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Morning Bid: Just a blip for risk assets, more Fed pain for the dollar

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Morning Bid: Just a blip for risk assets, more Fed pain for the dollar

LONDON, Dec 3 (Reuters) – By Yoruk Bahceli, markets correspondent

What matters in U.S. and global markets today

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Risk assets are showing further signs of recovery on Wednesday from a broad selloff that kicked off the month, but bonds are sitting on their losses for now.

And the dollar is down with focus back to the Federal Reserve, with Trump delaying his pick for the next chair to 2026. Meanwhile, investors are stuck watching the ADP jobs report in the absence of November payrolls.

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I’ll get into all the market news below.

But first check out Mike Dolan’s latest column on why investors should worry less about so-called ‘vigilantes’ and pay more attention to bond-market ‘termites’.
And listen to the latest episode of the new Morning Bid, opens new tab daily podcast. Subscribe to hear Mike and other Reuters journalists discuss the biggest news in markets and finance seven days a week.

Today’s Market Minute

  • Russia and the U.S. did not reach a compromise on a possible peace deal to end the war in Ukraine after a five-hour Kremlin meeting between President Vladimir Putin and Donald Trump’s top envoys, the Kremlin said on Wednesday.
  • An acute global shortage of memory chips is forcing artificial intelligence and consumer-electronics companies to fight for dwindling supplies, as prices soar for the unglamorous but essential components that allow devices to store data.
  • China is likely to stick to its current annual economic growth target of around 5% next year, government advisers and analysts said, a goal that would require authorities to keep fiscal and monetary spigots open as they seek to snap a deflationary spell.
  • It’s been almost 10 months since the Democratic Republic of Congo, the world’s dominant cobalt supplier, halted exports of the battery metal, which has been a booster for the bombed-out cobalt price, writes ROI Mentals Columnist Andy Home.
  • Benchmark U.S. natural gas prices are ending 2025 just as they entered it – with a strong rally. And that’s bad news for people hoping for further cuts to U.S. coal use, writes ROI Global Energy Transition Columnist Gavin Maguire.

Was it all just a blip for risk assets?

The broad selloff that kicked the week off for markets is proving to be a blip for risk assets.

After dropping half a percent on Monday, the S&P 500 rose 0.25% on Tuesday and futures were up in early London trading.

Bitcoin was up another 1.7% after rising nearly 6% on Tuesday. But it remains 26% below an October peak.

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In other signs that it’s not all plain sailing, 10-year Treasury yields dipped on Wednesday but were still up 7 basis points this week, while Japan’s bond yields hit multi-year highs.

But in the absence of a narrative to drive markets, all focus remains on the Fed, its meeting next week where traders are banking on a rate cut, and who will lead it next.

U.S. President Donald Trump said on Tuesday he would announce his pick for the next Fed chair — largely expected to be White House economic advisor Kevin Hassett — early next year, later than previously expected, having previously said he already knows who he’ll pick.

Later on Tuesday, Trump said a potential Fed chair was present as he introduced Hassett at a meeting.

Bets on Hassett as the next Fed chair briefly dipped on betting site Polymarket on Tuesday, but quickly recovered.

Investors reckon Hassett, seen as favoring lower interest rates, could dent the dollar further. The euro and sterling reached their highest in over a month against the dollar on Wednesday as Fed rate cut bets continue to weigh on the dollar.

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Focus turns to economic data, though the prints are unlikely to sway the Fed.

November’s ADP report is expected to show private employers added 10,000 jobs, down from 42,000 in October, another sign of the labor market weakening.

While the ADP doesn’t correlate with the government’s jobs report, markets are watching alternatives more closely as November’s official one will only be released after the Fed meeting, thanks to the U.S. government shutdown.

The ISM services PMI is also due, following data on Monday showing a ninth month of contraction for the manufacturing sector.

Elsewhere, it’s all about geopolitics.

Russia and the U.S. did not reach a compromise on a possible Ukraine peace deal.
The European Union’s executive arm is set to move ahead with a proposal to use frozen Russian assets to fund lending to Ukraine. It’s also leaving open the possibility of raising funding through joint EU borrowing — an option financial markets would also welcome — or a combination of the two.

But Belgium, home to Euroclear where the assets sit and concerned over legal repercussions, was quick to say the new proposals still don’t address its concerns.

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The bloc also agreed to phase out Russian gas imports, which still account for 12% of its total imports, by late 2027.

Chart of the day

Chart shows Kevin Hassett is in the lead to chair the Fed on betting site Polymarket

White House Economic Advisor Kevin Hassett is still overwhelmingly seen as the candidate Trump will nominate to succeed Jay Powell as Federal Reserve Chair, according to betting site Polymarket.

Today’s events to watch

* ADP national employment report (November)

* U.S. industrial production (September)

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* ISM services PMI (November)

* S&P Global services, composite final PMIs (November)

* U.S. corporate earnings: Dollar Tree, Five Below, Macy’s, Thor Industries, PVH Corp, Torrid Holdings, Tillys

Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, opens new tab, is committed to integrity, independence, and freedom from bias.
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By Yoruk Bahceli; Editing by Bernadette Baum

Our Standards: The Thomson Reuters Trust Principles., opens new tab

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Critics say Turkey’s verbal attacks on Israel have crossed into antisemitism

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Critics say Turkey’s verbal attacks on Israel have crossed into antisemitism

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As Iran, Russia’s war with Ukraine and NATO’s defense spending dominate the organization’s summit in Ankara, one issue that has escaped the media glare is the increasingly antisemitic rhetoric coming from Turkish leaders.

As relations between Turkey and Israel continue to hit new lows, a war of words between the two nations has erupted.

In a July 2 interview with CNN Türk, Turkish Foreign Minister Hakan Fidan said Israel has “become a burden that humanity can no longer bear,” The Jerusalem Post reported. 

Fidan also said Israel is representative of “humanity’s common problems,” and asked other countries to apply pressure to the Jewish State, according to Israel National News.

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ISRAELI OFFICIAL SAYS EU SANCTIONS REVEAL ANTISEMITISM HIDING BEHIND ‘SOCIALLY ACCEPTABLE MASK’

Anti-Israel protesters rally in Istanbul, Turkey, Feb. 17, 2024, over the ongoing war between Israel and Hamas. (AP Photo/Khalil Hamra)

In a press statement, Israeli Foreign Minister Gideon Sa’ar called Fidan’s words “a clear call for genocide. The Jewish people know very well what happens when such words are allowed to go unchallenged. The first step on the road to genocide is dehumanization.

“This is a sentence that sounds very familiar to sentences from about 100 years ago,” Sa’ar added. “To speak about a people as a ‘problem for humanity.’ What do you do with a ‘burden that you can no longer bear?’” he asked.

Sinan Ciddi, a senior fellow at the Foundation for Defense of Democracies and director of FDD’s Turkey program, told Fox News Digital Fidan’s statement was “some of the vilest rhetoric to come out of any statesman since the Holocaust.”

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Turkish President Tayyip Erdoğan speaks during a rally in solidarity with Palestinians in Gaza amid the ongoing conflict between Israel and the Palestinian Islamist group Hamas in Istanbul, Turkey, Oct. 28, 2023.  (Dilara Senkaya/Reuters)

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Ciddi said escalated anti-Israel rhetoric in Turkey “goes all the way back to 2008,” when President Recep Tayyip Erdoğan “began the process of ripping apart the bilateral relationship between Israel and Turkey. But, after Oct. 7, it just went into overdrive,” he said. “I have never heard any Arab leader utter the words that Foreign Minister Fidan has said.”

Yet Erdoğan has condemned antisemitism; the Turkish Minute reported that he told Turkish religious minority representatives at an Ankara dinner in March that “just as Islamophobia is a crime against humanity, antisemitism is also a crime, an evil that cannot be considered reasonable or legitimate.”

Despite his recent condemnation, he and other ministers have continued with their rhetoric against the Jewish state.

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In June, Turkish Interior Minister Mustafa Ҁiftҁi said the world would “witness the liberation of Jerusalem,” according to the Times of Israel.

WHO IS TURKEY’S RECEP TAYYIP ERDOĞAN? HOW NATO’S MOST UNPREDICTABLE LEADER KEEPS REINVENTING HIMSELF

In May 2021, the Times of Israel reported that Erdoğan called Israelis “murderers,” claiming they were “only satisfied by sucking their [victims’] blood.” At the time, the State Department spokesperson issued a strong condemnation of Erdoğan’s “antisemitic comments regarding the Jewish people,” calling them “reprehensible.”

In May 2025, Erdoğan invoked similar language, accusing Israel of being “a terror state that feeds on the blood, lives and tears of the innocent,” Israel National News reported.

Israeli Foreign Minister Gideon Sa’ar, right, and Israeli Ambassador to the U.N. Danny Danon speak to journalists ahead of a United Nations Security Council meeting at U.N. headquarters on August 5, 2025 in New York (Angela Weiss/AFP via Getty Images)

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Anti-Israel sentiment in Turkey has infiltrated far beyond leadership. A Pew Research poll from June found that Turkey had the highest level of anti-Israel sentiment of any polled country, with 91% of the population holding “very unfavorable” views on Israel, 6% holding an “unfavorable” view, and just 1% expressing any favor of Israel.

In response to questions about whether the State Department plans to respond to antisemitic statements from Turkish leadership, a spokesperson told Fox News Digital that “Turkey is a longstanding and valued NATO ally, and we continue to engage on all aspects of our important and multi-faceted relationship.”

Ciddi said there are “numerous channels” for the State Department and Trump administration to reprimand Turkey for its unchecked hatred. 

“The president could obviously pull aside a Turkish counterpart and demand an apology,” he explained, while the State Department could address the comments or place Turkey on a watchlist.

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NATO leaders participate in a summit in The Hague, Netherlands, June 25, 2025.  (Handout/Latin America News Agency via Reuters Connect)

As the two-day NATO summit winds down in Ankara, Ciddi said Turkey “is going to try and overshadow anything else” and “promote itself as the sort of premiere NATO ally, so we need to watch out for Turkey’s whitewashing of its human rights record.

“We cannot safeguard our allies’ democratic norms, rights and practices if we don’t hold member states like Turkey accountable for the threats that it presents.”

The Turkish Embassy in Washington, D.C., did not respond to Fox News Digital’s request for comment.

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