United States
US equities finished the session lower as investors trimmed exposure to large-cap technology stocks heading into year-end. The S&P 500 fell 0.3%, while the Nasdaq 100 slid 0.5%, reflecting weakness across most of the major technology names. Tesla led declines among the megacaps, while Nvidia and Meta Platforms also closed lower. The Dow Jones Industrial Average lost 0.5%, and the MSCI World Index eased 0.3%.
Bond markets offered some stability, with the yield on the US 10-year Treasury slipping two basis points to 4.11%. Currency markets were subdued, with the Bloomberg Dollar Spot Index little changed. The Japanese yen strengthened modestly, rising 0.3% to 156.08 per dollar.
Despite the late pullback, US equities remain firmly higher for the year, with the S&P 500 up around 17% year to date. That performance has defied earlier fears of a tariff-driven sell-off, though the index has lagged several global peers. Sector-level data shows information technology remains one of the strongest performers, even as relative gains have narrowed compared with other regions.
Volatility was most pronounced in commodities rather than equities. Bitcoin briefly topped US90,000 before reversing to finish lower on the day, while Ether also edged down.
Corporate news was active. SoftBank Group is reported to be in advanced talks to acquire DigitalBridge Group, pushing DigitalBridge shares more than 40% higher in premarket trading. Elsewhere, a joint venture between Chile’s Codelco and lithium supplier SQM aims to become the world’s largest lithium producer, while Airbus ramped up aircraft production in the final days of the year as confidence grows around meeting revised delivery targets.
Europe
European shares edged to a fresh record as the region entered the final trading week of the year. The Stoxx Europe 600 closed 0.1% higher, supported by gains in real estate and telecommunications stocks. Mining shares initially outperformed as copper touched a peak before retreating alongside broader metals.
Markets remained sensitive to geopolitical developments, with defence stocks easing after comments suggesting progress toward a potential peace agreement between Ukraine and Russia. A basket of European defence stocks fell 1.1% following positive signals from talks involving US, Ukrainian and Russian leadership.
Stock-specific moves were notable. International Personal Finance jumped 5.9% after BasePoint announced plans to acquire the company in a deal valuing it at approximately £543 million. European equities are now on track to close their third consecutive year of gains, with the benchmark index also heading for one of its strongest quarters in two years, supported by optimism around global growth and lower borrowing costs.
Bond yields across the region declined, with Germany’s 10-year yield falling three basis points to 2.83% and Britain’s 10-year yield down two basis points to 4.49%.
Australia
The Australian sharemarket closed lower as weakness in energy and technology stocks outweighed strength among silver miners. The S&P/ASX 200 fell 32.9 points, or 0.4%, to 8,729.8, giving back some of last week’s gains. While the index is still up 6.9% for the year, it continues to trail many offshore markets posting double-digit returns.
Ten of the 11 sectors finished in the red. Technology stocks weighed on the index, with NextDC down 2.1% and WiseTech Global slipping 1%. Energy names also weakened, with Santos and Beach Energy both lower.
Miners experienced a volatile session. Rio Tinto fell 0.5% after touching an all-time high earlier in the day, while BHP eased 0.4%. Silver miners surged as the metal pushed above US80 an ounce, with Investigator Resources soaring 36% and several peers posting double-digit gains. Gold miners, however, pared early strength as bullion prices retreated.
Among corporate movers, Star Entertainment jumped 7.7% after announcing senior leadership changes, while Weebit Nano surged 18% after signing a licence agreement with Texas Instruments. The Australian dollar climbed to a 14-month high near US67.27¢, supported by strength in key commodity prices.
Commodities and currencies
Commodity markets were dominated by sharp reversals in precious metals after a powerful year-end rally unwound in thin trading. Spot gold fell as much as 5%, its largest intraday drop since October, while silver plunged up to 11%, marking its biggest fall since 2020. Platinum also suffered heavy losses.
Oil prices moved higher, with West Texas Intermediate rising 2% to US57.87 a barrel and Brent gaining 1.8% to US61.75, supported by geopolitical tensions and commitments from China to support economic growth. Despite the rebound, Brent remains on track for a fifth consecutive monthly decline.
In bulk commodities, iron ore climbed 1.3% to US106.05 a tonne. Currency moves were relatively contained, with the euro steady near US1.1771, the British pound flat at US1.3504, and the Australian dollar slightly softer in offshore trade at around US66.93¢.
Cryptocurrencies eased alongside broader risk assets, with Bitcoin down 0.4% near US87,100.
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.
