Key Takeaways

• Japan’s inflation accelerated as export growth increased, raising expectations of a potential Bank of Japan rate hike and influencing global trading market sentiment on 21 November 2025.
• This trading market press review also examines the retreat in US equities, a stronger dollar, and new market transparency measures in the European Union.
• Top story: Japan’s inflation climbs as exports strengthen, increasing pressure for a Bank of Japan policy shift.
• US equities declined as the Nvidia rally lost momentum, with valuation concerns weighing on the sector.
• The dollar index strengthened, reflecting cautious sentiment ahead of the Federal Reserve meeting.
• The European Union advanced new rules to improve financial market transparency.
• Export-driven trends in Asia are increasingly shaping central bank policies across the region.

Introduction

On 21 November 2025, Japan’s inflation rose as robust export growth fueled expectations of a Bank of Japan policy shift. This forms the foundation of today’s trading market press review. In parallel, US equities retreated following weaker momentum in the technology sector and a firmer dollar index ahead of the Federal Reserve meeting. Global markets are navigating increased caution and regulatory changes.

Notizia principale

Japan’s inflation data for October 2025 showed a notable acceleration. Consumer prices excluding fresh food rose by 2.6% year-over-year. This increase was accompanied by stronger export figures, underpinned by demand from the United States and Southeast Asia.

Bank of Japan officials signaled that policy reviews are ongoing. Several market participants now expect a shift from the longstanding ultra-loose stance. Some analysts, including those at Nomura, stated that the latest data increases the likelihood of a rate hike in the first quarter of 2026.

Japanese government bond yields climbed in response. The yen appreciated against the US dollar in early trading on 21 November 2025. This combination of rising inflation and export strength has heightened attention on the Bank of Japan’s policy trajectory in the coming months.

Also Today

US Equities Retreat as Nvidia Rally Fades

US equities dropped as the recent Nvidia-led rally lost steam amid mounting valuation concerns. The S&P 500 declined 0.3%, with technology stocks bearing most losses. Nvidia’s share price slipped after the company’s growth outlook raised questions about sustainability.

Other megacap stocks, including Apple and Amazon, experienced pullbacks which contributed to a wider decline in risk appetite. Market analysts from Morgan Stanley said that investors are reassessing exposure in high-valuation segments, particularly technology.

Dollar Index Strengthens Ahead of Federal Reserve Meeting

The dollar index advanced, reflecting risk-off sentiment as investors awaited the 26 November 2025 Federal Reserve meeting. Treasury yields rose, increasing market caution.

With traders anticipating few changes in monetary policy, the focus shifts toward the central bank’s guidance on the interest rate trajectory into 2026. Deutsche Bank strategists noted that cautious positioning is likely to continue until inflation and labor market data provide clearer signals.

EU Advances Financial Market Transparency Rules

The European Union’s finance ministers endorsed new rules to improve transparency and supervision in financial markets. The proposals target real-time reporting and stricter oversight of over-the-counter derivatives.

Officials stated that these measures stem from lessons learned during the 2020 market volatility and aim to bolster investor confidence. The draft regulation will be presented to the European Parliament for debate on 12 December 2025.

Mercati in sintesi

Mixed Global Equity Performance

Global equities showed mixed performance on 21 November 2025. In the United States, the S&P 500 and Nasdaq Composite both declined, led by weakness in technology stocks. The Dow Jones Industrial Average was stable, supported by strength in consumer staples.

European equities ended higher, with the STOXX Europe 600 up 0.4%. Gains were supported by easing inflation data and optimism over upcoming rate decisions. The FTSE 100 advanced 0.2% despite currency strength, while the DAX rose 0.7%.

Asian markets were mixed. Japan’s Nikkei 225 gained 0.8% on robust export data. Hong Kong’s Hang Seng index declined 1.2% because of concerns over Chinese manufacturing.

Fixed Income and Commodities

US Treasury yields increased, with the 10-year yield reaching 4.35% amid speculation about Federal Reserve policy direction. The spread between two- and ten-year notes narrowed to -13 basis points, signaling ongoing inversion but less pronounced than in prior weeks.

Gold prices fell 0.8% to $2,623 per ounce as real yields moved higher. Oil prices were steady, awaiting supply data and OPEC’s next meeting.

What to Watch

• Personal Consumption Expenditures (PCE) inflation data release on 25 November 2025, the Federal Reserve’s preferred inflation measure
• Nvidia earnings release on 26 November 2025 after market close
• US nonfarm payrolls and employment report on 5 December 2025
• European Central Bank monetary policy decision and press conference on 11 December 2025 at 14:30 CET
• Bank of Japan policy announcement on 18 December 2025, with possible focus on rate decisions

Conclusion

Persistent inflation in Japan and a stronger dollar are influencing global rate expectations. This emphasizes the need for disciplined positioning as monetary policies diverge across regions. Shifts in technology earnings, differing bank results, and contrasting trends in global PMIs underscore the importance of targeted analysis for traders. What to watch: PCE inflation data on 25 November 2025, key central bank policy announcements, and scheduled communications from Federal Reserve officials in the weeks ahead.