This market report reviews macroeconomic and market developments in November and December 2025. In the US, delayed jobs data showed weak payroll growth—just 64,000 in November—while the unemployment rate rose to 4.6%, the highest since 2021. Wage growth slowed to 0.1%, and the job market remains constrained by tighter immigration policies. The Fed cut interest rates by 0.25% to a range of 3.50%–3.75%, while also announcing renewed Treasury purchases amid liquidity concerns.

Euro area inflation ticked up to 2.2% in November, with the ECB expected to hold rates steady at its December meeting. Inflation diverged across the bloc: Cyprus held steady at 0.2%, while Greece jumped to 2.9%.

Oil prices dropped 7% over the month due to oversupply fears and progress on a potential Russia-Ukraine peace deal. Gold surged 7.4% to record highs ($4,368), while Bitcoin fell 7.5% to $86,060 amid broader risk-off sentiment.

US equities reached new highs mid-December before pulling back on weak tech/AI performance. Nvidia, Microsoft, and Meta all saw notable declines, while the Dow and old economy stocks outperformed. European equities posted solid gains, with Germany’s DAX up 3.4%.

Yields rose across the board in the US and Europe, steepening the yield curve and boosting bank stocks. Cyprus 10-year yields rose to 3.17%. The EURO STOXX Banks Index is up 76% year-to-date, marking its best year ever.

The US dollar weakened modestly, with gains in the euro, sterling, and Canadian dollar. The yen fell sharply by 4.6% vs the dollar.