Market Summary
Markets ended 2025 mixed: S&P 500 and Nasdaq cooled after Fed minutes tempered rate‑cut hopes while the Dow showed modest weakness. Volatility spiked in commodities — silver and gold routed traders — and AI names remained the largest market driver. Investors brace for 2026 catalysts: central‑bank moves, earnings and geopolitical flashpoints.
Beijing and Amsterdam are clashing over the fate of Nexperia, a Chinese-owned chipmaker, as China accuses the Netherlands of destabilising global semiconductor supply chains. The dispute highlights rising tech-security tensions between Europe and China.
Figure of the Day
8% – Silver futures plunged about 8% after CME Group raised margin requirements, sparking sharp metal-market volatility.
Official surveys and market indicators show Chinese manufacturing rebounded in December after months of contraction, driven by holiday stockpiling and order improvements. The data suggests tentative recovery but leaves questions about sustained demand.
Xi Jinping is claiming China achieved its 2025 growth goals while Beijing signals more stimulus next year. Officials are positioning proactive macro policy to support a fragile recovery.
Bullish
Singapore GDP rises 4.8% in 2025 — economy outperforms peers
Singapore reported 4.8% GDP growth in 2025, signalling resilience in trade and services and bolstering regional investor confidence heading into 2026.
More on bloomberg.com
Nvidia is scrambling to boost H200 supply as demand surges, prompting talks with TSMC and large orders from Chinese firms. The moves underscore the global race for AI chips and supply-chain strain.
Nvidia’s large strategic bets on alternative chip vendors and Groq assets are reshaping AI infrastructure debates and prompting hefty bids for cloud inference platforms. Markets are parsing whether consolidation will ease or heighten supply risks.
Bearish
Jet It files for Chapter 7 — $36.2M liabilities, flights canceled
Fractional operator Jet It sought Chapter 7 protection, listing $36.2M in liabilities and $1.1M in assets after years of shutdown and mounting debts.
More on privatejetcardcomparisons.com
Meta completed a high-profile acquisition of Manus, an AI agent startup with Chinese roots, and has publicly sought to address ownership concerns. The deal caps a wave of big tech M&A aimed at shoring up AI capabilities.
SoftBank has moved aggressively to increase its exposure to OpenAI, completing tranches that lift its holding to roughly 11% and finalising multi-billion-dollar commitments. The investments underscore continued private capital backing for AI scale-up.
Regulatory Impact
EU to launch carbon border tax; Beijing mandates 50% domestic chip equipment and trims VAT on home resales; China imposes 55% beef tariffs; US freezes Minnesota childcare payments amid fraud probe.
Minutes from the Fed’s December meeting reveal deep divisions over recent rate decisions and the path of future cuts, complicating the outlook for markets sensitive to policy guidance. Officials remain split on timing and pace of easing.
US equities finished a strong 2025 with broad gains, and Wall Street analysts are bullish on 2026, though optimism clashes with concerns about concentration in AI names. Sentiment is upbeat but fragile heading into the new year.
Quote
We are seeing more and more clearly that Russia’s aggression was and is part of a plan targeted against the whole of Europe.
— Friedrich Merz
Silver markets swung violently after the CME raised margin requirements, triggering sharp intraday drops and renewed volatility in precious metals. Traders and analysts warn the white metal remains susceptible to abrupt moves.
Beijing is escalating trade measures on agricultural imports, imposing steep duties on beef that will hit US exporters and reshape trade ties. The tariffs are part of broader trade tensions and protection initiatives.
A power fault in the Channel Tunnel triggered major disruptions for cross‑Channel rail services, with Eurostar warning passengers of ongoing delays. Operators are working overnight to restore full service amid holiday travel demand.
Major energy players secured supply and development deals as firms jockeyed to capture LNG and offshore gas opportunities. Contract awards and supply pacts point to continued investment in regional energy infrastructure.
Automakers face large recalls over safety defects, adding cost and reputational pressure as regulators scrutinize vehicle systems. The recalls cover rearview camera failures and seat-belt faults affecting tens of thousands of cars.
Escalating strikes and drone attacks in and around the Black Sea and Russia’s ports reflect ongoing military pressure between Kyiv and Moscow, raising geopolitical risks for shipping and regional security.
Iran’s economy is convulsing as the rial collapses and street protests spread; Tehran has replaced its central bank governor in a bid to stabilise markets. The moves indicate deep political and economic stress ahead of 2026.
Semiconductor supply and national industrial policy are converging as TSMC ramps cutting-edge 2nm production and Beijing mandates domestic-equipment quotas. The twin moves accelerate regional tech competition and onshoring.
European banks finished 2025 strongly but face regulatory, rate and geopolitical tests in 2026, even as global lenders like Citi exit risky markets. Strategic divestments and capital plans will shape the sector next year.
