Global Markets Mixed Amid Economic Uncertainty, Precious Metals Surge

Global markets presented a mixed picture today, with European stocks declining, Wall Street gaining momentum, and Asian markets showing positive results. Investors are seeking safe-haven assets, driving gold and silver to new record highs amid ongoing economic uncertainty.

European Markets Close Weakly

European markets closed lower today, primarily due to profit-taking as the holiday season approaches and hopes for peace in Ukraine remain distant. Milan fell by 0.35%, with Diasorin rising by 4.66% and Stellantis declining by 4.63%. Frankfurt decreased by 0.04%, London by 0.39%, Paris by 0.37%, Amsterdam by 0.2%, and Madrid by 0.05%.

Wall Street Gains Momentum

In contrast, Wall Street showed strength in early trading, supported by renewed confidence in AI stocks and expectations of a dovish Federal Reserve in 2026. The Dow Jones Industrial Average rose by 0.49%, the S&P 500 by 0.55%, and the Nasdaq by 0.55%. The Russell 2000 index of small-cap companies saw a significant increase of 1.61%.

Asian Markets Rise

Asian markets performed well, with Tokyo's Nikkei gaining 1.81% due to a weaker yen and tech stock purchases. Chinese markets responded positively to the central bank's decision to maintain interest rates.

Market Performance Leaders and Laggards in 2025

The Financial Times has published an initial ranking of winners and losers in the stock markets for 2025. The defense sector, particularly Rheinmetall (+154%), leads in Europe following Germany's decision to increase military investments. In Italy, Leonardo is among the top performers, with a 90% increase. In the U.S., the artificial intelligence and precious metals sectors have thrived, while consumer-related stocks have struggled due to tariffs.

Precious Metals Reach Record Highs

Gold and silver continue their strong performance, reaching new record prices. Spot gold traded above $4420 per ounce, rising nearly 2% after reaching a high of $4429.23. The surge is driven by strong demand for safe-haven assets amid global uncertainties. Prices are also supported by a weaker dollar and expectations that the Federal Reserve will cut rates by another quarter of a point twice in 2026.

Federal Reserve Leadership Change in 2026

A change in leadership is expected at the Federal Reserve in 2026, with President Donald Trump, who has long advocated for a more accommodative monetary policy, set to nominate Jerome Powell's successor when his term ends next May.

Impact of US-Venezuela Tensions on Oil Prices

Oil prices are rising due to tensions between the United States and Venezuela after the U.S. intercepted an oil tanker in international waters off the coast of Venezuela, raising concerns about supply disruptions. WTI and Brent crude futures are up by 2.3%, with prices at $57.83 and $61.82 per barrel, respectively.

Dollar Weakens Against the Euro

The dollar remains weak, with the euro trading up 0.4% against the dollar at 1.176. Despite recent stabilization, many investors expect the dollar's decline to resume next year as global growth recovers and the Federal Reserve further eases monetary policy.

Saipem Secures Major Contract

Saipem is among the top performers, rising by 4.33% after securing an EPCI contract from Qatar Energy worth approximately $3.1 billion for oil services alone and about $4 billion in total, in partnership with Offshore Oil Engineering. Eni also saw a good increase of 0.97%.

Telecom Italia's Positive Momentum

Telecom Italia continues its positive trend, rising by 2.55%. The company's board of directors approved the conversion of savings shares into ordinary shares at a ratio of 1:1, with a cash adjustment of 0.12 per savings share. This decision has boosted Telecom R shares by 8.6%. Analysts also view the return of the one billion concession fee favorably, although the Court of Cassation's decision was largely priced into the stock.

Nexi Gains on Acquisition Rumors

Nexi is up by 1.91% following reports that Cdp is considering increasing its stake in the digital payments leader to just under 30%, involving other Italian investors.

Other Notable Movers

Fincantieri is up by 0.61% on its debut on the FTSE MIB. Stellantis, Campari (-2.4%), and Ferrari (-0.9%) are down. Banks and utilities, which have performed well in recent months, are also weak today. Banco Bpm is down 0.93%, MPS 1.33%, Unicredit 0.88%, Hera 0.8%, Terna 0.78%, and Italgas 0.64%.

Outside the main index, Juventus continues to attract interest, rising by 2.14% after being upgraded to “hold” by Kepler Cheuvreux. The market is still watching for a potential Tether bid after the Agnelli family rejected the initial acquisition offer.

Italian Bond Yields Rise

Italian bonds closed in the red. The spread between the ten-year BTP and the German Bund of the same duration widened to 67 basis points (+3.55%), with yields rising to 3.57% and 2.9%, respectively.

Key Market Indicators

Here's a snapshot of key market indicators at the close of the day:

Wall Street Performance

Wall Street's performance in early trading:

Commodity Prices

A summary of commodity prices:

Currency Exchange Rates

Current currency exchange rates:

Key Italian Stocks

Performance of key Italian stocks:

Italian Bond Market

Sector Performance in Europe