United States
Wall Street finished the week on a strong note as dip buyers returned to snap up beaten-down tech stocks following their sharp mid-week selloff.
The S&P 500 climbed 0.9 per cent on Friday, its second consecutive gain, wiping out its weekly loss to finish marginally higher. The Nasdaq 100 jumped 1.3 per cent and the Dow Jones Industrial Average rose 0.4 per cent, though the blue-chip index still ended the week down 0.7 per cent.
Nvidia led gains in megacap tech stocks, while Oracle surged about 6.5 per cent, recovering some of the ground lost earlier in the week after news of financing hiccups at one of its data centres rattled the AI trade.
Volume spiked as traders navigated “triple witching”, the quarterly event where derivatives contracts tied to stocks, index options and futures all mature simultaneously. More than 26 billion shares changed hands on US exchanges, about 50 per cent above the 12-month average. Citigroup estimated that $US7.1 trillion of notional open interest expired during the session.
Benchmark Treasuries recorded their first weekly gain since the end of November, though yields edged higher on Friday. The US 10-year yield rose three basis points to 4.15 per cent.
Fed Bank of New York President John Williams told CNBC there is no urgency to cut rates again given recent employment and inflation data, reinforcing expectations for a pause after three consecutive reductions. Traders continue to bet on two rate cuts in 2026.
Investors are now watching for the traditional Santa Claus rally – the period encompassing the last five trading sessions of the year and the first two of the new one. Since 1928, the S&P 500 has climbed 75 per cent of the time during this period, rising 1.3 per cent on average, according to Citadel Securities.
Europe
European stocks closed at a fresh record on Friday, wrapping up the final full trading week of the year with optimism around further policy easing and resilient US growth.
The Stoxx 600 gained 0.4 per cent, setting it up for a sixth consecutive monthly advance. Value stocks in Europe are heading for their biggest outperformance over growth shares on record.
Carnival was the standout, with its London-listed shares soaring 16.6 per cent after the cruise operator reported earnings that topped estimates and gave a better-than-expected profit outlook for next year while reinstating dividend payments.
Banks reached a new 2008 high, led by HSBC which hit a record close. BBVA rose 1.1 per cent after unveiling a €4 billion buyback following its failed bid for Banco Sabadell. The European insurance sector also closed at an all-time high.
Defence stocks continued their strong run, with Rheinmetall and KNDS securing a new €4.2 billion order for Puma infantry vehicles. Saab gained 0.9 per cent after securing €130 million in orders.
In shipping news, A.P. Moller-Maersk completed its first Red Sea transit in nearly two years, marking a tentative step toward restoring routes through the Suez Canal following years of conflict in the region.
Consumer stocks underperformed after Nike’s warning about persistent weakness in China led to negative read-across for European names including Adidas and Puma.
Australia
The local market is set to open the Christmas week higher, with S&P/ASX 200 futures pointing to a gain of about 0.5 per cent. The market will only trade three times this week including a shortened session on Christmas Eve, with the ASX closed on Thursday and Friday.
The key event on the local calendar is Tuesday’s release of the RBA Board meeting minutes. The December decision came with a hawkish tone, and Governor Michele Bullock’s subsequent press conference reinforced this stance, noting that a rate cut was not considered while the board did discuss scenarios that could warrant a hike.
BHP will be in focus after chief executive Mike Henry said the company is moving on from its aborted attempt to buy Anglo American, preferring instead to focus on its copper projects and opportunities in Canada.
Premier Investments has extended John Bryce as interim chief executive until July 2026. Wisetech founder Richard White’s investment vehicle RealWise entered a collar transaction with Macquarie.
Spark New Zealand has partnered with Challenger to establish a new financing structure for its interest-free payment plans, selling eligible receivables for about $NZ240 million.
Woodside Energy faces uncertainty after a shock departure left the company without its key gas champion.
Ampol closed a $500 million delayed-draw subordinated notes facility offer.
AustralianSuper, the country’s largest pension fund, is reportedly planning to cut its global stock allocation on AI concerns, according to the Financial Times.
Commodities and currencies
Oil prices rebounded as President Trump intensified his blockade on Venezuelan crude exports. The US is still pursuing a third oil tanker near Venezuela after boarding two vessels in recent weeks.
West Texas Intermediate crude rose 0.9 per cent to US$56.66 per barrel on Friday, while Brent gained 1.1 per cent to US$60.47. However, both benchmarks posted their second consecutive weekly decline as concerns over a growing supply glut outweighed geopolitical risks.
Gold held near record levels, up 0.1 per cent to US$4,338.88 per ounce. Goldman Sachs has flagged record gold prices and weaker oil in its 2026 commodity outlook.
Iron ore slipped 0.4 per cent to US$104.50 per tonne.
The Australian dollar was flat at US66.15 cents. The euro was little changed at US$1.1711, while the British pound held steady at US$1.3375. The Japanese yen fell 1.4 per cent to 157.69 per dollar after the Bank of Japan raised rates as expected but uncertainty over its policy path persisted, pushing the 10-year JGB yield to its highest level since 1999.
Bitcoin jumped 2.7 per cent to around US$87,864, while Ethereum surged 5.6 per cent to US$2,985.
Economic Calendar
No major data releases
This article was written by Calvin Curdie, Rivkin Securities Pty Ltd. Enquiries can be made via [email protected] or by phoning +612 8302 3632.
