On Monday, the US stock indices corrected after hitting record highs at the end of last week. The Dow Jones (US30) decreased by 0.51%. The S&P 500 (US500) fell by 0.35%. The tech-heavy Nasdaq (US100) closed lower by 0.46%. The primary pressure once again came from the technology sector amid growing doubts about the justification of high valuations for AI-related companies. The sell-off was led by Nvidia and Tesla, while weakness also affected Oracle and Palantir, as investors continue to question whether massive AI investments by software developers and data center operators can translate into comparable earnings growth.
European stock markets ended Monday with moderate gains, supported by strengthening shares in automakers and the technology sector. The German DAX (DE40) rose by 0.04%, the French CAC 40 (FR40) closed up 0.10%, the Spanish IBEX 35 (ES35) gained 0.13%, and the British FTSE 100 (UK100) closed at negative 0.04%. Investors continued to assess the regional geopolitical situation, attempting to gauge whether the momentum of the strong rally can persist into the beginning of next year.

On Tuesday, silver recovered by more than 1%, rising toward $73 per ounce following a sharp collapse in the previous session, the strongest daily decline in five years, triggered by profit-taking. The metal continues to find support from its safe-haven status amid ongoing geopolitical tensions, including prolonged and unstable negotiations between Russia and Ukraine, rising risks surrounding Iran, and increased Chinese military activity near Taiwan. Despite high short-term volatility, the medium-term outlook for silver remains positive.

WTI oil prices consolidated around $58.1 per barrel on Tuesday after a sharp increase of over 2% the day before, driven by intensified geopolitical risks. Uncertainty regarding a settlement of the conflict in Ukraine rose again following Moscow’s statements about a possible revision of its negotiating position, despite recent signals from the US and Ukraine of progress, with key issues remaining unresolved. Additional tension is building over the situation in Venezuela, where production has reportedly begun to halt in a key region following US actions. Nevertheless, despite short-term geopolitical support, the oil market overall remains under pressure: prices have declined by nearly 20% since the start of the year, marking the sharpest annual drop since 2020 amid expectations of sufficient global supply.

The US natural gas prices rose toward the $4 per MMBtu mark, maintaining most of their recovery from a two-month low recorded in late December. Prices were supported by prognoses of colder weather, which boosted expectations for increased heating demand in early January and prompted utility companies to build positions in short-term contracts. An additional factor was EIA data showing a storage withdrawal of 166 billion cubic feet for the week ending December 19, a level exceeding the seasonal norm that pushed inventories below five-year averages. This occurred despite record production, as the expansion of LNG export capacity and European restrictions on Russian gas continue to support external demand for American LNG.

Asian markets traded mixed yesterday. The Japanese Nikkei 225 (JP225) fell by 0.44%, the Chinese FTSE China A50 (CHA50) rose by 0.10%, the Hong Kong Hang Seng (HK50) dropped 0.71%, and the Australian ASX 200 (AU200) showed a negative result of 0.42%.