(Dec 29): Global stocks held at record highs on Monday, while silver rallied to a new peak before turning sharply lower as trading winds down heading into year end.
The MSCI All Country World Index — one of the broadest measures of the equity market — was up 0.1% on Monday after climbing 1.4% last week to a new all-time high as a much-expected year-end rally took hold. Silver retreated after smashing through US$80 ($102.78) an ounce for the first time, turning volatile following a historic rally powered by a structural imbalance in supply and demand. Gold also fell.
A gauge of Asian shares advanced 0.5%, with tech leading gains. US stock futures were steady after the S&P 500 finished near an all-time high last Friday.
Precious metals have emerged as a hot corner of financial markets in recent months, boosted by elevated central-bank purchases, inflows to exchange-traded funds and three successive rate cuts by the US Federal Reserve. Lower borrowing costs are a tailwind for the commodities, which don’t pay interest, and traders are betting on more rate cuts in 2026.
“We are witnessing a generational bubble playing out in silver,” Tony Sycamore, a market analyst at IG Australia, wrote in a note on Sunday. “Relentless industrial demand from solar panels, electric vehicles, artificial intelligence (AI) data centres and electronics, pushing against depleting inventories, has driven physical premiums to extremes.”
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In the last week, frictions in Venezuela — where the US has blockaded oil tankers — and strikes by Washington on Islamic State in Nigeria have added to the haven appeal of precious metals. With silver inventories near their lowest on record, there’s a risk of supply shortages that could impact multiple sectors.
“This is not good. Silver is needed in many industrial processes,” Elon Musk said on X on Saturday in response to a series of tweets on the supply shortage.
The gauge of global stocks has risen nearly 22% in 2025, headed for a third straight annual gain and the biggest since 2019.
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Trends in AI, the key driver of this year’s rally, as well as the path of the Fed’s interest rates are seen by investors as two of the most crucial factors that will determine how equities perform in 2026.
“The focus this week will be on the release of the Federal Open Market Committee minutes” from the Fed’s December meeting, according to Sycamore. “Markets will scour the minutes for deeper insights into the committee debates on the balance of risks and the timing of future easing.”
In Asia, Chinese markets are in focus after the nation pledged to broaden its fiscal spending base in 2026, signalling sustained government support to drive growth in a challenging external environment.
Data over the weekend showed China’s industrial profits fell for a second month in November, adding to signs that weakening domestic demand and persistent deflation are weighing on corporate earnings.
Geopolitics is also drawing attention at the start of a new week. Donald Trump said he made “a lot of progress” in talks with Ukrainian President Volodymyr Zelenskiy as the US president pushes for a peace deal to end Russia’s invasion.
Elsewhere, oil was higher on prospects for improved Chinese demand while bitcoin also advanced. The dollar edged lower.
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Stocks
- S&P 500 futures were little changed as of 10.35am Tokyo time on Monday
- Japan’s Topix was little changed
- Australia’s S&P/ASX 200 fell 0.2%
- Hong Kong’s Hang Seng rose 0.8%
- The Shanghai Composite rose 0.1%
- Euro Stoxx 50 futures rose 0.3%
Currencies
- The Bloomberg Dollar Spot Index was little changed
- The euro was little changed at US$1.1783
- The Japanese yen rose 0.2% to 156.25 per dollar
- The offshore yuan was little changed at 7.0066 per dollar
Cryptocurrencies
- Bitcoin rose 0.5% to US$87,991.31
- Ether rose 0.9% to US$2,963.19
Bonds
- The yield on 10-year Treasuries was little changed at 4.13%
- Australia’s 10-year yield was little changed at 4.74%
Commodities
- West Texas Intermediate crude rose 0.8% to US$57.18 a barrel
- Spot gold fell 0.6% to US$4,503.85 an ounce
Uploaded by Tham Yek Lee
