Nikkei Eases, Futures Mixed Globally
Asian and U.S. stock market indicators showed a mixed situation on the first trading day of the week, with the majority of the Asian markets showing a double-digit gain near the end of 2025, as investors looked past Trump’s threats about imposing tariffs and focused more on AI opportunities. The US market retreated modestly, and the European equities made progress.
While the US dollar remained close to a nearly three-month low despite all the expectations of the Federal Reserve lowering the interest rate next year, stocks across the Asian markets surged to their highest levels in six weeks on Monday, 29th December. The discussions on lowering the interest rates have fueled a strong rally in precious metals.
The Surge in the Silver Rate and Fall of Other Precious Metals
Despite the low performance of the US Stock market, the price of silver climbed past $80 per ounce for the first time during the volatile trading. However, for platinum and palladium, there was a sharp drop after reaching all-time highs.
Gold, too, has shown a dip of 0.45 percent but has repeatedly broken the record levels this year, after its highest annual gain in 1979, when the price increased by over 72 percent.
The Double-Digit Gain in the Asian Market
Though the geopolitical concerns returned after Donald Trump visited Ukraine’s Volodymyr Zelensky, without signing any peace agreement, the Asian market in general has been performing well.
Japan’s Nikkei 225 index slipped 0.44% in early trade, but is set for around a 27% rise this year. This reduced some recent gains after holiday-paused trading sessions resumed. The slight dip in Japan’s market has worried investors, even as hopes for a potential US Federal Reserve rate cut disrupted the regional sentiments.
Despite the day’s slight pullback, the overall market performance remains positive for Nikkei in 2025, with the index substantially higher year-to-date. This underscores the strong interest of investors in Japanese equities amid the positive outlook for growth and corporate earnings.
MSCI’s broadest index of Asia-Pacific shares rose by 0.33%, reflecting a strong start to the final week of the year. South Korea’s Kospi increased by 2.20%, a nearly two-month high, taking its yearly gain to 75%, one of the best performances since 1999. Taiwan Weighted Index climbed 1%, reaching a record high, and is all set to make a 25% annual increase.
Wall Street Moves Cautiously After Seeing a Dip in the Market Performance
Ahead of the US open, with contracts tied to the S&P 500 and Nasdaq showing slight dips with the value falling 0.22%, experts state that the future of Wall Street is pointed lower. The reduced market activity near the year-end points to the market accepting the thin holiday trading volumes while waiting for major macroeconomic data that could influence the policy expectations.
The investors are also closely watching for the release of the Fed’s December meeting report, which could offer a better perspective on the central bank’s near-term interest rate strategy.
In terms of currency, the US dollar index gained a marginal 0.01% to 98.03. The potential Fed rate cut in 2026 has put a lot of pressure on the dollar. Tracking against six major currencies, the dollar index has shown a 9.5% decline this year, the sharpest drop since 2017.
European Markets Rise as Trading Resumes Post-Holiday
In contrast to the Asian and US markets, the European equities increased on Monday after the market resumed post-holidays. The STOXX 600 benchmark reached new highs, with the gains in basic resources and technology stocks leading the market. While the precious metals showed a positive growth, sectors like aerospace and defense lagged.
Global Market Outlook Towards the Year-End
Overall, the mixed signals in the global market are urging a cautious yet constructive landscape for the global equities heading towards the final trading days of 2025. The central-bank policy outlooks, inflation data, and geopolitical developments are more likely to drive the market in 2026.
