, led by gains in Alphabet and Meta Platforms. In Asia, technology shares spurred a rally across the region, even as Australian inflation data trimmed hopes of local monetary easing. The rising expectations for a Fed rate cut in December alongside a weaker US dollar supported gold prices, which climbed to USD 4150 an ounce in Asian trading on Wednesday. Meanwhile, bitcoin was trading slightly lower around USD 87,700.

  • Date
  • Auteur Shane Strowmatt, Senior Investment Writer
  • Temps de lecture 5 minutes

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Asian equity markets climbed sharply on Wednesday, with technology shares leading gains as investors increased bets on a Fed interest rate cut in December. Japan’s Nikkei 225 was trading 1.9% higher at 49,582.00 points and Korea’s Kospi jumped 2.7% to 3960.87 points, supported by a surge in tech and industrial stocks linked to artificial intelligence. Australia’s S&P/ASX 200 was up 0.8%, despite stronger October inflation dampening expectations for local rate cuts. Consumer prices in Australia climbed by 3.8% year on year in October, according to official data released on Wednesday, surpassing both the 3.6% forecast by economists and marking the fastest increase since April. Hong Kong’s Hang Seng Index climbed 0.5%, lagging after a drop in Alibaba shares following mixed earnings, where mainland China’s CSI 300 rose 0.7% amid lingering concerns over the country's property sector and diplomatic tensions.

US equities gain as rate cut hopes rise

Major US stock indices extended their recent gains on Tuesday, supported by weaker-than-expected retail sales and a decline in consumer confidence, which increased investor expectations for a Fed rate cut in December. The Dow Jones Industrial Average climbed 1.4% to 47,112.45 points, while the S&P 500 rose 0.9% and the Nasdaq 100 added 0.6%. Shares in Google parent Alphabet and Facebook parent Meta Platforms outperformed after reports that Meta may purchase AI chips from Alphabet, with Alphabet’s stock nearing a USD 4 trillion market valuation and Broadcom also advancing. In contrast, chipmaker Nvidia declined 2.6% and rival AMD dropped over 4%.

US consumer confidence and retail momentum weaken

US consumer confidence fell in November, with the Conference Board’s index dropping by 6.8 points to 88.7, marking its lowest point since April, as households expressed greater concern about business conditions and the labour market. Retail sales for September rose just 0.2%, a softer pace than in August, reflecting more cautious consumer behaviour, while core retail sales slipped 0.1%. Meanwhile, producer price inflation quickened by 0.3% in September, mainly due to higher energy costs, and US private-sector employment declined over the same period, according to the ADP National Employment Report released on Tuesday. The combined reports suggest consumer spending remains resilient but increasingly dependent on higher-income households, with tariffs adding to price pressures. Market participants interpreted the results as supporting the case for a Fed rate cut in December.

German GDP stagnates in third quarter

Germany’s gross domestic product (GDP) showed no change in the third quarter of 2025 compared with the second quarter, following a similar flat result in the previous period, according to detailed figures released on Tuesday. Weak exports and a continued downturn in manufacturing and construction weighed on economic activity, while slight increases in capital formation and service-sector value added helped offset declines elsewhere. Compared with one year ago, GDP was 0.3% higher, as growth in government spending and some service sectors was partially offset by persistent weakness in exports and construction. Labour market conditions were broadly stable, with employment essentially unchanged year on year. Most major European equity indices finished higher on Monday. The Euro Stoxx 50 increased by 0.9%, while Germany’s DAX rose 1% and France’s CAC 40 advanced 0.8%. The Swiss Market Index gained 0.9%.

Corporate and economic calendar

Corporate news in focus: There is no major corporate news scheduled today.

Economic data in focus: UK autumn forecast statement (11:00), US building permits (14:30), US durable goods orders (14:30), US gross domestic product (14:30), US trade balance (14:30), US weekly initial jobless claims (14:30), US new home sales (16:00), US personal consumption expenditures (16:00), ECB President Christine Lagarde speaks (18:00), Federal Reserve Beige Book (20:00).

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