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At the close of Thursday, the Dow Jones Index (US30) rose by 0.14%. The S&P 500 Index (US500) gained 0.79%, and the tech-heavy Nasdaq Index (US100) closed higher by 1.38%. The US stock markets grew steadily on Thursday amid unexpectedly soft US inflation data. Annual inflation in November slowed to 2.7%, below market expectations, while the core figure fell to 2.6% – the lowest level since spring 2021 – fueling expectations of further Fed rate cuts next year. The consumer and technology sectors were the main drivers of growth, with Micron Technology shares soaring approximately 10% following strong quarterly earnings and a positive outlook.

The Mexican Peso (MXN) strengthened to around 18 per US dollar, its highest level since July 2024, after the Bank of Mexico, as expected, lowered its key interest rate by 25 basis points to 7%. This move, part of an ongoing monetary easing cycle that began about a year ago, reflects the regulator’s confidence that inflation will gradually return to the 3% target, despite core inflation remaining above 4% and weak domestic economic dynamics.

European stock markets grew confidently yesterday. Germany’s DAX (DE40) rose by 1.00%, France’s CAC 40 (FR40) closed up 0.80%, Spain’s IBEX 35 (ES35) gained 1.15%, and the UK’s FTSE 100 (UK100) finished 0.65% on Thursday. The ECB, as expected, left interest rates unchanged and reaffirmed its commitment to a data-dependent, meeting-by-meeting approach, as updated growth and inflation forecasts for 2026 provided no reason to revise the current policy course. At the press conference, ECB President Christine Lagarde noted that inflation is in a “narrow range,” and core inflation has not changed significantly, remaining near the 2% target. In the region, the Norwegian and Swedish central banks also kept rates unchanged, while the Bank of England, as expected, cut them by 25 basis points.

The US natural gas prices (XNG) fell approximately 3% to $3.9 per MMBtu, nearing a seven-week low. Price pressure is stemming from record-high production volumes and comfortable inventory levels: December production in the Lower 48 states is estimated at 109.7 billion cubic feet (bcf) per day, comparable to November’s record levels. According to EIA data, 167 bcf of gas was withdrawn from storage for the week, slightly lower than market expectations, indicating that inventories still exceed the five-year average by about 0.9%.

Palladium prices (XPD) rose to $1,720 per ounce, reaching their highest level since January 2023, amid expectations of rising demand and shrinking supply. The market was supported by regulatory changes in Europe: the European Commission proposed softening the ban on internal combustion engines to 2035, lowering the emission-reduction target from 100% to 90%, and allowing the sale of some non-electric vehicles after 2035. This decision potentially supports palladium demand, as gasoline and hybrid vehicles still require catalytic converters.

Asian markets mostly rose on Wednesday. Japan’s Nikkei 225 (JP225) fell by 1.03%, China’s FTSE China A50 (CHA50) declined by 0.32%, Hong Kong’s Hang Seng (HK50) rose by 0.12%, and Australia’s ASX 200 (AU200) showed a positive result of 0.04%.

• S&P 500 (US500) 6,774.76 +53.33 (+0.79%)
• Dow Jones (US30) 47,951.85 +65.88 (+0.14%)
• DAX (DE40) 24,199.50 +238.91 (+1.00%)
• FTSE 100 (UK100) 9,837.77 +63.45 (+0.65%)
• USD Index 98.44 +0.07% (+0.07%)
   

News feed for: 2025.12.19

• Japan National Core CPI (m/m) at 01:30 (GMT+2); – JPY (HIGH)
• Japan BoJ Interest Rate Decision at 05:00 (GMT+2); – JPY, JP225 (HIGH)
• Japan BoJ Monetary Policy Statement at 05:00 (GMT+2); – JPY, JP225 (HIGH)
• Japan BoJ Press Conference at 06:30 (GMT+2); – JPY (MED)
• UK Retail Sales (m/m) at 09:00 (GMT+2); – GBP (MED)
• Canada Retail Sales (m/m) at 15:30 (GMT+2); – CAD (MED)
• US Existing Home Sales (m/m) at 17:00 (GMT+2). – USD (MED)

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