On Friday, the three major U.S. stock indices closed mixed, capping a week of losses. For the week, the Dow Jones Industrial Average fell 0.53%, the S&P 500 dropped 0.35%, and the Nasdaq Composite declined 0.06%. At the closing bell, the Dow had lost 285.30 points, or 0.58%, to settle at 49,098.71. The Nasdaq, however, gained 65.22 points, a rise of 0.28%, finishing at 23,501.24. The S&P 500 edged up by a marginal 2.26 points, or 0.03%, to close at 6,915.61. In European markets, Germany's DAX 30 index rose 25.17 points, or 0.10%, to 24,901.41. Conversely, Britain's FTSE 100 index fell 10.15 points, or 0.10%, to 10,139.90. France's CAC 40 index dipped 5.84 points, or 0.07%, to 8,143.05. The Euro Stoxx 50 index decreased by 6.67 points, or 0.11%, to 5,949.50. Spain's IBEX 35 index dropped 120.02 points, or 0.68%, to 17,543.38, while Italy's FTSE MIB index fell 250.73 points, or 0.56%, to 44,840.50. Bitcoin traded within a range of $89,000 to $91,000, while Ethereum saw a slight decline, trading at $2,949.5. The U.S. Dollar Index fell below the 98 level for the first time since December 30 of last year. Gold and silver surged powerfully to new all-time highs. Spot gold climbed 1.05% to $4,988 per ounce. Spot silver broke through the $103 per ounce barrier, soaring more than 7.4%. Oil prices advanced on Friday after U.S. President Trump intensified pressure on Iran by imposing new sanctions on vessels transporting Iranian oil and announced a naval fleet was heading towards the Middle Eastern nation. Brent crude futures rose by $1.82, or 2.84%, to settle at $65.88 per barrel. West Texas Intermediate (WTI) crude futures for March delivery increased by $1.71, or 2.88%, closing at $61.07 per barrel. The U.S. Leading Economic Index declined again in October and November, with weak consumer confidence cited as the primary factor. Justyna Zabinska-La Monica, Senior Manager of Business Cycle Indicators at The Conference Board, commented on the November data, stating that weak consumer confidence was the main driver of the decline throughout 2025, with a secondary factor being a drop in new orders. Other components were relatively stable in November, with the only significant positive contribution coming from labor market data, such as initial jobless claims and manufacturing weekly hours. Despite real GDP growth reaching 4.4% in the third quarter of 2025, the leading indicators still suggest a potential U.S. economic slowdown in 2026. Wall Street's competitive advantage continues to widen, prompting the EU to call on banking regulators to ease regulations to enhance competitiveness. A core political group within the EU has demanded that the bloc's banking and market regulators consider the declining competitiveness of EU industries while performing their financial oversight duties. This call comes as the EU undertakes a comprehensive revision of its financial regulatory framework. A document from the European People's Party (EPP), the largest party in the European Parliament, proposed that to help the EU achieve broader economic growth goals, the mandates of regulatory authorities should be expanded to explicitly include competitiveness considerations. This requirement would apply to bodies overseeing EU banking, securities markets, and insurance. German Chancellor Merz's CDU party has also joined the call to reduce the regulatory burden, with Merz having previously stated in meetings with bankers that current EU financial regulations are "too strict." The spread on U.S. investment-grade corporate bonds has narrowed to its lowest level this century. Despite tariff threats from the Trump administration causing volatility in other assets this week, the financing cost for U.S. blue-chip companies relative to U.S. Treasuries has fallen to its lowest point this century as investors scramble to buy corporate debt. According to ICE BofA data, the borrowing cost for investment-grade firms is only 0.73 percentage points higher than comparable U.S. Treasuries, the tightest credit spread since June 1998. James Vokins, Head of Core Income and Investment Grade Credit at Aviva Investors, noted, "Demand for U.S. investment-grade bonds remains very, very strong, and in terms of spreads, we are approaching historic lows." Silver prices breached the significant $100 per ounce milestone, while gold also hit new highs, driven by geopolitical turmoil and expectations of U.S. interest rate cuts, pushing the precious metal close to $5,000 per ounce as investors flocked to safe-haven assets. At the time of writing, spot silver had reached $101 per ounce, and spot gold was quoted at $4,986. Philip Newman, a Director at consultancy Metals Focus, stated, "Silver will continue to benefit from the same factors supporting gold's investment demand. Additionally, persistent tariff concerns and still-tight physical liquidity in the London market will provide extra support for silver." Independent metals trader Tai Wong commented, "Traders steadily pushed and achieved the $100 milestone for silver; the next step is to see if it can close above this level or if profit-taking begins soon." Wong added, "Gold's role as a safe-haven and asset allocation tool during periods of high economic and political uncertainty makes it a necessity for strategic portfolios. This is not just a fleeting 'perfect storm' but a signal of fundamental, underlying changes." The Chilean Mining Association has warned that while the new government's growth incentives might accelerate the release of new copper mining capacity, any substantial increase in production will take years to materialize. The association, whose members include local branches of global mining giants like BHP Group and Anglo American, aligns with President-elect José Antonio Kast's policy promises to streamline approval processes and speed up mining investments. Kast's team has suggested that Chile's mining output could increase by up to 20% within one to two years, injecting much-needed supply into the tight copper market. However, the association's executive chairman, Joaquin Villarino, emphasized that expectations for production growth must remain realistic given structural challenges. In an interview on Thursday, Villarino stated, "The association has no basis or estimates to support such a large increase in such a short time. Production levels cannot change overnight." Meta announced it is pausing the use of its AI character feature for teenagers across all its platforms globally. The company clarified that this move does not signify an abandonment of the technology's development but is intended to create a specialized version of the AI characters tailored for younger users. Notably, this decision comes just days before a lawsuit against Meta is set to go to trial in New Mexico, where the company is accused of failing to adequately police its platforms and protect underage users from sexual exploitation. UBS analysts suggested in a research report that Intel's progress with its 14A process technology could lead to collaborations with leading tech companies. The analysts noted that Intel is expected to release its 14A process design kit by the end of this year, potentially paving the way for partnerships with one or more major tech firms. Companies like NVIDIA, Apple, Amazon, and a high-end consumer electronics manufacturer were listed as potential partners. The analysts stated, "Such collaborations are likely to be positive catalysts for Intel's stock price, but we remain cautious about the profit outlook for this business." Concurrently, UBS raised its price target for Intel from $49 to $52 per share.
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