Last week witnessed significant fluctuations in the international markets, underscored by the French government's successful vote against a motion of no confidenceAdditionally, the oil-producing alliance known as OPEC+ reached an agreement to postpone the revival of productionIn the United States, stock markets exhibited mixed results: the Dow Jones Industrial Average fell by 0.60%, while the Nasdaq Composite rose by 3.34%, and the S&P 500 managed a weekly increase of 0.96%. Across Europe, major stock indices ascended, with the UK's FTSE 100 increasing by 0.26%, Germany's DAX 30 rising by 3.86%, and France's CAC 40 climbing by 2.65%.

This week has plenty of engaging developments in store, particularly regarding the US Consumer Price Index (CPI) for November, a critical data point ahead of the Federal Reserve's upcoming meetingSeveral economies are poised to announce decisions on interest rates, with the European Central Bank, as well as the central banks of Canada and Switzerland, expected to cut rates, while Australia is anticipated to maintain its current rates

Meanwhile, geopolitical dynamics remain a pressing concern, with the situation in Syria escalating and political clarity in France and South Korea still uncertain.

The trend of interest rate cuts in developed countries continuesAustralia’s central bank is set to hold its final meeting of the year on Tuesday, with the consensus generally predicting that rates will remain unchanged, although there may be indications for a rate cut in February next yearLast week’s GDP growth data for the third quarter came in below expectations, prompting Finance Minister Chalmers to declare that the economy would struggle without robust spending from state and federal governments.

Looking at Canada, the central bank is scheduled to announce interest rate decisions on Wednesday, where the probabilities for a cut of either 25 or 50 basis points appear closely matchedEconomists at Scotiabank, led by Derek Holt, indicated that although Canada’s economy is under strain, the recent GDP report presents potential support for a slight rate cut

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Conversely, the looming prospect of high tariffs imposed by the US may prompt more expansive policies from Canadian policymakers.

Meanwhile, the Brazilian central bank is likely to declare another interest rate hike in an effort to combat inflationary pressuresFutures markets currently indicate an 80% chance of a 75 basis point increase, with a 20% chance for a 100 basis point hikeAccording to Tuvi, the deputy chief economist for emerging markets at Capital Economics, recent hawkish signals from government officials suggest the possibility of even larger measures being taken.

The Swiss National Bank is set to announce its rate decision on Thursday and, like Canada, exhibits notable disagreement concerning potential cutsCurrent market pricing suggests a roughly 55% chance of a 50 basis point cut gaining tractionEconomist De Bono from Pantheon Macroeconomics pointed out that recent soft inflation data indicates a likelihood of the Swiss central bank lowering its inflation forecast again

Given the recent strength of the Swiss franc, she anticipates this should suffice to encourage a reduction in the key policy rate to 0.5%.

The European Central Bank's decision will arrive last, with a rate cut seemingly inevitable—market expectations lean towards a 25 basis point reductionAttention will focus on the quarterly forecast and any potential guidance the ECB may provide for the upcoming yearDZ Bank analysts have released a report indicating that significant downward revisions to the latest economic outlook are unlikely.

In the US, all eyes will be on the upcoming December CPIJerome Powell, the Federal Reserve Chair, signaled a more cautious potential path for rate cuts in his speech last week“The good news is that we can be a bit more cautious in our search for neutral rates,” he notedMarket pricing for federal funds futures suggests that a rate cut of 25 basis points in December is nearly fully priced in.

Beyond the CPI, the Producer Price Index (PPI) for November is seen as an important indicator of inflationary pressures

Moreover, investors should also keep tabs on initial jobless claims, the month-on-month wholesale inventory changes for October, and indexes for import and export prices.

As the inauguration date in January approaches, it is crucial for investors to continue monitoring the latest policy statements and personnel appointments.

This week, significant corporate earnings reports are expected from companies like Oracle, Adobe, Broadcom, and Costco, promising insights into developments in artificial intelligence research and applications.

Turning our attention to commodities, international oil prices have hit a three-week low as OPEC+ decided to further delay the easing of production cuts without alleviating fears of an oversupply in crude oilThe near-month WTI crude contract dropped by 1.18% to settle at $67.20 per barrel, while Brent crude fell by 1.00% to end at $71.12 per barrel.

OPEC+ has agreed to extend the timeline for production increases to April of next year

According to Syklara, a portfolio manager with Aptus Capital Advisors, “Currently, OPEC feels constrained; demand is inadequate to meet the supply in the free marketIf prices do not crash, the market simply cannot absorb the 6.5 million barrels per day of idle capacity, which poses risks to the budget deficit for many member countries, especially Saudi Arabia.”

Market analyst Rachazada from City Index mentions that traders are assessing whether these initiatives are sufficient to offset global demand and oversupply challengesThe lack of a more vigorous market response from oil prices signals widespread disappointment.

In the precious metal space, international gold prices showed slight weakening as investors remain focused on the future trajectory of U.Sinterest ratesCOMEX gold futures for delivery in January settled at $2654.9 per ounce, marking a weekly decline of 0.97%.

Interesting developments were also noted on the employment front, with a significant rise in U.S

job growth in November; however, this does not necessarily imply a substantial shift in labor market dynamicsAllegiance Gold’s COO, Ebkalin, remarked, “The data is nuancedWe see non-farm payroll numbers exceeding predictions, which could reflect short-term bearish sentiment for gold, yet private employment figures come in slightly lower than expected, further affirming the Fed might resume its rate cuts in the following weeks.”

Senior market strategist Wyckoff from Kitco Metals stated, “This non-farm report mainly belongs to the 'Goldilocks' group, meaning the data is neither too hot nor too cold, indicating that the Fed could continue to lower rates at the December meeting.”

In Europe, the region continues to face a tumultuous autumnLast week, the French National Assembly approved the no-confidence vote, which raises the specter of a political deadlock that could paralyze the country and endanger its public finances.

Christine Lagarde, President of the European Central Bank, stated in her address at the European Parliament that the economic outlook for the Eurozone is becoming increasingly uncertain amid escalating threats to international trade