(Dec 1) : Asian stocks were set for a fairly muted open following modest US gains on Friday amid thin trading as investors kept their focus on economic data and an expected Federal Reserve interest-rate cut.
Equity-index futures pointed to flat starts for Australia and Japan, with a gain for Hong Kong, after a gauge of regional stocks posted its best weekly advance in two months. The S&P 500 rose 0.5% after a technical outage at the Chicago Mercantile Exchange disrupted premarket activity. Meantime, traders will be monitoring oil prices after OPEC+ said it’s planning to pause production increases during the first quarter.
The upcoming week offers a crucial snapshot of US economic momentum as policymakers weigh the trajectory of interest rates heading into 2026. With inflation and consumer demand under scrutiny, data is likely to shape expectations for whether the Fed continues its rate-cutting cycle. Markets are also bracing for potential shifts in central bank leadership with White House economic adviser Kevin Hassett signaling markets were ready for the announcement of a new Fed chair.
“For now, the data supports the soft landing, and that contributed to the continued equity rally ahead of Thanksgiving,” wrote Tom Essaye of the Sevens Report. “However, there remain a lot of economic unknowns right now and there are simmering risks that the economy is not as strong as investors believe given the lack of government data in recent months.”
The week begins with fresh data on US consumer spending, including Cyber Monday sales, and the release of more delayed economic indicators. Fed officials will review an outdated reading of their preferred inflation gauge ahead of the Dec. 9–10 policy meeting, where debate is expected to center on labor market conditions and the case for a third consecutive rate cut.
While the Fed enters its pre-meeting blackout period, Chair Jerome Powell and Governor Michelle Bowman are scheduled to speak, though they are barred from commenting on the economic outlook or policy.
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Other economic data in the coming week include ADP private employment figures for November, as well as Institute for Supply Management surveys of manufacturers and service providers. The Fed is also scheduled to release September industrial production figures.
Hassett, speaking on CBS’ Face the Nation on Sunday, declined to address whether he considers himself the front-runner to replace Fed Chair Jerome Powell, adding a positive market response to indications that US President Donald Trump could pick the next chair before the end of the year.
Markets are continuing to bet that the central bank will cut its benchmark next month. Swaps data shows traders have priced in almost a full quarter-point reduction since last week, when New York Fed President John Williams said he saw room to lower rates again in the near-term amid labor-market softness.
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China Factories
In Asia, data published Sunday showed that China’s factory activity improved but remained in contraction in November, extending its streak of declines to a record as the country’s economic slowdown deepens.
Attention will also turn to remarks from Bank of Japan Governor Kazuo Ueda on Monday, with markets alert to any signals on the likelihood of a December rate hike.
Elsewhere, airlines across the world raced to keep their fleets operating after a major software glitch forced an urgent update for Airbus SE’s most widely flown aircraft, with the rapid response avoiding a major meltdown during a crucial holiday-travel season.
Amid the disruptions caused by the hours-long CME outage, metals surged on Friday, with silver and copper hitting fresh records. Gold traders faced a volatile session and resumed a climb as trading was restored, advancing more than 1%.
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