United States
Wall Street’s post-Christmas session proved to be a quiet affair, with the S&P 500 finishing essentially flat near the 6,930 mark. While Friday’s trading lacked fireworks, the broader picture remains encouraging – the benchmark index notched its best weekly performance in a month, supported by ongoing signs of economic resilience that have bolstered expectations for corporate earnings.
The technology sector presented a mixed bag. Most megacaps edged lower, dragging the Bloomberg Magnificent Seven Index down by 0.3 per cent, though Nvidia bucked the trend after announcing a licensing agreement with artificial intelligence startup Groq. The Nasdaq 100 was little changed, while the Russell 2000 small-cap index slipped 0.5 per cent. The Dow Jones Industrial Average also finished essentially flat.
Bond markets remained largely static, with the 10-year Treasury yield holding steady at 4.13 per cent. The two-year yield edged down two basis points to 3.48 per cent, while the 30-year yield ticked up two basis points to 4.81 per cent. Despite Treasuries tracking towards a monthly loss, they remain on course for their strongest annual performance since 2020, having benefited from three Federal Reserve rate cuts this year. The US dollar, meanwhile, wrapped up its worst week since June.
In corporate news, Target rose after reports that an activist investor had built a stake in the retailer. Warner Bros. Discovery slid following reports that Paramount Skydance could walk away from its US$30-per-share cash bid. Coupang advanced after identifying a former employee allegedly responsible for accessing personal data of 33 million customers.
Europe
European equities struggled for direction earlier in the week, with the Stoxx 600 slipping 0.1 per cent as sector fortunes diverged sharply.
The mining sector emerged as a clear winner, advancing 0.8 per cent as commodity prices surged. Rio Tinto added 1.6 per cent while Poland’s KGHM rallied 4.4 per cent to a record close, buoyed by gold, silver and copper all touching fresh highs. Fresnillo gained 2.8 per cent on the precious metals strength.
Automotive stocks faced headwinds, with the sector declining 1.0 per cent. Stellantis tumbled 4.6 per cent, while Mercedes-Benz dipped 0.7 per cent following confirmation it would pay approximately US$120 million to settle diesel emissions claims in the United States. Porsche slipped 0.5 per cent after announcing plans to close its Chinese charging network.
The utilities sector bore the brunt of selling pressure, falling 0.9 per cent. Danish wind energy giant Ørsted plunged 12.7 per cent after the Trump administration suspended leases for five offshore wind farms under construction along the US East Coast, citing national security concerns.
Energy stocks managed modest gains of 0.3 per cent, lifted by Saipem’s 4.3 per cent surge following news of a US$3.1 billion contract win in Qatar. Shell added 0.4 per cent, BP rose 0.7 per cent, and Repsol gained 1.8 per cent.
Healthcare stocks slipped 0.2 per cent after US President Donald Trump announced deals with nine pharmaceutical companies on Friday. Novo Nordisk fell 2.1 per cent, while Sanofi dropped 1.0 per cent.
The food and beverage sector was among the weakest performers, declining 1.1 per cent, with Nestlé down 1.0 per cent, Diageo falling 3.7 per cent, and AB InBev sliding 2.5 per cent.
Australia
Local investors are set for a tentatively positive start to the week, with ASX 200 futures suggesting an opening gain of around 0.3 per cent based on fair value calculations. Futures were trading down 0.1 per cent at 8,768 as of 4:00pm Sydney time on Friday.
The session features several companies trading ex-dividend, including IVV, IJH, IJR, and IOO among others. On the corporate front, Cobram Estate Olives received an upgrade to “buy” from Ord Minnett, with a price target of $3.65.
Resources heavyweights BHP and Rio Tinto warrant close attention following copper’s surge to record levels in both China and New York on supply concerns. Rio Tinto is also reportedly preparing to switch its iron ore pricing index reference early next year. Meteoric Resources announced its rare earths ventures had obtained licences for Brazilian projects.
ADR movements suggest BHP could open higher, with its American depositary receipts up 1.7 per cent to an Australian dollar equivalent of $46.08, representing a 1.0 per cent premium to Friday’s Sydney close.
The Australian dollar has climbed to its highest level since October 2024, supported by shifting expectations around Reserve Bank of Australia monetary policy. The currency last traded around US67.10 cents, while the New Zealand dollar held steady at US58.36 cents.
China signalled sustained fiscal support for growth in its 2026 plan, while the country’s iron ore port stockpiles reached their highest levels in more than a year.
Commodities and currencies
Precious metals remain the standout story, with gold advancing 1.1 per cent to US$4,528.84 per ounce and extending its historic rally. Silver and platinum also pushed higher, with the surge supported by elevated central bank purchases, exchange-traded fund inflows and expectations for further rate cuts in 2026.
Oil markets moved in the opposite direction, with West Texas Intermediate crude falling 2.5 per cent to US$56.87 per barrel. Brent crude declined 2.6 per cent to US$60.64 per barrel. Prices were pressured by progress in Ukraine peace negotiations, which could potentially see more Russian oil return to global markets.
In currency markets, the euro held steady at US$1.1774, while the British pound slipped 0.1 per cent to US$1.3504. The Japanese yen weakened 0.4 per cent to 156.52 per dollar. China vowed to prevent the yuan’s exchange rate from overshooting.
The bond market landscape sees Australian 10-year yields sitting at 4.74 per cent, while three-year yields rest at 4.12 per cent. Germany’s 10-year yield was unchanged at 2.86 per cent, and Britain’s 10-year yield held steady at 4.51 per cent.
Economic Calendar
No major data
This article was written by Calvin Curdie, Rivkin Securities Pty Ltd. Enquiries can be made via [email protected] or by phoning +612 8302 3632.
