The latest Market Talks covering FX and Fixed Income. Published exclusively on Dow Jones Newswires throughout the day.
1009 GMT - The outlook for Asia-Pacific real estate remains positive, supported by a resurgence in regional investment volumes, according to DWS. "We expect demand-supply fundamentals to strengthen in coming years as elevated construction costs continue to constrain new supply, particularly for logistics and offices, with vacancy likely to tighten further in core locations," it says in a research note. The logistics and office sectors across key gateway cities in Australia, Japan, South Korea and Singapore may offer good entry points amid an upward rental cycle and recovering capital values, DWS adds. (tracy.qu@wsj.com)
1004 GMT - The Canadian dollar rises to a near five-month high against the U.S. dollar and could strengthen further if Canada's economic growth data for October at 1330 GMT exceed expectations, Monex Europe analysts say in a note. The consensus forecast for a 0.3% economic contraction appears too pessimistic, they say. "Canada's fundamentals have been improving, evident in strong recent jobs data." While there's a risk the data are overshadowed by U.S. third quarter economic growth figures due at the same time, there's a low bar for Canada's figures to exceed expectations and boost the Canadian dollar against its U.S. counterpart, they say. The U.S. dollar falls to a low of 1.3706 Canadian dollars. (renae.dyer@wsj.com)
0955 GMT - The Swedish krona is likely to continue outperforming the Norwegian krone in 2026, MUFG Bank analysts say in a note. The ongoing decline in oil prices has held back Norway's currency. Its underperformance would deepen if oil prices fall further next year due to a global supply glut, the analysts say. Moreover, the Norges Bank could cut interest rates once or twice next year as Norway's economy is expected to slow under a restrictive monetary policy stance, they say. "With the Riksbank set to keep rates on hold, narrowing yield differentials should favor a stronger Swedish krona." The Norwegian krone trades at 0.9121 Swedish kronor after hitting an eight-month low of 0.9046 overnight, LSEG data show. (renae.dyer@wsj.com)
0949 GMT - U.S. companies' new issuance of investment-grade debt increased 7% in 2025 to reach $1,671 billion, the second highest annual supply on record, CreditSights analysts say in a note. The increase highlights companies' "continued reliance on the public bond market as a stable source of long-term capital," the analysts say. The bulk of the issuance occurred in the first half of 2025, CreditSights says. (miriam.mukuru@wsj.com)
0941 GMT - The Monetary Authority of Singapore is unlikely to shift its policy settings in January, as long as core inflation stays at a "comfortable" 0.5%-1.5% on year, says OCBC chief economist Selena Ling in commentary. That is barring further tariff shocks, such as possible sectoral tariffs, or any duties stemming from an escalation in U.S.-China trade tensions, she says. Singapore's headline and core CPI both rose 1.2% on year last month. For December, Ling expects headline and core CPI to rise 1.0% and 1.2%, respectively. She projects the country's headline inflation at 0.9% for 2025, with core inflation expected at 0.7%. Both figures are likely to rise further next year to around 1.3%, she adds. (megan.cheah@wsj.com)
0913 GMT - Gold prices continue to gain after hitting new highs Monday due to safe-haven demand and a softer dollar on expectations of further Federal Reserve rate cuts next year. "Lower rates and a weaker dollar environment naturally improve the relative appeal of precious metals," Pepperstone research strategist Ahmad Assiri writes. Gold's move toward the $4,500 level reflects the market's comfort with higher prices rather than pure speculative, he adds. Futures in New York rise 1.2% to $4,522.60 an ounce having closed at $4444.60 Monday, marking its largest one-day dollar and percentage gain since Dec. 11. (ian.walker@wsj.com)
0852 GMT - Yields on U.K. government bonds fall, reversing Monday's rise, as concerns about the potential for an interest-rate increase in the eurozone fade. Media reports of comments by European Central Bank executive board member Isabel Schnabel that "no interest-rate increase is to be expected in the foreseeable future" reassured investors, Deutsche Bank Research strategists say in a note. Focus on Tuesday also turns to a batch of U.S. data due later Tuesday, including delayed third-quarter GDP data, where any weakness could boost prospects of U.S. interest-rate cuts next year. Ten-year gilt yields fall 2 basis points to last trade at 4.511%, Tradeweb data show. (miriam.mukuru@wsj.com)
0849 GMT - The euro rises to a one-week high against a weaker dollar as thinned holiday-trade increases volatility and as investors await a batch of U.S. data. Third-quarter U.S. economic growth data and durable goods orders will be released at 1330 GMT. Other U.S data include industrial production at 1415 GMT, and the Richmond Fed's manufacturing survey and Conference Board's consumer confidence survey at 1500 GMT. The data could influence expectations for interest-rate cuts by the Federal Reserve with a higher potential for big swings in the foreign exchange market due to reduced liquidity. The euro rises to a high of $1.1783, according to LSEG.(renae.dyer@wsj.com)
0848 GMT - Yields on eurozone government bonds fall, reversing some of their sharp gains on Monday which took German 10-year Bund yields to their highest since March. The rise followed a sharp increase in Japanese government bond yields, and came amid concerns about fiscal largesse in Germany and continuing budget problems in France. Yields turned lower in late trade on Monday after reported comments by the European Central Bank's Isabel Schnabel, who said rates would likely stay stable for some time, analysts say. Yields also fall ahead of a raft of U.S. data, including delayed third-quarter gross domestic product. The German 10-year Bund yield falls 3.8 basis points to 2.871%, having risen above 2.9% on Monday, Tradeweb data show. (jessica.fleetham@wsj.com)
0821 GMT - Sterling rises to a near 12-week high against the dollar and a two-week high against the euro amid reduced liquidity during the holiday-shortened trading week. Looking at sterling's performance, one could barely tell the Bank of England cut interest rates last week and that several weak economic indicators were released with more weakness likely following a growth-negative budget, Swissquote Bank's Ipek Ozkardeskaya says in note. "But this is less about sterling strength than about broad-based dollar selling." The dollar is weaker ahead of a string of U.S. data later that could influence Fed rate expectations. Meanwhile, thinned liquidity tends to lead to increased volatility. Sterling rises to a high of $1.3511. The euro falls to a low of 0.8716 pounds. (renae.dyer@wsj.com)
0812 GMT - The Indian central bank could deliver another rate cut in April, Nomura research analysts write in a note. The Reserve Bank of India's monetary policy committee minutes in December showed that several members were concerned that the low levels of inflation may be counterproductive for the economy, which triggered the unanimous vote to deliver a rate cut, they say. However, the MPC seems reluctant to signal that rate cuts are over and does not seem convinced about the resilience of the economic growth cycle, they add. Signals like core inflation, nominal GDP growth and current account deficit "do not suggest an economy running above potential," they write. Nomura expects the RBI to stand pat in February and deliver a 25bp cut in April. (kimberley.kao@wsj.com)
0807 GMT - Bitcoin falls back below $90,000 after failing to sustain gains above this level in the previous session when positive broad-based risk appetite boosted the cryptocurrency. Investors are turning cautious ahead of a batch of U.S. data later that have the potential to alter expectations for interest-rate cuts by the Federal Reserve. Reduced trading activity during the holiday-shortened week could also lead to increased volatility. The data include third-quarter economic growth data and durable goods orders at 1330 GMT, industrial production at 1415 GMT and the Richmond Fed's manufacturing survey and Conference Board's consumer confidence survey at 1500 GMT. Bitcoin falls 0.8% to $87,510 after reaching a one-week high of $90,466 Monday, LSEG data show.(renae.dyer@wsj.com)
(END) Dow Jones Newswires
December 23, 2025 05:09 ET (10:09 GMT)
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