Archive for Economics & Fundamentals – Page 14

New materials, old physics – the science behind how your winter jacket keeps you warm

By Longji Cui, University of Colorado Boulder and Wan Xiong, University of Colorado Boulder 

As the weather grows cold this winter, you may be one of the many Americans pulling their winter jackets out of the closet. Not only can this extra layer keep you warm on a chilly day, but modern winter jackets are also a testament to centuries-old physics and cutting-edge materials science.

Winter jackets keep you warm by managing heat through the three classical modes of heat transfer – conduction, convection and radiation – all while remaining breathable so sweat can escape.

A diagram showing a fireplace in a room. heat radiating off the fire is labeled 'radiation,' heat moving through the floor is labeled 'conduction' and heat moving up through hot air is 'convection'
In a fireplace, heat transfer occurs by all three methods: conduction, convection and radiation. Radiation is responsible for most of the heat transferred into the room. Heat transfer also occurs through conduction into the room’s floor, but at a much slower rate. Heat transfer by convection also occurs through cold air entering the room around windows and hot air leaving the room by rising up the chimney.
Douglas College Physics 1207, CC BY

The physics has been around for centuries, yet modern material innovations represent a leap forward that let those principles shine.

Old science with a new glow

Physicists like us who study heat transfer sometimes see thermal science as “settled.” Isaac Newton first described convective cooling, the heat loss driven by fluid motion that sweeps thermal energy away from a surface, in the early 18th century. Joseph Fourier’s 1822 analytical theory of heat then put conduction – the transfer of thermal energy through direct physical contact – on mathematical footing.

Late-19th-century work by Josef Stefan and Ludwig Boltzmann, followed by the work of Max Planck at the dawn of the 20th century, made thermal radiation – the transfer of heat through electromagnetic waves – a pillar of modern physics.

All these principles inform modern materials design. Yet what feels new today are not the equations but the textiles. Over the last two decades, engineers have developed extremely thin synthetic fibers that trap heat more efficiently and treatments that make natural down repel water instead of soaking it up. They’ve designed breathable membranes full of tiny pores that let sweat escape, thin reflective layers that bounce your body heat back toward you, coatings that store and release heat as the temperature changes, and ultralight materials.

Together, these innovations give designers far more control over warmth, breathability and comfort than ever before. That’s why jackets now feel warmer, lighter and drier than anything Newton or Fourier could have imagined.

Trap still air, slow the leak

Conduction is the direct flow of heat from your warm body into your colder surroundings. In winter, all that heat escaping your body makes you feel cold. Insulation fights conduction by trapping air in a web of tiny pockets, slowing the heat’s escape. It keeps the air still and lengthens the path heat must take to get out.

High-loft down makes up the expansive, fluffy clusters of feathers that create the volume inside a puffer jacket. Combined with modern synthetic fibers, the down immobilizes warm air and slows its escape. New types of fabrics infused with highly porous, ultralight materials called aerogels pack even more insulation into surprisingly slim layers.

Tame the wind, protect the boundary layer

A good winter jacket also needs to withstand wind, which can strip away the thin boundary layer of warm air that naturally forms around you. A jacket with a good outer shell blocks the wind’s pumping action with tightly woven fabric that keeps heat in. Some jackets also have an outer layer of lamination that keeps water and cold air out, and a woven pattern that seals any paths heat might leak through around the cuffs, hems, flaps and collars.

The outer membrane layer on many jacket shells is both waterproof and breathable. It stops rain and snow from getting in, and it also lets your sweat escape as water vapor. This feature is key because insulation, such as down, stops working if it gets wet. It loses its fluff and can’t trap air, meaning you cool quickly.

a diagram showing a jacket, with a zoomed in window showing a variety of fabric layers.
How modern jackets manage heat: Left, a typical insulated shell; right, layers that trap air, block wind, and reflect infrared heat without adding bulk.
Wan Xiong and Longji Cui

These shells also block wind, which protects the bubble of warm air your body creates. By stopping wind and water, the shell creates a calm, dry space for the insulation to do its job and keep you warm.

New tricks to reflect infrared heat

Even in still air, your body sheds heat by emitting invisible waves of heat energy. Modern jackets address this by using new types of cloth and technology that make the jacket’s inner surface reflect your body’s heat back toward you. This type of surface has a subtle space blanket effect that adds noticeable warmth without adding any bulk.

However, how jacket manufacturers apply that reflective material matters. Coating the entire material in metallic film would reflect lots of heat, but it wouldn’t allow sweat to escape, and you might overheat.

Some liners use a micro-dot pattern: The reflective dots bounce heat back while the gaps between them keep the material breathable and allow sweat to escape.

Another approach moves this technology to the outside of the garment. Some designs add a pattern of reflective material to the outer shell to keep heat from radiating out into the cold air.

When those exterior dots are a dark color, they can also absorb a touch of warmth from the sun. This effect is similar to window coatings that keep heat inside while taking advantage of sunlight to add more heat.

Warmth only matters if you stay dry. Sweat that can’t escape wets a jacket’s layer of insulation and accelerates heat loss. That’s why the best winter systems combine moisture-wicking inner fabrics with venting options and membranes whose pores let water vapor escape while keeping liquid water out.

What’s coming

Describing where heat travels throughout textiles remains challenging because, unlike light or electricity, heat diffuses through nearly everything. But new types of unique materials and surfaces with ultra-fine patterns are allowing scientists to better control how heat travels throughout textiles.

Managing warmth in clothing is part of a broader heat-management challenge in engineering that spans microchips, data centers, spacecraft and life-support systems. There’s still no universal winter jacket for all conditions; most garments are passive, meaning they don’t adapt to their environment. We dress for the day we think we’ll face.

But some engineering researchers are working on environmentally adaptive textiles. Imagine fabrics that open microscopic vents as the humidity rises, then close them again in dry, bitter air. Picture linings that reflect more heat under blazing sun and less in the dark. Or loft that puffs up when you’re outside in the cold and relaxes when you step indoors. It’s like a science fiction costume made practical: Clothing that senses, decides and subtly reconfigures itself without you ever touching a zipper.

Today’s jackets don’t need a new law of thermodynamics to work – they couple basic physics with the use of precisely engineered materials and thermal fabrics specifically made to keep heat locked in. That marriage is why today’s winter wear feels like a leap forward.The Conversation

About the Authors: 

Longji Cui, Assistant Professor of Mechanical Engineering, University of Colorado Boulder and Wan Xiong, Ph.D. Student in Physics and Mechanical Engineering, University of Colorado Boulder

This article is republished from The Conversation under a Creative Commons license. Read the original article.

 

Investors are entering 2026 with a cautious stance.

By JustMarkets 

The US equities concluded the final trading day of 2025 with declines as risks were trimmed and expectations for Fed policy were reassessed. At the close of Wednesday, the Dow Jones (US30) fell by -0.63%, the S&P 500 (US500) dropped by -0.74%, and the Nasdaq (US100) closed -0.76% lower. Despite the weak finish, the year proved strong: the S&P 500 gained approximately +16.6%, the Nasdaq +20.4%, and the Dow +13.2%. AI-related companies remained the primary driver, while the broader market balanced geopolitical risks, tariff uncertainty, high valuations, and shifting rate expectations. Disagreements within the Fed regarding the pace of easing in 2026 and sharp volatility in the precious metals market in late December amplified the cautious investor sentiment at the start of the new year.

The Canadian dollar weakened above the 1.37 level per U.S. dollar, retreating from its highest point since July amid deteriorating domestic macroeconomic signals and year-end strength in the greenback. Statistics Canada recorded a -0.3% contraction in real GDP for October, confirming an economic slowdown in the fourth quarter and weakening the case for a tighter policy stance compared to the U.S. Additional pressure came from falling oil prices, which reduced export revenues, as well as a widening yield spread: Canada’s 10-year bond yield dipped toward 3%, while the US 10-year yield holds near 4%.

On the final trading day of 2025, European equities held near all-time highs, closing the year with their best performance since 2021. The German DAX (DE40) was not traded on Wednesday, the French CAC 40 (FR40) closed down -0.23%, the Spanish IBEX 35 (ES35) fell -0.27%, and the British FTSE 100 (UK100) finished Wednesday down -0.09%. Growth was supported by relatively resilient macroeconomic dynamics and expectations for expanded fiscal spending in the region; key contributions came from the banking sector, which posted its best results since the late 1990s, and basic resource companies following the rally in precious metals.

On Wednesday, silver plummeted by more than -5% to $72 per ounce, correcting from a record high of $86.62 reached earlier in the week due to year-end profit-taking. The correction is technical in nature following a meteoric rally: in 2025, the metal appreciated by more than 150%, significantly outperforming gold and making it the strongest year in silver’s history. Looking ahead, analysts expect continued interest from both retail and institutional investors, especially given the likelihood of further Fed easing in 2026, which may limit the depth of corrections after such powerful growth.

The US crude oil (WTI) inventories for the week ending December 26 decreased by 1.93 million barrels, the largest weekly decline since mid-November and notably exceeding market expectations. Nevertheless, total commercial inventories remain high at year-end, approximately 423 million barrels, which is significantly above historical norms and points to a persistent global supply surplus despite geopolitical constraints, including the blockade of Venezuelan supplies and sanctions against Russian producers.

The US natural gas prices declined toward approximately $3.70 per MMBtu, a minimum since late October, amid forecasts of warmer weather and weakening short-term heating demand. The expected reduction in heating degree days and downward revisions to consumption forecasts suggest lower demand in the coming weeks, while prospects for production growth add pressure to prices. However, in the broader horizon, the market remains relatively resilient: in 2025, gas prices may rise by about 4% thanks to record LNG exports. In 2026, the market will likely be supported by structural factors, including increased electrification and higher gas usage in power generation, despite the expected further expansion of supply.

Asian markets mostly declined on the final day of 2025. The Japanese Nikkei 225 was not traded, the FTSE China A50 (CHA50) fell by -0.59%, the Hong Kong Hang Seng (HK50) dropped -0.87%, and the Australian ASX 200 (AU200) showed a negative result of -0.03% on Wednesday.
President Xi Jinping stated that China’s economy is on track to meet its 5% growth target for 2025. Furthermore, Xi Jinping indicated that in 2026, authorities intend to move toward a more proactive macroeconomic policy to sustain growth rates. The focus will be on innovative development and maintaining stability amid ongoing global uncertainty, signaling Beijing’s readiness to ramp up stimulus measures if necessary.

S&P 500 (US500) 6,845.50 −50.74 (−0.74%)

Dow Jones (US30) 48,063.29 −303.77 (−0.63%)

DAX (DE40) 24,490.41 0 (0%)

FTSE 100 (UK100) 9,931.38 −9.33 (−0.09%)

USD Index 98.28 +0.04% (+0.04%)

News feed for: 2026.01.02

  • Australia Manufacturing PMI (m/m) at 00:00 (GMT+2); – AUD (MED)
  • Eurozone Manufacturing PMI (m/m) at 11:00 (GMT+2); – EUR (MED)
  • UK Manufacturing PMI (m/m) at 11:30 (GMT+2); – GBP (MED)
  • Canada Manufacturing PMI (m/m) at 16:30 (GMT+2); – CAD (MED)
  • US Manufacturing PMI (m/m) at 16:45 (GMT+2). – USD (MED)

By JustMarkets

 

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

Has the Fed fixed the economy yet? And other burning economic questions for 2026

By D. Brian Blank, Mississippi State University and Brandy Hadley, Appalachian State University 

The U.S. economy heads into 2026 in an unusual place: Inflation is down from its peak in mid-2022, growth has held up better than many expected, and yet American households say that things still feel shaky. Uncertainty is the watchword, especially with a major Supreme Court ruling on tariffs on the horizon.

To find out what’s coming next, The Conversation U.S. checked in with finance professors Brian Blank and Brandy Hadley, who study how businesses make decisions amid uncertainty. Their forecasts for 2025 and 2024 held up notably well. Here’s what they’re expecting from 2026 – and what that could mean for households, workers, investors and the Federal Reserve:

What’s next for the Federal Reserve?

The Fed closed out 2025 by slashing its benchmark interest rate by a quarter of a percentage point – the third cut in a year. The move reopened a familiar debate: Is the Fed’s easing cycle coming to an end, or does the cooling labor market signal a long-anticipated recession on the horizon?

While unemployment remains relatively low by historical standards, it has crept up modestly since 2023, and entry-level workers are starting to feel more pressure. What’s more, history reminds us that when unemployment rises, it can do so quickly. So economists are continuing to watch closely for signs of trouble.

So far, the broader labor market offers little evidence of widespread worsening, and the most recent employment report may even be more favorable than the top-line numbers made it appear. Layoffs remain low relative to the size of the workforce – though this isn’t uncommon – and more importantly, wage growth continues to hold up. That’s in spite of the economy adding fewer jobs than most periods outside of recessions.

Gross domestic product has been surprisingly resilient; it’s expected to continue growing faster than the pre-pandemic norm and on par with recent years. That said, the recent shutdown has prevented the government from collecting important economic data that Federal Reserve policymakers use to make their decisions. Does that raise the risk of a policy miscue and potential downturn? Probably. Still, we aren’t concerned yet.

And we aren’t alone, with many economists noting that low unemployment is more important than slow job growth. Other economists continue to signal caution without alarm.

Consumers, the largest driver of economic growth, continue spendingperhaps unsustainably – with strength becoming increasingly uneven. Delinquency rates – the share of borrowers who are behind on required loan payments in housing, autos and elsewherehave risen from historic lows, while savings balances have declined from unusually high post-pandemic levels. A more pronounced K-shaped pattern in household financial health has emerged, with older higher-income households benefiting from labor markets and already seeming past the worst financial hardship.

Still, other households are stretched, even as gas prices fall. This contributes to a continuing “vibecession,” a term popularized by Kyla Scanlon to describe the disconnect between strong aggregate economic data and weaker lived experiences amid economic growth. As lower-income households feel the pinch of tariffs, wealthier households continue to drive consumer spending.

For the Fed, that’s the puzzle: solid top-line numbers, growing pockets of stress and noisier data – all at once. With this unevenness and weakness in some sectors, the next big question is what could tip the balance toward a slowdown or another year of growth. And increasingly, all eyes are on AI.

Is artificial intelligence a bubble?

The dreaded “B-word” is popping up in AI market coverage more often, and comparisons to everything from the railroad boom to the dot-com era are increasingly common.

Stock prices in some technology firms undoubtedly look expensive as they rise faster than earnings. This may be because markets expect more rate cuts coming from the Fed soon, and it is also why companies are talking more about going public. In some ways, this looks similar to bubbles of the past. At the risk of repeating the four most dangerous words in investing: Is this time different?

Comparisons are always imperfect, so we won’t linger on the differences between this time and two decades ago when the dot-com bubble burst. Let’s instead focus on what we know about bubbles.

Economists often categorize bubbles into two types. Inflection bubbles are driven by genuine technological breakthroughs and ultimately transform the economy, even if they involve excess along the way. Think the internet or transcontinental railroad. Mean-reversion bubbles, by contrast, are fads that inflate and collapse without transforming the underlying industry. Some examples include the subprime mortgage crisis of 2008 and The South Sea Company collapse of 1720.

If AI represents a true technological inflection – and early productivity gains and rapid cost declines suggest it may – then the more important questions center on how this investment is being financed.

Debt is best suited for predictable, cash-generating investments, while equity is more appropriate for highly uncertain innovations. Private credit is riskier still and often signals that traditional financing is unavailable. So we’re watching bond markets and the capital structure of AI investment closely. This is particularly important given the growing reliance on debt financing in some large-scale infrastructure projects, especially at firms like Oracle and CoreWeave, which already seem overextended.

For now, caution, not panic, is warranted. Concentrated bets on single firms with limited revenues remain risky. At the same time, it may be premature to lose sleep over “technology companies” broadly defined or even investments in data centers. Innovation is diffusing across the economy, and these tech firms are all quite different. And, as always, if it helps you sleep better, changing your investments to safer bonds and cash is rarely a risky decision.

A quiet but meaningful shift is also underway beneath the surface. Market gains are beginning to broaden beyond mega-cap technology firms, the largest and most heavily weighted companies in major stock indexes. Financials, consumer discretionary companies and some industrials are benefiting from improving sentiment, cost efficiencies and the prospect of greater policy clarity ahead. Still, policy challenges remain ahead for AI and housing with midterms looming.

Will things ever feel affordable again?

Policymakers, economists and investors have increasingly shifted their focus from “inflation” to “affordability,” with housing remaining one of the largest pressure points for many Americans, particularly first-time buyers.

In some cases, housing costs have doubled as a share of income over the past decade, forcing households to delay purchases, take more risk or even give up on hopes of homeownership entirely. That pressure matters not only for housing itself, but for sentiment and consumption more broadly.

Still, there are early signs of relief: Rents have begun to decline in many markets, especially where new supply is coming online, like in Las Vegas, Atlanta and Austin, Texas. Local conditions such as zoning rules, housing supply, population growth and job markets continue to dominate, but even modest improvements in affordability can meaningfully affect household balance sheets and confidence.

Looking beyond the housing market, inflation has fallen considerably since 2021, but certain types of services, such as insurance, remain sticky. Immigration policy also plays an important role here, and changes to labor supply could influence wage pressures and inflation dynamics going forward.

There are real challenges ahead: high housing costs, uneven consumer health, fiscal pressures amid aging demographics and persistent geopolitical risks.

But there are also meaningful offsets: tentative rent declines, broadening equity market participation, falling AI costs and productivity gains that may help cool inflation without breaking the labor market.

Encouragingly, greater clarity on taxes, tariffs, regulation and monetary policy may arrive in the coming year. When it does, it could help unlock delayed business investment across multiple sectors, an outcome the Federal Reserve itself appears to be anticipating.

If there is one lesson worth emphasizing, it’s this: Uncertainty is always greater than anyone expects. As the oft-quoted baseball sage Yogi Berra memorably put it, “It’s tough to make predictions, especially about the future.”

Still, these forces may converge in a way that keeps the expansion intact long enough for sentiment to catch up with the data. Perhaps 2026 will be even better than 2025, as attention shifts from markets and macroeconomics toward things that money can’t buy.The Conversation

About the Authors:

D. Brian Blank, Associate Professor of Finance, Mississippi State University and Brandy Hadley, Associate Professor of Finance and Distinguished Scholar of Applied Investments, Appalachian State University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

The US Federal Reserve plans to continue cutting rates. The Chinese yuan has strengthened to its highest level since 2020

By JustMarkets 

On Tuesday, the US stock markets showed restrained dynamics and are likely to end the year near recent all-time highs. The Dow Jones (US30) decreased by 0.20%. The S&P 500 (US500) fell by 0.14%. The technology-heavy Nasdaq (US100) closed lower by 0.24%. Investors are balancing expectations of sustainable economic growth and potential further Fed rate cuts on one hand, with persistent concerns regarding the overvaluation of AI-related companies on the other.

The minutes of the December Fed meeting showed that the majority of FOMC representatives allow for further interest rate cuts next year, provided that inflationary pressures gradually ease. However, notable disagreements persist within the committee: some participants fear that high inflation may become entrenched and believe it is necessary to keep borrowing costs elevated, while others advocate for more active policy easing amid signs of a cooling labor market. In December, the Fed lowered the federal funds rate by 25 bps to a range of 3.5-3.75%, marking the third cut of the year and meeting market expectations, although the decision was accompanied by a non-unanimous vote.

European stock markets continued to hit new all-time highs on Tuesday, receiving strong support from the banking and commodity sectors. The German DAX (DE40) rose by 0.57%, the French CAC 40 (FR40) closed with a gain of 0.69%, the Spanish IBEX 35 (ES35) increased by 0.93%, and the British FTSE 100 (UK100) closed at positive 0.75%. Investors generally ignored the increased volatility in the precious metals market and renewed uncertainty surrounding peace negotiations for Ukraine, focusing instead on expectations of further Fed policy easing in 2026.

Switzerland’s KOF Economic Barometer rose by 1.7 points to 103.4 in December 2025, reaching its highest value since September 2024 and exceeding market expectations. This indicates an overall improvement in economic prospects, primarily driven by the manufacturing sector.

On Wednesday, silver fell by more than 5% to around $72 per ounce amid year-end profit-taking, sharply retracing from its recent gains. Nevertheless, in 2025, the metal showed outstanding performance, briefly exceeding $80 per ounce due to limited supply and low inventories, and ending the year up approximately 162%, becoming one of the most profitable commodity assets and outperforming most stock indices and currencies. In the longer term, analysts maintain a positive outlook on silver. Interest in metals from both retail and institutional investors remains high, and structural factors, including silver’s strategic importance and limited supply, are capable of offsetting short-term volatility and price corrections.

WTI oil prices traded around $57.9 per barrel on the last trading day of 2025 and are ending the year with the sharpest decline since 2020 amid persistent fears of a global supply glut. Over the year, quotes decreased by almost 20%, and December could be the fifth consecutive month of negative dynamics, reflecting a combination of production growth from OPEC+ countries and non-OPEC producers alongside moderate rates of demand growth.

Asian markets mostly rose yesterday. The Japanese Nikkei 225 (JP225) fell by 0.37%, the Chinese FTSE China A50 (CHA50) rose by 0.14%, the Hong Kong Hang Seng (HK50) gained 0.86%, and the Australian ASX 200 (AU200) showed a positive result of 0.13%. Consumer sector stocks in Hong Kong rose, and financial companies showed a moderate climb following the publication of November trade data, which recorded the strongest growth in exports and imports in the last four years, indicating resilient external and internal demand. Additional positive sentiment came from the successful debuts of six Chinese companies on the Hong Kong exchange: most of them began trading above their offering prices, confirming high investor interest and strengthening the city’s status as the region’s key financial hub.

On Wednesday, the offshore yuan strengthened beyond 6.98 per dollar and held near a fifteen-month high following strong data on business activity in China. The Composite PMI rose to 50.7 in December, reaching a six-month peak, while the Manufacturing Index returned to the growth zone for the first time since March, and the Non-Manufacturing Sector Index hit a five-month high. Sentiment was further supported by private survey data, which also pointed to a recovery in industrial activity. As a result, the yuan is moving toward its most significant annual strengthening since 2020.

S&P 500 (US500) 6,896.24 −9.50 (−0.14%)

Dow Jones (US30) 48,367.06 −94.87 (−0.20%)

DAX (DE40) 24,490.41 +139.29 (+0.57%)

FTSE 100 (UK100) 9,940.71 +74.18 (+0.75%)

USD Index 98.22 +0.18% (+0.18%)

News feed for: 2025.12.31

  • China Manufacturing PMI (m/m) at 03:30 (GMT+2); – CHA50, HK50 (MED)
  • China Non-Manufacturing PMI (m/m) at 03:30 (GMT+2); – CHA50, HK50 (MED)
  • US Crude Oil Reserves (w/w) at 17:30 (GMT+2); – WTI (HIGH)
  • US Natural Gas Storage (w/w) at 19:00 (GMT+2). – XNG (HIGH)

By JustMarkets

 

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

Profit-taking is observed in precious metals. The US natural gas prices are rising amid declining inventories

By JustMarkets 

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%.

S&P 500 (US500) 6,929.94 −2.11 (−0.03%)

Dow Jones (US30) 48,710.97 −20.19 (−0.04%)

DAX (DE40) 24,340.06 +56.09 (+0.23%)

FTSE 100 (UK100) 9,870.68 −18.54 (−0.19%)

USD Index 98.05 +0.08% (+0.08%)

News feed for: 2025.12.30

  • Switzerland KOF Leading Indicators (m/m) at 10:00 (GMT+2); – CHF (MED)
  • US Chicago PMI (m/m) at 16:45 (GMT+2); – USD (MED)
  • US FOMC Meeting Minutes at 21:00 (GMT+2). – USD (MED)

By JustMarkets

 

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

Platinum and silver have hit new all-time highs. Oil prices are rising amid escalating geopolitical tensions

By JustMarkets 

On Tuesday, the Dow Jones (US30) rose by 0.16%, the S&P 500 (US500) gained 0.16%, and the Nasdaq (US100) closed 0.57% higher. The US equities saw a moderate decline on Wednesday after the S&P 500 hit a fresh all-time high the previous day, marking its fourth consecutive session of gains. Despite robust macro data, with US Q3 GDP growing at 4.3% YoY, its fastest pace in two years, driven by consumption, exports, and government spending, markets continue to price in Fed rate cuts for next year. Political pressure on the Fed intensified as National Economic Council Director Kevin Hassett stated the regulator is moving too slowly on easing, noting that the AI boom supports growth while simultaneously curbing inflation. The tech sector dominated again: Nvidia (+3%), Broadcom (+2.3%), and Amazon (+1.6%) extended their rallies, while Tesla corrected (-0.7%) after briefly hitting a new record. Trading activity is subdued due to the holiday schedule; US financial markets close early on Wednesday and will remain closed on Thursday and Friday for Christmas.

European equity markets mostly rose yesterday. The German DAX (DE40) climbed 0.23%, the French CAC 40 (FR40) dropped 0.21%, the Spanish IBEX 35 (ES35) rose by 0.14%, and the British FTSE 100 (UK100) closed up 0.24%. European stock markets opened without significant changes as the Christmas holidays began. Many platforms are operating on shortened schedules, and liquidity is noticeably decreasing. Investors are scaling back activity, and trading dynamics are expected to be driven by specific corporate news rather than macroeconomic factors. Most key regional exchanges will remain closed until Friday.
WTI prices rose to $58.6 per barrel on Wednesday, marking a sixth consecutive session of gains and reaching a two-week high fueled by geopolitical tensions. Prices were supported by US actions to intercept Venezuelan oil tankers and new strikes on energy infrastructure in the Black Sea region amid the Russia-Ukraine conflict. However, pressure remains from API data showing a 2.4 million barrel increase in crude inventories alongside builds in gasoline and distillates. Overall, oil remains influenced by expectations of a supply surplus next year, trending toward an annual decline of over 18%.

Silver (XAG) prices surpassed $72 per ounce on Wednesday, rising for a fourth straight session and hitting a new all-time high. The market is buoyed by expectations of US monetary easing and increased demand for safe-haven assets. Geopolitical tension added fuel to the rally after President Donald Trump ordered the blocking of Venezuelan oil tankers last week. Silver has gained approximately 149% year-to-date, supported by a structural supply deficit and its recent inclusion in the US critical minerals list.

Platinum (XPT) prices broke above $2,300 per ounce, marking a new historical peak amid supply shortages and high investment demand. This marks a ten-session winning streak, the longest since 2017. Year-to-date, the metal has soared over 150%, its best performance since the late 1980s. Key drivers include mining disruptions in South Africa, a third consecutive year of market deficit, anticipation of US Section 232 trade restrictions, and strong demand in China following the launch of platinum futures in Guangzhou.

Asian markets were predominantly higher yesterday. The Nikkei 225 (JP225) rose by 0.02%, the FTSE China A50 (CHA50) gained 0.69%, the Hang Seng (HK50) edged down 0.11%, and the ASX 200 (AU200) posted a strong gain of 1.10%.

The Hong Kong market saw moderate gains on Wednesday morning, supported by expectations of Chinese stimulus measures, including urban renewal plans and property market stabilization in the new 2026–2030 five-year plan. Gains were capped by local factors such as a narrowing current account surplus and inflation holding at 1.2%. Financials and developers outperformed, while consumer stocks traded cautiously ahead of the shortened session.

The “kiwi” strengthened to around $0.585, marking its third consecutive day of gains and reaching its highest level since late September. The rally is driven by expectations of a potential RBNZ rate hike in 2026, Q3 economic recovery data, and a weakening US dollar. RBNZ Governor Anna Breman signaled that rates will likely remain on hold for some time. Overall, the NZD is on track for an annual gain of over 4% in 2025.

S&P 500 (US500) 6,909.79 +31.30 (+0.46%)

Dow Jones (US30) 48,442.41 +79.73 (+0.16%)

DAX (DE40) 24,340.06 +56.09 (+0.23%)

FTSE 100 (UK100) 9,889.22 +23.25 (+0.24%)

USD Index 97.95 −0.34% (−0.34%)

News feed for: 2025.12.24

  • Japan BoJ Monetary Policy Meeting Minutes at 01:50 (GMT+2); – JPY (MED)
  • US Initial Jobless Claims (w/w) at 15:30 (GMT+2); – USD (MED)
  • US Crude Oil Inventories (w/w) at 17:30 (GMT+2); – WTI (HIGH)
  • US Natural Gas Storage (w/w) at 19:00 (GMT+2). – XNG (HIGH)

By JustMarkets

 

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

2025 Market Review: Tantrums, Tech, Conflict & Cuts

By ForexTime 

As another busy year in the financial markets comes to an end our Senior Market Analyst Lukman Otunuga talks a look at the major stories from 2025.

This review covers the major themes, key movers, the year’s biggest shocks, our forecast scorecard, and the lessons worth taking into 2026.

All performance figures referenced are year-to-date as of 16th December 2025 unless otherwise stated.

Key takeaways

  1. USD’s grip slips on FX throne, down 9% year-to-date
  2. Oil ends 2025 with double-digit losses
  3. EU50 catches up to pack, hitting fresh all-time highs
  4. Read on as we reveal the FXTM Awards: Best performing assets of 2025!

What happened to markets in 2025?

2025 was defined by uncertainty as investors navigated Trump’s trade war, monetary policy shifts, geopolitical risk and the AI bet.

These themes sparked monstrous levels of volatility, sending tremors across the board. World stocks were placed on a rollercoaster ride in the face of Trump’s trade war before surging due to the AI bet. Nvidia, feeding off this momentum, became the first company ever to reach a market cap of $5 trillion.

The Cboe volatility index saw its biggest ever one-day spike amid the tariff chaos. A shaky dollar offered relief to G10 currencies, while oil prices were mostly pressured by oversupply fears and signs of tepid demand. In the crypto space, bitcoin bulls failed to deliver due to massive ETF outflows and growing sensitivity to macroeconomic forces. Precious metals welcomed the chaos, with one even ending the year with triple-digit gains!

Amid all these developments, there were some standout market shockers:

“Liberation Day” tariffs in April

On 2nd April 2025, the Trump administration announced a universal 10% tariff on all imported goods that would take effect on 15th April. This sent shockwaves across world markets as global growth fears sparked a risk-off stampede. The S&P500 lost more than 10% in the two days after the announcement.

Bitcoin flash crash during October

Bitcoin experienced a sudden flash crash on 10th October, wiping $12,000 from its value in a matter of minutes – resulting in an unprecedented $19 billion worth of liquidations. This brutal selloff was sparked by Trump’s threat to impose an additional 100% tariff on Chinese goods.

Longest US government shutdown in history

The US government shutdown on 1st October and didn’t reopen until 13th November.

Such an event created widespread disruptions, raised fears around the US economic outlook and threw everyone into the dark. Markets are still suffering the consequences with the October US jobs report never to be released.

How did our 2025 predictions play out?

Despite all the chaos and surprises, some of our market predictions came true.

12 months ago, we picked 3 assets that could serve up major opportunities for traders and investors this year.

Here’s how they performed:

1) Dollar loosens grip on FX throne

What we discussed in the 2025 Outlook

Our dollar outlook was firmly bullish due to Trump’s “America First” policies resulting in slower Fed rate cuts, US exceptionalism and safe-haven demand.

How things played out

The USDInd did not see its best year in a decade. Instead prices weakened as Trump’s tariffs sparked concerns over the US economic outlook.

Bloomberg data on G10 currencies performance year to date

After peaking in January, it was a slippery decline amid growing bets around the Fed cutting interest rates in the face of slowing growth.

Concerns over the Fed’s independence, political uncertainty and risk appetite favouring other currencies fuelled the USD’s decline. The longest US government shutdown in history rubbed salt into the wound.

At the start of the year, markets were only expecting the Fed to cut rates twice in 2025. We saw three rate cuts instead with further cuts expected in 2026.

Technical review

In our 2025 Outlook, we suggested “should prices slip under 105.50, bears may target the 50-week SMA at 103.90, 102.70 and 100.00.”

All bearish price targets were reached.

USD Index 2025 YTD chart

USD Index down 9% YTD

2) Oil lingers near 2025 lows

What we discussed in the 2025 Outlook

Our outlook on oil was heavily bearish thanks to Trump’s tariffs, global oversupply, OPEC+ output hikes, rising US shale production and still-elevated Fed rates.

How things played out

Oil prices ended 2025 roughly 15% lower but nowhere near the levels seen during the Covid-19 pandemic.

Prices were hit by demand-side fears and oversupply concerns as OPEC kept pumping production to reclaim lost market share.

In 2025, the cartel implemented a series of monthly production increases starting in April. These were part of a plan to gradually reverse previous voluntary output cuts totaling 2.2 million barrels per day (bpd). Rising non-OPEC supply and higher inventories contributed to the downside.

If not for mounting geopolitical risk in the Middle East and sanctions against Russia, oil prices may have extended loss – trading closer to Covid-19 levels.

Technical review

We suggested that “a solid weekly close below $70 may open a path toward $62, $50 and $37.”

Prices hit our first bearish price targets before bottoming out around $63.

Brent oil price chart 2025 YTD

Brent Oil down 16% YTD

3) EU plays catchup to hit all-time highs

What we discussed in the 2025 Outlook

We were firmly bullish on the EU50 due to expectations around the ECB cutting rates and easing geopolitical risk in the region.

How things played out

FXTM’s EU50 surged in 2025, gaining over 15% year-to-date.

These gains were powered by lower rates in Europe, robust earnings and a historic change to German government spending which saw hundreds of billions of euros on defense/infrastructure spending.

With more government spending for Europe’s largest economy, this boosted sentiment over the Eurozone’s economic outlook – supporting equities in the region.

Technical review

We stated that “a solid weekly close above 5110 may open a path toward 5250 and the all-time high at 5522. Beyond this point, prices may venture toward 5632.”

The EU50 peaked at 5831 in 2025, fulfilling all our bullish price targets.

EURO STOXX index price chart 2025 YTD

EU50 up 17% YTD

FXTM Awards: Best performing assets of 2025

Looking across the FXTM universe, these were the best performing assets we offered in 2025!

  • Crypto: Bitcoin Cash ↑ 25% YTD
  • Stock Index: SPN35 ↑ 46% YTD
  • Metal: XAGUSD (Silver) ↑ 120% YTD
  • G10 currency: SEK (Swedish Krona) ↑ 20% YTD

Disclaimer: Data correct as of 16th December 2025.

What lessons can traders learn from 2025?

Volatility offers opportunity regardless of market direction was one of the biggest lessons of 2025.

We went into the year with a Trump-centric focus, bracing for his trade war to throw global markets into chaos.

Trump certainly didn’t disappoint with the knock-on effects impacting commodities, currencies, indices and cryptos.

But markets proved resilient with equities across the globe hitting records and on track for double-digit gains in 2025.

Metals also found their champion in silver, which gained 100% year-to-date amid supply constraints and rate cut bets. Interestingly bitcoin suffered from heavy institutional selling and could be on track for its first negative year since 2022.

We saw the AI bet and expectations around lower interest rates support global stocks this year, but the question is for how long?

What’s the outlook for 2026?

With concerns still lingering around an AI bubble, tariffs starting to bite and geopolitical risk present, things could spice up in 2026.

And this means one thing: more volatility.

Get the inside story on what to expect from markets next year with our 2026 Outlook, which is set to be published early January 2026.


 

Forex-Time-LogoArticle by ForexTime

 

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Precious metals are hitting new all-time highs. The People’s Bank of China kept its lending rates unchanged

By JustMarkets 

On Friday, the Dow Jones (US30) rose by 0.38% (for the week -0.95%), while the S&P 500 (US500) gained 0.88% (for the week -0.37%). The Nasdaq Technology Index (US100) closed 1.31% higher (for the week -0.03%). The US stock markets ended Friday with solid gains amid a triple-witching derivatives expiration. AI-related stocks showed signs of recovery, with Oracle shares jumping over 7% following reports that TikTok agreed to sell its US business to a new joint venture involving Oracle and Silver Lake. Micron Technology gained 7%, building on a 10% gain from the previous day, while Nvidia rose more than 3% amid reports that the Trump administration is considering allowing the company to sell advanced AI chips to China. Meanwhile, Nike shares plummeted 11% following a report of declining revenue in China and the negative impact of higher tariffs on the company’s gross margins.

European equity markets mostly rose. The German DAX (DE40) increased by 0.37% (weekly -0.04)%, the French CAC 40 (FR40) finished up 0.01% (weekly +0.80%), the Spanish IBEX 35 (ES35) rose by 0.22% (weekly +1.40%), and the British FTSE 100 (UK100) closed 0.61% higher (weekly +2.57%). The ECB’s decision to keep interest rates unchanged starting from June 2025 confirms the bank’s current neutral stance, meaning the central bank sees no need to ease or tighten monetary policy without a significant shift in inflation or economic growth. ECB staff expectations point to moderate growth and inflation in the medium term.

Precious metal prices climbed, with silver showing particularly strong momentum. Gold continues to receive structural support from central banks. The People’s Bank of China (PBoC) increased its gold reserves by 30,000 ounces in November to a total of 74.1 million troy ounces, marking the thirteenth consecutive month of accumulation. Additionally, the World Gold Council reported that central banks purchased 220 tons of gold in the third quarter, a 28% increase compared to the second quarter.

Silver is further supported by concerns over a physical metal deficit in China. As of November 21, silver inventories in warehouses linked to the Shanghai Futures Exchange fell to 519,000 kg, the lowest level in the last 10 years. Although the market faced pressure from profit-taking and ETF outflows after reaching record highs in mid-October, demand from funds has begun to recover, with long positions in silver ETFs reaching a nearly 3.5-year high on Tuesday.

Asian markets traded with mixed results last week. The Japanese Nikkei 225 (JP225) rose by 0.38%, the Chinese FTSE China A50 (CHA50) fell by 0.40%, the Hong Kong Hang Seng (HK50) dropped by 0.35%, and the Australian ASX 200 (AU200) showed a positive five-day result of 1.18%.

As expected, the People’s Bank of China maintained its key lending rates at historic lows, leaving the one-year LPR at 3.0% and the five-year rate at 3.5%. This decision, representing the seventh consecutive period of no change, confirms the regulator’s stance that there is no urgent need for additional stimulus to reach annual GDP growth targets, despite November statistics showing a slowdown in retail sales and industrial production growth.

The New Zealand dollar is showing a steady recovery, rising toward 0.577 USD and nearly fully reversing its drop to two-week lows amid a revision of market expectations regarding Reserve Bank policy. The currency was supported by third-quarter GDP data confirming the national economy’s exit from a long period of stagnation, which significantly reduced the likelihood of monetary easing. Since the existing economic downturn prevents inflation from rising in the near term, market expectations for rate hikes have become more modest, with the probability of such a move by July falling from 50% to 40%.

S&P 500 (US500) 6,834.50 +59.74 (+0.88%)

Dow Jones (US30) 48,134.89 +183.04 (+0.38%)

DAX (DE40) 24,288.40 +88.90 (+0.37%)

FTSE 100 (UK100) 9,897.42 +59.65 (+0.61%)

USD Index 98.72 +0.09% (+0.30%)

News feed for: 2025.12.22

  • China Loan Prime Rate at 03:15 (GMT+2); – CHA50, HK50 (MED)
  • UK GDP (q/q) at 09:00 (GMT+2); – GBP (MED)
  • Hong Kong Inflation Rate (m/m) at 10:30 (GMT+2). – HK50 (LOW)

By JustMarkets

 

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

ECB, Riksbank, and Norges Bank kept rates unchanged. BoE proceeded with a rate cut.

By JustMarkets 

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)

By JustMarkets

 

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

The US tech sector is under sell-off. Platinum hits a 17-year high

By JustMarkets 

At the close of Wednesday, the Dow Jones Index (US30) fell by 0.47%. The S&P 500 Index (US500) declined by 1.16%, and the tech-heavy Nasdaq Index (US100) closed lower by 1.81%. The US stock markets finished significantly down on Wednesday, extending their losing streak to a fourth consecutive session. The main pressure came from the technology sector amid persistent concerns over high valuations and massive investments in AI-related projects. Oracle shares tumbled 5.4% following reports that its key data center partner, Blue Owl, declined to support a $10 billion data center construction project. Nvidia shares fell by 3.8%, Broadcom by 4.5%, and AMD by 5.3%. Against this backdrop, the energy sector outperformed the market, receiving support from rising oil prices following President Trump’s order for a “full and comprehensive” blockade of oil tankers associated with Venezuela.

European stock markets traded without a uniform dynamic yesterday. Germany’s DAX (DE40) fell by 0.48%, France’s CAC 40 (FR40) closed down 0.25%, Spain’s IBEX 35 (ES35) rose by 0.10%, and the UK’s FTSE 100 (UK100) closed up 0.92%. The European Central Bank, the Swedish Riksbank, and the Norges Bank are expected to keep interest rates unchanged and will likely maintain current policy levels through 2026. Even with the Bank of England’s expected rate cut on Thursday, markets are still pricing in only one additional cut next year, despite softer inflation data.

WTI crude oil prices rose by more than 2% on Wednesday, exceeding $56 per barrel, rebounding from a nearly five-year low reached in the previous session. The market was supported by US President Donald Trump’s decision to impose a “full and comprehensive” blockade on sanctioned oil tankers linked to Venezuela, following the recent detention of blacklisted vessels and an increased US military presence in the region. An additional growth factor was reports of a new round of US sanctions being prepared against Russia’s energy sector to increase pressure on Moscow in the context of negotiations over Ukraine.

Platinum (XPT) rose above $1,930 per ounce, reaching its highest level since 2008, amid growing economic and political uncertainty in the US, which bolstered demand for alternative assets for diversification. Growth was also driven by supply risks, as production in South Africa, the world’s largest platinum producer, came in weaker than expected. The World Platinum Investment Council (WPIC) prognoses a market deficit of 69,000 ounces in 2025, the third consecutive year of deficit, before a move toward a balanced market with a small surplus is expected in 2026.

On Wednesday, silver appreciated by more than 4%, exceeding $66 per ounce and setting a new all-time high. The market received an extra boost following statements by Fed Governor Christopher Waller, who allowed for the possibility of a 1% point rate cut in the US, citing nearly zero job growth and the need for moderate policy easing to support the labor market. In a broader perspective, silver’s price increase of nearly 130% since the start of the year is supported by structural factors: shrinking inventories and steady demand from industrial and retail investors, primarily in the solar energy, electric vehicle, and data center sectors.

Asian markets were mostly up on Wednesday. Japan’s Nikkei 225 (JP225) rose by 0.26%, China’s FTSE China A50 (CHA50) gained 0.40%, Hong Kong’s Hang Seng (HK50) climbed 0.92%, while Australia’s ASX 200 (AU200) showed a negative result of 0.16%.

The Bank of Indonesia (BI), at its December 2025 monetary policy meeting, kept its benchmark interest rate unchanged at 4.75% for the third consecutive time. This decision aligns with expectations and is aimed at supporting the Rupiah despite signs of slowing economic growth. The move follows a cumulative reduction of 150 basis points since September of last year, bringing the rate to its lowest level since October 2022. This stance reflects the central bank’s view that inflation in 2025–2026 will remain within the target range of 2.5% ± 1% due to a stable Rupiah and ongoing measures to sustain economic growth.

S&P 500 (US500) 6,721.43 −78.83 (−1.16%)

Dow Jones (US30 47,885.97 −228.29 (−0.47%)

DAX (DE40) 23,960.59 −116.28 (−0.48%)

FTSE 100 (UK100) 9,774.32 +89.53 (+0.92%)

USD Index 98.41 +0.26% (+0.26%)

News feed for: 2025.12.18

  • Sweden Riksbank Rate Decision at 10:30 (GMT+2); – SEK (MED)
  • Norway Norges Bank Rate Decision at 11:00 (GMT+2); – NOK (MED)
  • UK BoE Interest Rate Decision at 14:00 (GMT+2); – GBP, UK100 (HIGH)
  • UK BoE Monetary Policy Statement at 14:00 (GMT+2); – GBP, UK100 (HIGH)
  • Eurozone ECB Interest Rate Decision at 15:15 (GMT+2); – EUR, DE40 (HIGH)
  • Eurozone ECB Monetary Policy Statement at 15:15 (GMT+2); – EUR, DE40 (HIGH)
  • US Consumer Price Index (m/m) at 15:30 (GMT+2); – USD, XAU, US Indices (HIGH)
  • US Initial Jobless Claims (w/w) at 15:30 (GMT+2); – USD (MED)
  • Eurozone ECB Press Conference at 15:45 (GMT+2); – EUR, DE40 (MED)
  • US Natural Gas Storage (w/w) at 17:30 (GMT+2); – (HIGH)
  • Mexico Banxico Interest Rate Decision at 21:00 (GMT+2); – MXN (HIGH)
  • New Zealand Trade Balance (m/m) at 23:45 (GMT+2). – NZD (MED)

By JustMarkets

 

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.