Key Takeaways

• Top story: U.S. ISM Manufacturing PMI falls to 48.7, indicating a contraction in factory activity.
• Nomura finalizes its $1.8 billion acquisition of Macquarie’s asset management business, expanding its global presence.
• EUR/USD shows volatility ahead of anticipated European Central Bank policy signals.
• Oil inventories decline by 2.774 million barrels, tightening supply and impacting prices.
• What to watch: ECB policy updates and further PMI data are key for assessing upcoming market momentum.

Introduction

On 2 December 2025, the U.S. ISM Manufacturing PMI dropped to 48.7. This signals contraction and shapes a cautious outlook for market review trading dojo readers. As Nomura completes its $1.8 billion acquisition of Macquarie’s asset management arm, today’s review positions traders in the midst of shifting global dynamics that require disciplined focus and clear decision-making.

Top Story

U.S. ISM Manufacturing PMI Falls to 48.7

The U.S. ISM Manufacturing Purchasing Managers’ Index (PMI) declined to 48.7 in November 2025. It moved further below the 50.0 threshold that separates expansion from contraction. This reading indicates a continued slowdown in factory activity across the United States.

Analysts cited weakening demand for durable goods and long-running supply chain issues as contributing factors. The manufacturing sector has recorded sub-50 readings for most of 2025, underlining ongoing challenges despite resilient consumer spending in other parts of the economy.

Markets reacted cautiously. Equities edged lower and bond yields fluctuated as traders assessed the likelihood of additional Federal Reserve policy adjustments.

Also Today

Nomura Finalizes $1.8 Billion Macquarie Acquisition

Nomura has completed its $1.8 billion purchase of Macquarie’s asset management business. This move is set to broaden Nomura’s global asset management reach. The acquisition adds nearly $350 billion in assets under management and enhances Nomura’s competitive position in Asia-Pacific and Europe.

Nomura executives stated that this integration supports long-term strategic goals. That includes expanded product offerings and improved distribution across international markets.

EUR/USD Volatility Ahead of ECB Policy Signals

The EUR/USD exchange rate experienced heightened volatility as markets anticipated possible changes in European Central Bank (ECB) policy. Traders closely monitored speeches and statements from ECB officials ahead of the monetary policy decision scheduled for 4 December 2025.

Currency analysts noted that uncertainty over inflation and economic growth prospects in the Eurozone is driving short-term fluctuations, with markets seeking clarity on interest rate trajectories.

Oil Inventories Fall, Tightening Supply

U.S. oil inventories declined by 2.774 million barrels in the latest reporting week. The reduction tightens available supply, sparking price increases and renewed interest in energy sector equities.

Analysts attributed the drop to steady export demand and seasonal refinery activity. With OPEC+ delaying production increases, market participants remain alert to potential further supply constraints.

Market Wrap

Wall Street Retreats on Fed Rate Concerns

U.S. stock markets ended lower as investors processed unexpectedly strong economic data, which diminished hopes for near-term Federal Reserve rate cuts. The S&P 500 fell 0.9% to 6,278, and the Nasdaq Composite declined 1.4% to 21,340, breaking a five-day winning streak.

Bond markets responded with rising yields. The 10-year Treasury yield climbed to 3.82%, marking its highest level since October 2025. November’s manufacturing PMI reading (53.2 vs. 51.0 forecast) further contributed to concerns about delayed monetary easing.

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European Indices Mixed as Energy Leads

European markets posted mixed results. The pan-European STOXX 600 rose 0.3% to 523.4, while Germany’s DAX slipped 0.5% to 19,876 following weaker factory orders.

Energy shares outperformed, driven by a 2.3% rebound in oil prices to $79.80 per barrel. OPEC+’s decision to postpone production increases by three months supported the sector. Technology stocks mirrored U.S. declines and fell 1.8%.

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What to Watch

• ECB Monetary Policy Decision: 4 December 2025, with press conference at 14:30 CET
• U.S. November Jobs Report: 5 December 2025, 8:30 ET
• OPEC+ Ministerial Meeting: 7 December 2025
• Federal Reserve FOMC Announcement: 10 December 2025
• UK General Election: 11 December 2025
• Nvidia Q3 Earnings Report: 16 December 2025

Conclusion

The latest ISM Manufacturing PMI contraction highlights challenges for U.S. industry and sets a careful tone for global markets. Key trends include Nomura’s strategic acquisition activity, volatility in currency and oil markets, and ongoing uncertainty around central bank policy. Traders should focus on upcoming central bank decisions, major earnings releases, and confirmed macroeconomic events as detailed in the watchlist to guide their market review trading dojo discipline.

For actionable frameworks to adapt your approach and thrive in ongoing turbulence, visit the Trading Strategies pillar and review the Technical Analysis resource hub for the latest best practices.