Latest Finance-Economy News
US Economy Grows 4.3% in Q3, Fastest in Two Years
Revised data shows US GDP expanded at a 4.3% annualized rate in Q3 2025, surpassing expectations due to strong consumer spending up 3.5% and business investment. This marks the strongest growth in two years, powering S&P 500 and Dow to new all-time highs amid AI enthusiasm.
Forecasts suggest potential 5% growth in 2026 from tax cuts and fiscal stimulus.
Gold and Silver Prices Soar 65% and 150% in 2025, Then Correct Sharply
Gold rose over 65% this year to highs above $4,550/oz before dropping 4.4-6%, now around $4,340-$4,385; silver gained 150%, hit $84 briefly, fell 9% to above $71. Gains driven by weak USD, inflation fears, and central bank buys; recent pullback due to profit-taking and collateral demands.
Year-end records reflect safe-haven demand amid tensions.
Federal Reserve Cuts Rates to 3.50-3.75%, Signals Fewer Cuts Ahead
Fed lowered federal funds rate by 25bps at year-end meeting, with three dissenters favoring deeper or no cut. Move supports growth but divided FOMC may limit future easing amid inflation risks.
Markets eye volatility from tariffs, AI bubble, and stretched valuations.
US November Jobs Report Mixed: Unemployment at 4.6%, Private Payrolls Up
Economy lost 41k jobs Oct-Nov due to federal cuts, but private payrolls rose 121k, led by health care. Unemployment hit 4.6%, above FOMC forecast; data distorted by shutdown and holidays.
December report expected for clearer trends.
European Markets Optimistic, German Recovery Forecast for 2026
STOXX 600 up 0.20%; DAX futures above 24,500, Euro Stoxx near 5,800 amid earnings hope. Bundesbank projects gradual German growth from 2026 via spending and exports.
Cautious outlook despite volatility.
Asian Stocks Rally: Nikkei Up 2.51% to 50,750
Japan's Nikkei surged 1,243 points weekly on blue chips; Tokyo inflation slowed but BOJ ready for hikes if wages rise. Chinese CSI 300 and Shanghai Composite gained solidly.
PBOC adopts moderately loose policy with liquidity tools.
Chinese Yuan Strengthens Beyond 7/USD First Time Since 2023
Onshore yuan hit 6.9960 after PBOC weaker reference rate, signaling comfort with appreciation. PBOC avoids aggressive cuts, focuses on injections and bonds to avoid instability; fiscal policy key ahead.
Contrasts Fed, ECB, BOJ easing.
US Inflation Cools: November CPI at 2.7% Headline, 2.6% Core
CPI softer than expected vs. September's 3.0%, but possibly biased low by data issues and holiday pricing. Eases pressure but tariffs pose upside risks.
Supports Fed's cautious stance.
Global M&A Hits $3.8 Trillion in 2025 Amid Records
Year-end M&A activity surged to $3.8T despite tensions; markets hit records with Dow, gold, silver highs on Dec 26. Driven by earnings beats (81% in Nov) and tech peaks.
Cautious optimism prevails.
Crude Oil Recovers to $61.55/Barrel Brent
Spot Brent strengthened after last week's decline, trading around $61.55. Reflects broader commodity volatility amid economic data and policy shifts.
US dollar steady above 98 on DXY.
2025 Year Review: Political Shifts, Trade Tensions Reshape Markets
Trump inauguration, tariffs caused volatility; tech drove gains, S&P up 3.65% in Dec. Robust Q3 GDP, consumer spending fueled recovery; gold spiked 11% on geopolitics.
Ended with records but unresolved issues linger.
Canada GDP Contracts in October, In Line with Expectations
Canadian MoM GDP fell 0.3% in Oct from 0.2%, as expected; Nov data also released. Contributes to global growth divergence picture.