Global Markets Adjust Positions Before 2026; Precious Metals Rebound

As the year draws to a close for many parts of the world, markets are adjusting positions before the arrival of 2026. Precious metals are recovering after a significant drop, while Asian stock exchanges are mostly holding steady. Wall Street closed slightly lower yesterday, weighed down by a downturn in the technology sector. Investors are awaiting the minutes from the Federal Reserve's latest meeting. Geopolitical tensions, including those between the U.S. and Iran, remain a concern. European stock exchanges are expected to open slightly lower.

Precious Metals Volatility

Precious metals remain a focal point for investors, experiencing volatility before the year's end following a strong recovery in 2025. Silver rebounded by over 3% to $75 per ounce after a 9% drop in the previous session, which followed a historic surge fueled by speculative trading and supply shortage fears. This surge had led to a year-to-date gain of about 140%, surpassing $80 per ounce for the first time. Gold rose by 0.6% to $4,365, after losing over 4% yesterday, but remains up about 70% for the year.

Other Metals

Copper recorded its longest series of gains since 2017, driven by supply chain tension expectations. Nickel reached its highest level since March, after Indonesia signaled intentions to cut supply to increase prices.

Wall Street's Performance

The main Wall Street indices closed lower yesterday, with major technology stocks losing ground after reaching peaks the previous week that had propelled the S&P 500 to new record highs. The Dow closed down 0.51%, the S&P 500 down 0.35%, and the Nasdaq down 0.5%.

Tech Stocks Decline

Nvidia fell by 1.2%, while Palantir Technologies decreased by 2.4%. Tesla dropped 3.3% after reaching a record high the previous week, impacting the consumer goods sector. The materials sector also declined, with precious metals mining companies falling after the sharp drop in precious metals. Energy stocks gained almost 1%, following a 2% increase in oil prices.

Banking Sector and Corporate News

The banking sector also declined yesterday, after a strong rally this year. Citigroup lost 1.9% after announcing an expected after-tax loss of approximately $1.1 billion from the sale of its remaining assets in Russia to Renaissance Capital. However, the stock has gained nearly 68% year-to-date. Digital Bridge increased by 9.6%, with SoftBank set to acquire the digital infrastructure investor in a deal valued at $4 billion. In after-hours trading, DigitalBridge jumped over 40%.

Market Optimism and Outlook

Many analysts remain optimistic for the end of the year and early next year, drawing parallels to historical upward trends. Despite recent weakness, all three Wall Street indices are on track for solid monthly gains, with the Dow Jones and S&P 500 rising for the eighth consecutive month. Analysts say the bull market, which began in October 2022, remains intact despite concerns about high valuations in technology companies and market volatility. With operators optimistic about artificial intelligence, interest rate cuts, and a resilient U.S. economy, all three major indices are set to record their third consecutive annual increase, and most strategists predict further gains in 2026. Expectations include continued global economic expansion, further monetary easing by the Federal Reserve, and potential peace prospects in Ukraine. The S&P 500 has increased by about 17% this year.

Minutes from the Fed meeting on December 9, where the fourth rate cut of the year was decided, are expected today. Futures on Wall Street indices currently indicate a flat opening.

Currency Movements in Asia

Several of Asia's strongest currencies are gaining attention as the year concludes, with the South Korean won, Thai baht, and Chinese yuan leading the way.

Won and Baht

The won, approaching a level last seen during the global financial crisis, has recovered since mid-last week, supported by authorities. Conversely, the baht, the second-best performing Asian currency this year, is losing ground due to fears that the central bank may curb the rally, threatening the country's exports.

Chinese Yuan

In China, the Chinese yuan strengthened beyond the key level of 7 per dollar in the onshore market for the first time since 2023, reflecting confidence in further currency appreciation. The Chinese currency has appreciated by about 4.3% this year.

Asian Markets Overview

Asia-Pacific stock exchanges are interrupting a positive streak of seven consecutive sessions of gains, with the benchmark index for the area down 0.2%, but up 25.7% since the beginning of the year.

Tokyo and Hong Kong

Tokyo's Nikkei is flat, up 26.5% since the beginning of the year. The yen is little changed at 156 per dollar. In Hong Kong, the Hang Seng index is up 0.8%, with a year-to-date increase of 28%. Insilico Medicine Cayman, a startup focused on AI-based pharmaceutical research, debuts today on the list with a boom in trading and a rise of 45%: in the IPO phase, the company raised $293 million. December was the most active month for the Hong Kong stock exchange in terms of listings in the last six years. The CSI 300 index of the Shanghai and Shenzhen stock exchanges is up 0.3% this morning, +18% since the beginning of the year.

The best annual performance is from Seoul's Kospi index with +75%, although it is down 0.4% this morning. Mumbai's BSE Sensex index is flat, +8% since the beginning of the year.

Commodities and Geopolitical Tensions

WTI crude oil is trading at $58 a barrel, down 17% since the beginning of the year. President Donald Trump has threatened another attack against Iran if the country attempts to rebuild its ballistic missile program or resume the nuclear program. "If that happens, we will have to intervene to stop them," Trump stated. "We will stop them. We will completely destroy them," he added, urging Tehran to reach an agreement with the United States. Bitcoin, after recovering to 90,000, is falling back towards $87,000.

European Markets Anticipation

European stock exchanges are expected to open slightly lower, based on indications from Eurostoxx 50 futures at -0.11%.

Italian Market Developments

In Italy, the Chamber is scheduled to hold the final vote on the Budget Law today.

In the first half of 2025, the Italian Stock Exchange consolidated a structural change in its ownership structure. The total value of listed companies rose to 808 billion euros, an increase of 151 billion compared to 2024 (+23%), confirming a robust expansion phase of the list. This emerges from the study by the Unimpresa Study Center, based on Bank of Italy data updated to June 2025.

Corporate News in Italy

Azimut has extended the binding exclusive agreement with Fsi Sgr regarding The Next Bank project, a digital bank for wealth management.

Leonardo and Fincantieri's defense stocks remain under the spotlight after yesterday's declines, due to statements about a possible peace in Ukraine.

Webuild, in a consortium, has been awarded a contract for a total of approximately 660 million euros as part of the works for the construction of the new Line 10 of the Naples subway.

Mondadori Group announced it has signed an agreement for the acquisition by Arnoldo Mondadori Editore of 58.84% of Edilportale.com for 31.2 million euros.

SS Lazio's coach, Maurizio Sarri, underwent heart surgery after atrial fibrillation, which had a positive outcome.

Key Economic Indicators

Here's a snapshot of key economic indicators:

Asian Stock Market Performance

Here's how key Asian stock markets are performing:

Precious Metals Price Movements

Here's a look at the recent price movements of precious metals:

Currency Performance

Here's a glimpse into the performance of some Asian currencies:

Here's a breakdown of key stock performances:

Key Takeaways from Market Analysts

Italian Company Highlights