
Markets remain focused on Wednesday’s Federal Reserve decision, with traders pricing in an 89% chance of another 25 bps rate cut. Recent softer PCE inflation data boosted expectations of easier policy and helped U.S. indexes notch a second straight winning week.
Nvidia gained more than 2% in after-hours trading, lifting semiconductor sentiment. However, Stock futures were steady on Tuesday despite Nvidia’s performance after President Trump approved H200 chip sales to China under a deal that gives the U.S. government a 25% revenue cut.
Asia-Pacific markets traded mostly lower on Tuesday as investors turned cautious ahead of the U.S. Federal Reserve’s December 10 meeting, where a 25 bps rate cut is widely expected. Japan’s Nikkei rose 0.15%, while the Topix was flat. Australia’s ASX 200 declined after the RBA held rates at 3.6%.
Investors are awaiting Wednesday’s interest rate decision and economic projections from the Fed to position for 2026. This resulted in fluctuations in the prices of gold and silver. Gold fell below $4,200 yesterday and is currently trading around $4,175 per ounce. Silver has also fallen below $58 and is currently trading at $57.19 per ounce.
Oil prices also came under pressure as Iraq announced the reopening of a key oil field and confirmed plans to restore production flows that had been disrupted before. This raised expectations of additional barrels hitting the market at a time when global demand remains uneven.
In the Forex market,GBPUSD breakout above the 1.3275–1.3280 zone has strengthened the bullish outlook for the pair. With daily chart indicators staying positive, the pair could extend gains toward 1.3365, and a move beyond that level may open the door for a retest of 1.3400 and even 1.3455–1.3460 before targeting the 1.3500 psychological mark.
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