Global equities rose broadly as buying demand for tech stocks rebounded, with the Nasdaq 100 Index poised to erase its December losses. Meanwhile, gold, silver, and copper prices surged to record highs.
Nasdaq 100 futures climbed 0.6%. In premarket trading, Oracle and Micron Technology shares rose over 2%, while most of the "Magnificent Seven" tech giants advanced. In Europe, tech and mining sectors led gains. Asian markets also saw outperformance in AI-sensitive indices, including South Korea’s Kospi. S&P 500 futures rose 0.4%.
Commodity markets remained in focus, not just due to record metal prices. Oil prices also climbed amid escalating geopolitical tensions after the U.S. tightened sanctions on Venezuela. Global bond markets remained under pressure, with Japanese government bonds declining for a second day following the Bank of Japan’s recent rate hike. The U.S. dollar weakened.
A late-week rebound in U.S. stocks, driven by bargain-hunting, has fueled optimism for a year-end rally. While concerns linger over the sustainability of AI-related trades and elevated valuations, positive expectations around economic growth and corporate earnings are lifting sentiment.
"Year-end risk appetite is driving a liquidity surge," said Zhang Jiaming, Chief Investment Officer at BEA Union Investment. "U.S. economic resilience supports corporate earnings next year, while Fed rate cuts will ease financial conditions. Improving cost efficiency in computing is also easing worries over AI capital expenditure and returns."
Gold’s appeal as a safe haven strengthened amid geopolitical risks and expectations of further Fed easing, boosting prices. Loose monetary policy typically benefits non-yielding assets like gold and silver.
Spot gold surged over 1.6%, surpassing its October record of $4,381 per ounce. Silver and copper also hit all-time highs, while platinum extended gains for an eighth straight session.
"Precious metals have notably decoupled from other assets recently," noted Roberto Scholtes, Strategist at Banco Sabadell. "Earlier this year, gold moved in tandem with the dollar and high-beta assets like tech stocks and crypto, but that correlation has faded."
Brent crude rose above $61 per barrel after U.S. forces inspected a tanker near Venezuela, escalating pressure on Caracas as Washington aims to curb its oil revenue.
**Japan’s Bond Market in Focus** Following the Bank of Japan’s first rate hike in 30 years, the yen initially weakened to 157.78 per dollar before rebounding. Japan’s top currency official expressed concern over "one-sided, sharp moves" post-policy meeting.
Meanwhile, speculation of faster rate hikes pushed Japan’s 10-year yield to its highest since February 1999. The U.S. 10-year yield rose 2 basis points to 4.17%.
**Corporate Highlights** China Vanke secured creditor support to extend bond grace periods, averting default amid the property crisis. Netflix refinanced part of a $59 billion bridge loan for a potential Warner Bros. Discovery bid. Harbour Energy agreed to buy LLOG Exploration for $3.2 billion, expanding into the U.S. Gulf of Mexico. A private equity consortium led by Permira and Warburg Pincus struck an $8.4 billion deal for Clearwater Analytics. Seven & i Holdings urged its U.S. convenience unit to accelerate turnaround efforts ahead of a planned IPO.
**Market Moves** HSBC’s CIO William Sels noted, "Investment is shifting to incremental areas, slowing capex growth."
**Key Market Data** **Equities** S&P 500 futures +0.4% Nasdaq 100 futures +0.6% Euro Stoxx 600 -0.2%
**FX** Bloomberg Dollar Spot Index -0.2% EUR/USD +0.2% at $1.1735 GBP/USD +0.4% at $1.3435 USD/JPY -0.2% at 157.36
**Crypto** Bitcoin +1.9% at $89,812.92 Ethereum +2.4% at $3,043.69
**Bonds** U.S. 10-year yield +2 bps at 4.17% Germany 10-year yield +1 bp at 2.91% UK 10-year yield +1 bp at 4.53%
**Commodities** WTI crude +1.9% at $57.62/barrel Spot gold +1.7% at $4,410.56/ounce
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