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On Friday, the Dow Jones Index (US30) fell by 0.51% (for the week, +1.01%). The S&P 500 Index (US500) was cheaper by 1.07% (for the week, -0.70%). The tech-heavy Nasdaq Index (US100) closed lower by 1.69% (-1.87%). The US stock markets sharply declined on Friday amid a massive sell-off in the technology sector following a 11.4% drop in Broadcom shares, triggered by a warning about margin pressure. This prompted a rotation of capital from high-valuation stocks related to AI and semiconductors into more cyclical and defensive sectors. Significant losses were also incurred by Nvidia, Oracle, Palantir, AMD, and Micron, reflecting growing investor caution regarding the margin potential of AI companies, despite the Fed’s recent interest rate cuts. An additional factor was the comments from the Cleveland Fed President, who expressed a preference for a tougher policy to control inflation.

Bitcoin dropped below $90,000, hitting a two-week low amid the global sell-off in tech stocks and reduced risk appetite. Pressure intensified due to fears of inflated valuations and massive spending in the AI sector, as well as uncertainty surrounding the Fed’s policy trajectory for the next year. An additional negative factor was the warning from MicroStrategy CEO Michael Saylor about potential market consequences from MSCI’s initiative to exclude companies with over 50% digital asset holdings from its indices. Analysts estimate this could trigger significant capital outflow and increase the volatility of Bitcoin and related assets.

European stocks mostly went down on Friday. Germany’s DAX (DE40) fell by 0.45% (for the week, +0.71%), France’s CAC 40 (FR 40) closed lower by 0.21% (for the week, -0.37%), Spain’s IBEX 35 (ES35) fell by 0.28% (for the week, +1.46%), and the UK’s FTSE 100 (UK100) closed negative 0.56% (for the week, -0.19%).

WTI oil prices rose to $57.7 per barrel on Monday, partially recovering from last week’s over 4% drop, as geopolitical risks temporarily outweighed concerns about a global supply surplus. Prices were supported by increased US pressure on Venezuela, including the seizure of a tanker, the imposition of new sanctions, and a military buildup in the region, as well as supply disruption risks amid ongoing Ukrainian drone attacks on Russian oil infrastructure. The detention of a foreign tanker by Iran in the Gulf of Oman added another factor of uncertainty.

The price of silver (XAG/USD) pulled back below $62 per ounce on Friday after hitting record levels earlier in the session, as investors took profits and the market entered a short-term consolidation phase before the weekend. However, the overall bullish backdrop remains: the Fed’s recent rate cut and a less hawkish expectation support medium-term expectations, and Powell gave no signal of a return to tightening, pointing instead to further rate cuts in the following years. Strong ETF inflows and sustained retail demand are also fueling expectations of a silver deficit next year.

Asian markets traded without a single dynamic last week. Japan’s Nikkei 225 (JP225) rose by 0.38%, China’s FTSE China A50 (CHA50) declined by 0.40%, Hong Kong’s Hang Seng (HK50) was down 0.35%, and Australia’s ASX 200 (AU200) showed a positive result of 1.18% over the five days.

The offshore yuan strengthened to around 7.05 per dollar, hitting a high since late September, despite weak economic data from China. November statistics pointed to a slowdown in growth: retail sales sharply missed projections, industrial production declined more than expected, and fixed-asset investment showed the deepest slump since the pandemic, with the ongoing real estate crisis intensifying pressure on the economy. The deteriorating macroeconomic environment heightened expectations for new fiscal and monetary support measures early next year, which partially offset the negative sentiment.

The New Zealand dollar weakened to around $0.578, retreating from a two-month high after the Reserve Bank of New Zealand signaled its intention to keep the Official Cash Rate unchanged for an extended period. RBNZ Governor Breman noted that the economy is largely evolving in line with the regulator’s prognoses, and inflation is moving towards the 2% target by mid-2026. Market participants’ attention is now focused on upcoming macro statistics, including the third-quarter GDP report, though pressure on the currency is partially restrained by the continuing weakening of the US dollar amid a softer-than-expected stance from the Federal Reserve.

• S&P 500 (US500) 6,827.41 −73.59 (−1.07%)
• Dow Jones (US30) 48,458.05 −245.96 (−0.51%)
• DAX (DE40) 24,186.49 −108.12 (−0.45%)
• FTSE 100 (UK100) 9,649.03 −54.13 (−0.56%)
• USD Index 99.39 +0.05% (+0.05%)
   

News feed for: 2025.12.15

• Japan Tankan Large Manufacturers (m/m) at 01:50 (GMT+2); – JPY (LOW)
• China Industrial Production (m/m) at 04:00 (GMT+2); – CHA50, HK50 (MED)
• China Retail Sales (m/m) at 04:00 (GMT+2); – CHA50, HK50 (MED)
• China Unemployment Rate (m/m) at 04:00 (GMT+2); – CHA50, HK50 (MED)
• Eurozone Industrial Production (m/m) at 12:00 (GMT+2); – EUR (LOW)
• Canada Consumer Price Index (m/m) at 15:30 (GMT+2). – CAD (HIGH)

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