(Dec 12): Global stock gauges traded near record highs after a week in which affirmation that the Federal Reserve’s (Fed) interest-rate easing cycle remains intact helped clear the way for a year-end rally.
Europe’s Stoxx 600 rose 0.5% to hit a new peak. An Asian equity measure advanced to less than 2% from its all-time high. S&P 500 futures were steady after the index posted a new closing milestone in the previous session, when blue-chip and small-cap gauges also reached record territory.
Tech gauges lagged, signalling a broadening out of the rally that has put a global equity index on track for its best year since 2019. Shares of Broadcom Inc, which is vying with Nvidia Corp for artificial-intelligence computing revenue, fell in late trading after its sales outlook failed to meet lofty expectations. Nasdaq 100 futures slid 0.2%.
“Everyone is convincing themselves that there will be a Christmas rally, so it looks like there will be one, and to be honest, there’s no negative catalyst visible until the end of the year,” said Karen Georges, a fund manager at Ecofi Investissements in Paris. “Investors are keen to buy this year’s laggards, it’s a good time to diversify your portfolio at the moment.”
Delivering a third consecutive rate reduction on Wednesday, Fed Chair Jerome Powell voiced optimism that the US economy will strengthen as the inflationary impact from tariffs fades. While officials kept their outlook for just one cut in 2026, traders have stuck to bets for two such moves.
Bloomberg’s index of the dollar traded near a two-month low on Friday and was on track for a third weekly loss. Treasury 10-year yields were steady after a small gain on Thursday.
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In commodities, copper climbed to a fresh record as most other industrial metals rose after the Fed move. Gold rose for a fourth day while silver extended its all-time high. Oil rallied from its lowest close in almost two months.
Some of the main moves in markets:
Stocks
See also: Asian futures rise as stocks reach record highs
- The Stoxx Europe 600 rose 0.5% as of 8.27am London time
- S&P 500 futures were little changed
- Nasdaq 100 futures fell 0.2%
- Futures on the Dow Jones Industrial Average rose 0.3%
- The MSCI Asia Pacific Index rose 1.3%
- The MSCI Emerging Markets Index rose 0.9%
Currencies
- The Bloomberg Dollar Spot Index was little changed
- The euro was unchanged at US$1.1738
- The Japanese yen was little changed at 155.74 per dollar
- The offshore yuan was little changed at 7.0525 per dollar
- The British pound was little changed at US$1.3383
Cryptocurrencies
- Bitcoin fell 0.7% to US$92,231.04
- Ether fell 0.3% to US$3,241.46
Bonds
- The yield on 10-year Treasuries was little changed at 4.16%
- Germany’s 10-year yield advanced one basis point to 2.85%
- Britain’s 10-year yield declined one basis point to 4.47%
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Commodities
- Brent crude rose 0.5% to US$61.59 a barrel
- Spot gold rose 0.3% to US$4,294.75 an ounce
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