Market Watch: Financial Conditions Ease at Fastest Pace in 40 Years, Raising Concerns for Markets and the Fed

Investors will be closely watching the nonfarm payrolls report for November to assess the resilience of the U.S. economy amid higher interest rates. The possibility of a Santa rally in U.S. stocks is being considered following comments from Fed Chair Jerome Powell indicating a more balanced approach to interest rate hikes. Oil prices are expected to remain volatile as skepticism lingers over the depth of OPEC+ supply cuts and concerns about sluggish global manufacturing activity persist. Central bank decisions in Australia and Canada will be monitored, while Eurozone data, including industrial production figures and corporate sentiment surveys, will provide insights into the region's economic performance.