Global stock markets pause their rally, gold and silver hit new highs, yen rebounds strongly, crude oil steadies after consecutive gains, cryptocurrencies face pressure.

Robust corporate earnings and expectations of monetary easing have jointly propelled global stock markets to rise for four consecutive days, setting new records. The MSCI All Country World Index climbed, following a fresh closing record in the previous trading session.Market expectations that the US economy will achieve a “soft landing”, as well as the outlook for Fed rate cuts in 2026, have eased valuation pressures and boosted risk appetite. Meanwhile, gold and silver prices hit new highs.

On December 23, US stock index futures edged back after overnight US gains, European stock indices declined, and most Asian stock indices rose. US Treasury yields retreated, the dollar weakened, and the yen rose. Gold, silver, and copper all climbed, oil stabilized after four consecutive increases, and cryptocurrencies came under pressure.

The Fed’s policy trajectory and the outlook for capital expenditure in artificial intelligence remain the two core factors driving current market sentiment. Federal Reserve Governor Steven Millan stated that unless the Fed continues to cut rates next year, it risks the economy falling into recession.

Ken Wong, Asian equity portfolio specialist at BEA Investment in Hong Kong, commented:

“Although we have seen some pullbacks and certain weakness in the AI sector, we believe 2026 will still be quite strong, as overall, companies continue to allocate significant capital expenditure into artificial intelligence.”

Key market movement summary:

US stock index futures all declined: Dow futures fell nearly 0.1%, S&P 500 futures down 0.14%, Nasdaq futures down 0.15%.Euro Stoxx 50 index opened flat, German DAX index opened flat, UK FTSE 100 dropped 0.15%, French CAC 40 decreased by 0.1%.Nikkei 225 closed up 0.02% at 50,412.87, TOPIX closed up 0.5% at 3,423.25, South Korea’s Kospi closed up 0.3% at 4,117.32.Dollar index fell below 98, a new 5-day low, intraday down 0.3%; Japanese yen rose 0.6% against the dollar to 156.09; offshore yuan broke above 7.02 against the dollar, a new high since October 2024, up over 110 points intraday; GBP/USD up 0.3% to 1.3502, highest since October 2.US 10-year Treasury yield fell 1 basis point to 4.15%, Japanese 10-year government bond yield down 5 bps to 2.03%.Spot gold rose 0.85% to $4,481.5/oz, spot silver up almost 0.4% to $69.34/oz, London copper futures up 0.14% to $11,942/ton, Brent crude fell over 0.2% to $61.44/barrel.Bitcoin fell 1% to $87,363.32, Ethereum fell 0.9% to $2,959.42.

US stock index futures mildly retreated before market open after overnight US market gains. On Monday, investor optimism propelled the S&P 500 to recover all its losses for December, and it is expected to achieve eight consecutive months of gains, marking the longest monthly winning streak since 2018. Tesla and Nvidia have led this round of large-cap stock rallies.

After another strong year for equities, the current market focus is on whether investors can maintain this optimism into 2026. Fund managers continue to increase stock allocations while keeping cash holdings at historic lows. Although tech stock valuations are elevated, expectations for further stock market gains still dominate market sentiment. Meanwhile, the Fed’s policy path is under intense scrutiny, with broad anticipation of two rate cuts next year.

Novo Nordisk European shares rose 7%, mainly boosted by the company’s weight-loss drug gaining US FDA approval. According to Wallstreetcn, on Monday, December 22, the US Food and Drug Administration (FDA) approved Danish pharmaceutical giant Novo Nordisk’s first oral GLP-1 weight-loss drug.

This approval also temporarily puts Novo Nordisk ahead of main rival Eli Lilly in the fierce competition. According to Bloomberg, Eli Lilly’s own oral weight-loss drug is expected to be approved next March. This means Novo Nordisk has a precious window of several months to consolidate its first-mover advantage in the oral drug market—oral formulations are becoming the next core battleground for the two giants, after injectables.

The Japanese yen strengthened for a second consecutive day, with the USD/JPY breaking through the 156 mark. On Monday, Japan’s Finance Minister Kaori Katayama explicitly stated that, in response to exchange rate fluctuations departing from economic fundamentals, Japan has the “free hand” discretion to take bold action. Previously, even as the Bank of Japan raised borrowing costs to the highest in 30 years, the yen weakened, not only against the dollar but also hitting historic lows against the euro.

According to Bloomberg, Katayama stated in a Monday interview that recent market fluctuations are clearly speculative, not reflective of fundamentals. She emphasized, based on the joint statement from US and Japanese finance ministers, that Japan will take “bold action” against such trends.

Spot gold sets new all-time high again. Driven by expectations of further Fed rate cuts in 2026 and geopolitical tensions near Venezuela, spot gold prices today hit a record high of $4,486 per ounce, the 50th record-high this year.

Spot silver also hit a new high, briefly breaking $70/oz.

Oil stabilized after four days of gains. According to Wallstreetcn, the US intercepted Venezuelan oil tankers three times in two weeks; Israel is brewing a new round of action against Iran; Ukrainian drones struck Russian Black Sea ports—a series of geopolitical conflict risks have reignited market worries about oil supply, outweighing concerns about weak fundamentals, and propelled oil prices sharply higher on Monday.

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