Recap: Markets got early start to holiday season, set for quiet year-end period

There was a slew of major macro events slated for this week, but markets only mustered a limited response.

Here's a quick recap:

• Tue, Dec 16: The US unemployment rate hit 4.6%, its highest since 2021. The headline nonfarm payrolls (NFP) figures showed a mixed picture.
• Wed, Dec 17: UK inflation came in lower than expected, with the headline consumer price index (CPI) even printing a 0.2% contraction month-on-month (Nov 2025 vs. Oct 2025).
• Thur, Dec 18: As widely expected, the Bank of England (BoE) cut rates while the European Central Bank (ECB) left its own rates unchanged.
  However, the BoE sent out a "hawkish" signal suggesting that future UK rate cuts may be more gradual, while the ECB essentially signaled that its recent rate-cutting cycle is over.

• Thur, Dec 18: The US CPI data (a.k.a. headline inflation) did come in lower than expected, as the core CPI (which excludes volatile food and energy prices) posted its slowest growth since 2021.

  Although the likes of Bitcoin, Gold, and the S&P 500 got an initial boost ... 

The apparent cooling in US inflation did little to alter market expectations for a Fed rate cut in January, with such odds now around 27%.