Asian Markets Slip as Precious Metals Cool, Geopolitical Tensions Weigh on Sentiment 
Trump Delays Tariff Increases on Furniture and Cabinets for One More Year 
Forex Markets Hold Steady as Traders Await Fed Minutes Amid Thin Year-End Volumes 
U.S. Stock Futures Slip as Year-End Trading Turns Cautious 
Citi Forecasts a Volatile but Ongoing Bull Market for S&P 500 in 2026 
USDA $12 Billion Farm Aid Program Draws Mixed Reactions from Row Crop Farmers 
China Imposes 55% Tariff on Beef Imports Above Quota to Protect Domestic Industry 
Japanese Business Leaders Urge Government Action as Weak Yen Strains Economy 
Oil Prices Stabilize at Start of 2026 as OPEC+ Policy and Geopolitical Risks Shape Market Outlook 
Gold Prices Rebound in Europe as Geopolitical Tensions and Fed Outlook Support Bullion 
Asian Currencies Trade Flat as Dollar Weakens in Thin New Year Trading 
U.S. Dollar Steadies Ahead of Fed Minutes as Markets Eye Policy Divisions 
South Korea Factory Activity Returns to Growth in December on Export Rebound 
China Manufacturing PMI Rebounds in December, Offering Boost to Economic Growth Outlook 
U.S. Stock Index Futures Steady as Markets Await Fed Policy Clues in Holiday-Thinned Trade 
U.S. Dollar Slides Toward Biggest Annual Loss Since 2017 as 2026 Risks Loom 
Asian Stock Markets Start New Year Higher as Tech and AI Shares Drive Gains 
Asian markets opened weaker on Wednesday after Wall Street losses, with investors digesting cautious remarks from Federal Reserve Chair Jerome Powell on interest rates. The MSCI Asia-Pacific index outside Japan fell 0.2% early, following the S&P 500’s 0.6% drop—its largest one-day loss in three weeks. Japan’s Nikkei declined 0.4%, while Australian shares slid 0.7% ahead of key CPI data. U.S. futures remained flat.
The U.S. dollar stabilized after back-to-back declines, with the dollar index up 0.1% at 97.301. Against the yen, the greenback slipped 0.1% to 147.575. Analysts at Westpac noted Powell’s remarks stressed “upside risks to inflation and downside risks to employment,” underlining the Fed’s delicate balancing act.
Despite the pullback, Asian equities are still on track for their strongest month in a year, buoyed by regional tech strength, a softer U.S. dollar, and renewed expectations of Fed rate cuts. Fed funds futures now imply a 93% chance of an October cut, up from 89.8% the day before. U.S. Treasuries attracted buyers, pushing 10-year yields down to 4.1061%, while the 2-year yield eased to 3.5673%.
On the macro front, weaker U.S. PMI data from S&P Global highlighted slowing business activity for a second straight month, raising growth concerns. Citi analysts flagged underlying weakness, pointing to firms struggling to pass on higher costs due to subdued demand and competition.
In commodities, Brent crude rose 0.3% to $67.86 per barrel as delays in Iraqi Kurdistan oil exports eased oversupply fears. Meanwhile, spot gold dipped 0.1% to $3,760.90 per ounce after hitting a record high the previous day.
Global investors remain cautious, balancing Fed signals, soft U.S. data, and commodity price swings as markets await further economic cues.
