France’s consumer confidence indicator fell to 89.9 in November 2024, down from a revised 93.4 in October, staying below the long-term average of 100. This marked the weakest reading since June 2024, as consumers grew more pessimistic about their financial outlook (-13 vs. 8 in October) and standard of living (-51 vs. -43). Additionally, expectations for future savings declined (11 vs. 13), concerns about future employment increased (42 vs. 33), and views on major purchases became more negative (-30 vs. -29). Meanwhile, saving intentions rose slightly (38 vs. 37), and inflation expectations continued to decrease (-41 vs. -49).

European equity markets were poised for a subdued open on Wednesday, amid concerns that US President-elect Donald Trump could target European countries with tariffs following his recent threats against China, Mexico, and Canada. Investors were also cautious ahead of a key US inflation report that could influence the Federal Reserve’s plans for rate cuts. Meanwhile, market participants will be focused on the latest consumer confidence data from Germany and France, as well as EasyJet’s earnings report. In premarket trading, Euro Stoxx 50 futures dropped 0.15%, while Stoxx 600 futures were largely flat.

The Japanese yen strengthened past 152.5 per dollar on Wednesday, reaching its highest level in over two weeks, fueled by speculation that the Bank of Japan may raise interest rates in December. BOJ Governor Kazuo Ueda recently hinted at the possibility of a rate hike next month, citing concerns over the yen’s weakness. Investors are now awaiting Tokyo's inflation data later this week, which could offer further clues on the outlook for monetary policy. The yen also received support from increased safe-haven demand following US President-elect Donald Trump’s threat of tariffs on China, Mexico, and Canada. Additionally, the dollar and US Treasury yields retreated after the nomination of Scott Bessent as Treasury Secretary, leading traders to dial back on their "Trump trades."

Federal Reserve officials conveyed optimism that inflation is subsiding and the labor market remains robust, supporting the possibility of further interest rate cuts, though at a measured pace, minutes from November 6-7 meeting showed. Officials noted that monetary policy decisions are contingent on economic trends and cautioned against making premature rate cuts. The volatility in recent data and uncertainty about the neutral interest rate's impact on economic activity made policymaking particularly challenging. Some participants suggested keeping rates at restrictive levels if inflation persisted, while others advocated for accelerated cuts if labor markets weakened. The meeting avoided addressing the economic implications of Donald Trump’s recent presidential election victory but acknowledged the need for flexibility.

Profits earned by China's industrial firms declined by 4.3% yoy to CNY 5,868.04 billion in the first ten months of 2024, steeper than a 3.5% fall in the prior period. This reflected an economic downturn driven by persistently shaky demand, deflation risks, and property weakness. Profits in state-owned companies dropped further (-8.2% vs -6.5% in January-Sept), while those in the private sector fell much slower (-1.3% vs -9.6%). Among industries, profits shrank for non-metallic minerals (-49.6%), coal mining (-23.7%), chemicals (-7.7%), special equipment (-5.2%), electrical machinery (-5.1%), cars (-3.2%), and oil and natural gas (-1.8%). Meanwhile, petroleum and other fuels, and ferrous metal smelting turned from profits to losses. On the other hand, profits rose for non-ferrous metal smelting (40.0%), heat production (13.8%), textile (5.3%), computer, communications (8.4%), and agriculture, food (2.8%). Monthly, industrial profits shrank by 10.0% yoy, after a 27.1% slump in September.

The Reserve Bank of New Zealand lowered its official cash rate (OCR) by 50 basis points to 4.25% during its November 2024 policy meeting, marking the third consecutive rate cut this year and aligning with market expectations. The annual inflation rate in New Zealand slowed to 2.2% in Q3 2024, the lowest reading since March 2021, down from 3.3% in the previous quarter. Meanwhile, economic activity in New Zealand remains subdued, with output still below potential and employment growth expected to remain weak through mid-2025. With inflation now close to the midpoint of the policymakers' 1% to 3% target band, combined with weak GDP and labor market figures, the committee is increasingly confident about further easing monetary policy restraints.