U.S. Stock Index Futures Steady as Markets Await Fed Policy Clues in Holiday-Thinned Trade 
Forex Markets Hold Steady as Traders Await Fed Minutes Amid Thin Year-End Volumes 
Citi Forecasts a Volatile but Ongoing Bull Market for S&P 500 in 2026 
Oil Prices Stabilize at Start of 2026 as OPEC+ Policy and Geopolitical Risks Shape Market Outlook 
Japanese Business Leaders Urge Government Action as Weak Yen Strains Economy 
China Manufacturing PMI Rebounds in December, Offering Boost to Economic Growth Outlook 
U.S. Stock Futures Slip as Year-End Trading Turns Cautious 
U.S. Dollar Slides Toward Biggest Annual Loss Since 2017 as 2026 Risks Loom 
South Korea Factory Output Misses Forecasts in November Amid Ongoing Economic Uncertainty 
Wall Street Ends Mixed as Tech and Financial Stocks Weigh on Markets Amid Thin Holiday Trading 
Asian Currencies Trade Flat as Dollar Weakens in Thin New Year Trading 
U.S. Dollar Steadies Ahead of Fed Minutes as Markets Eye Policy Divisions 
South Korea Factory Activity Returns to Growth in December on Export Rebound 
China Imposes 55% Tariff on Beef Imports Above Quota to Protect Domestic Industry 
Asian Markets Slip as Precious Metals Cool, Geopolitical Tensions Weigh on Sentiment 
Gold Prices Rebound in Europe as Geopolitical Tensions and Fed Outlook Support Bullion 
Global equity markets surged to new records on Thursday, driven by expectations of imminent U.S. Federal Reserve rate cuts, even as inflation data came in hotter than forecast. MSCI’s world stocks index climbed 0.72% to 971.72, its second straight record high, while Wall Street’s Dow Jones rose 1.36% to 46,108.00, the S&P 500 gained 0.85% to 6,587.47, and the Nasdaq advanced 0.72% to 22,043.08.
The latest U.S. Consumer Price Index rose 0.4% in August, the largest jump in seven months, fueled by higher housing and food costs. However, weekly jobless claims surged by 27,000 to 263,000, their highest since October 2021, signaling labor market weakness. This shift reinforced market conviction that the Fed will begin a rate-cutting cycle at its meeting next week. Traders fully priced in a quarter-point cut, with odds of additional cuts in October and December climbing to 86% and 79% respectively, according to CME’s FedWatch tool.
U.S. Treasury yields fell, with the 10-year note briefly dipping below 4%, while the dollar weakened against the euro, yen, sterling, and other major currencies. The euro rose 0.38% to $1.1738, and sterling gained 0.37% to $1.3579.
In Europe, the STOXX 600 closed up 0.6% after the ECB left rates unchanged at 2% and trimmed inflation forecasts.
Commodity markets turned lower, with U.S. crude sliding 2.04% to $62.37 a barrel and Brent falling 1.66% to $66.37 on demand concerns. Spot gold edged down 0.13% to $3,635.83 an ounce after recent record highs.
Markets remain locked in a tug of war between inflation pressures and weakening labor conditions, but investor sentiment is firmly tilted toward monetary easing, keeping equities buoyant despite global uncertainties.
