On Tuesday, the Dow Jones Index (US30) fell by 0.62%. The S&P 500 Index (US500) declined by 0.24%. The tech-heavy Nasdaq Index (US100) closed higher by 0.23%. The November labor market report indicated a moderate cooling of the economy: employment growth was only 64K, accompanied by a sharp downward revision of October data and an increase in the unemployment rate to 4.6% – the highest level since 2021. Weaker US labor market and consumption data strengthened expectations for further Fed easing in 2026. Stagnant retail sales served as an additional signal of weakening demand. The energy sector pressured the indices due to oil prices falling below $55 per barrel, while tech giants traded mixed; gains in Nvidia, Meta, and Tesla, along with a recovery in Broadcom and Oracle, supported the Nasdaq.

The Mexican peso (MXN) strengthened above 18 per US dollar, hitting its highest level since July 2024, amid dollar weakness and the maintenance of a relatively tight monetary policy in Mexico. At the same time, Mexico’s November inflation came in above expectations at approximately 3.8%, and the core indicator accelerated to the mid-4% range, confirming Banxico’s cautious stance. Consequently, attractive real rates and a stable yield differential continue to support capital inflows and demand for the peso.

European stock markets mostly declined yesterday. Germany’s DAX (DE40) fell by 0.63%, France’s CAC 40 (FR 40) closed lower by 0.23%, Spain’s IBEX 35 (ES35) dropped by 0.70%, and the UK’s FTSE 100 (UK100) closed negative 0.68%. Preliminary PMI indices indicated mixed dynamics in the Eurozone economy: overall private sector activity slowed due to weakness in the services sector and a continuing slump in manufacturing. Germany was the key factor in the deterioration, where the decline in manufacturing activity intensified, while in France, the slowdown in the services sector was more pronounced than the market expected, heightening concerns regarding the region’s growth rate.

Silver (XAG) hit an all-time high on Wednesday, rising toward $66 per ounce, driven by increased demand for alternative assets following the mixed US labor market report. Silver is further supported by fundamental factors: since the beginning of the year, the metal has appreciated by nearly 130% amid declining inventories and steady demand from industry and retail, particularly from the solar energy, electric vehicle, and data center sectors.

On Tuesday, WTI oil prices fell by more than 2%, trading around $55.5 per barrel, the lowest level since early 2021. This brought year-to-date losses to approximately 22%, the worst annual performance since 2018. Expectations that the war in Ukraine might be nearing an end increased the likelihood of easing restrictions on Russian oil supplies, which would limit potential supply disruptions in an already well-supplied market. Simultaneously, economic data from China points to ongoing weakness in the world’s second-largest economy, clouding the demand outlook. However, downside risks were partially offset by the possibility of US military action in Venezuela following the Trump administration’s seizure of a supertanker last week.

Asian markets traded lower on Tuesday. Japan’s Nikkei 225 (JP225) fell by 1.56%, China’s FTSE China A50 (CHA50) declined by 1.11%, Hong Kong’s Hang Seng (HK50) was down 1.54%, and Australia’s ASX 200 (AU200) showed a negative result of 0.42%.

The Australian dollar remained virtually unchanged, holding around $0.662, breaking its recent decline as latest government budget adjustments had no notable impact on central bank policy expectations. The budget deficit for the 2025/26 financial year is expected to be slightly lower at AUD 36.8 billion due to higher-than-projected tax revenues, while bond issuance plans remained unchanged. Amid steady spending, investors increased expectations that the Reserve Bank of Australia (RBA) might need to raise the cash rate from the current 3.6% as early as June to curb inflation: analysts at CBA and NAB now allow for a rate hike in February, while Westpac considers such a move premature.