Weekly Market Review - 08-12-2025

Eloise Bell
Dec 8, 2025
5 min read

This week’s edition of the Weekly Market Review provides a clear snapshot of how global markets are positioning themselves as we move deeper into December. Equity performance remained mixed across major regions, while fresh commentary from central banks and policymakers offered additional insight into the economic landscape heading into 2026. We also cover notable developments in commodities, geopolitics and ESG regulation, alongside a concise look at the key data releases to watch in the week ahead. As always, the review brings together verified sources and timely market data to help keep you informed in a fast-moving environment.

Market Recap.

The FTSE 100 ETF fell 0.21%, reflecting a broadly subdued tone across UK equities. In the United States, performance was mixed. The Dow Jones Industrial Average ETF rose 0.34%, while the S&P 500 ETF slipped 0.09%. The Nasdaq 100 ETF gained 0.51%, supported by strength in technology names despite ongoing sector rotation. Overall, markets navigated a steady flow of macroeconomic signals as investors assessed the path for interest rates into year-end.

News.

An assessment by The Economist highlighted the diverging fortunes of the world’s major economies in 2025. The United States maintained solid momentum, supported by resilient consumer spending, a robust labour market and continued investment in high-value industries. India extended its position as the fastest-growing major economy, benefiting from strong domestic demand, expanding manufacturing capacity and favourable demographic trends. In contrast, much of Europe struggled with weaker productivity, softer demand and structural constraints that limited growth despite ongoing policy support. Several economies grappled with energy costs, sluggish industrial output and muted private investment, echoing challenges that have persisted since the pandemic era. These differences highlight the shifting balance within the global economy, showing where underlying strengths remain and where vulnerabilities have become more pronounced as investors look ahead to 2026 and assess the durability of the current recovery.

Inflation.

Federal Reserve Chair Jerome Powell signalled that conditions remain broadly consistent with the case for a rate cut, despite some dissent within the Federal Open Market Committee. According to reporting from Bloomberg, Powell noted that inflation is continuing to drift lower and that recent data support a cautious but credible path toward policy easing. However, some policymakers expressed concern about loosening too quickly before price pressures have fully stabilised. The remarks reinforced market expectations that the Fed remains on track to shift policy in early 2026, provided disinflation continues as forecast.

Central Banks.

French President Emmanuel Macron called for a rethink of how the European Central Bank approaches monetary policy, arguing that the institution should adapt to a rapidly changing economic landscape. He highlighted concerns that the ECB’s current framework may not adequately account for structural shifts in investment needs, industrial competitiveness and long-term growth ambitions across the bloc. Macron’s comments come amid broader debate over the appropriate balance between inflation control and economic support, with policymakers weighing how best to position the eurozone for sustainable expansion in the years ahead.

Commodities.

Gold moved higher over the week, trading near US $4,228/oz, supported by a softer US dollar and renewed demand for defensive assets amid ongoing policy uncertainty. Silver also strengthened, ending the week close to US $49.60/oz as investors maintained a steady rotation into precious metals. In energy markets, oil prices edged up, with Brent crude rising to around US $63.70/barrel and WTI nearing US $59.80/barrel following signs of supply restraint from OPEC+ and modest stabilisation in demand indicators. Overall, the backdrop remains mixed: precious metals continue to benefit from risk-off sentiment, while crude oil remains constrained by uneven global demand and persistent concerns about oversupply.

ESG.

The UK government announced new measures aimed at addressing potential conflicts of interest within the ESG ratings industry. Under the proposed rules, providers will be required to meet higher standards of transparency and governance, improving the reliability and comparability of sustainability assessments across listed companies. The reforms are intended to strengthen investor confidence in ESG data, support better-informed capital allocation and ensure that ratings methodologies are applied consistently. Markets broadly welcomed the adjustments as a constructive step toward improving oversight of a sector that continues to grow in influence.

Geopolitics.

Russian President Vladimir Putin visited India for a two-day summit, where he was welcomed by Prime Minister Narendra Modi as both countries sought to deepen economic and strategic ties. The visit comes at a time of heightened geopolitical pressure, with Washington urging India to scale back its purchases of Russian oil and bilateral trade imbalances becoming more pronounced. Discussions focused on energy cooperation, defence procurement—including advanced air-defence systems and fighter jets—and the broader role of India and Russia within an increasingly multipolar world order. For Moscow, India remains a crucial partner amid Western sanctions, while for New Delhi, the talks were a test of its strategic autonomy as it balances relationships with Russia, the US and Europe.

Week Ahead.

United States: In the United States, the focus turns to labour-market indicators, with the next weekly jobless-claims report scheduled for Thursday, 11 December 2025, offering an updated view on employment conditions. Investors will also monitor business-survey data released throughout the week as they assess whether recent signs of cooling are becoming more entrenched. These updates come ahead of the Federal Reserve’s next policy meeting, expected to take place on 9–10 December 2025, where policymakers will evaluate whether progress on inflation and slowing demand is sufficient to support the case for rate cuts early in the new year.

Eurozone: Across the Eurozone, the flow of new macroeconomic information is similarly limited. Key updates on GDP and employment for the third quarter have already been published, leaving attention centred on whether any additional inflation or confidence indicators emerge over the coming days. While no major euro-area releases are currently listed for the week ahead, markets will track central-bank communication closely as the European Central Bank continues to evaluate the balance of risks and the appropriate stance of monetary policy as the bloc moves toward 2026.

United Kingdom: In the United Kingdom, the data calendar remains light, with no major official releases scheduled for this week, according to the latest ONS publication schedule. With headline indicators absent, market attention is likely to be guided by commentary from policymakers and private-sector surveys, particularly those capturing early sentiment heading into the final weeks of the year. Investors will be looking for signals on how households and businesses are responding to the evolving policy backdrop and to recent shifts in financial conditions.