Wall Street Ends Mixed as Tech and Financial Stocks Weigh on Markets Amid Thin Holiday Trading 
U.S. Dollar Starts 2026 Weak as Yen, Euro and Sterling Hold Firm Amid Rate Cut Expectations 
China Manufacturing PMI Rebounds in December, Offering Boost to Economic Growth Outlook 
Forex Markets Hold Steady as Traders Await Fed Minutes Amid Thin Year-End Volumes 
Citi Forecasts a Volatile but Ongoing Bull Market for S&P 500 in 2026 
China Imposes 55% Tariff on Beef Imports Above Quota to Protect Domestic Industry 
Oil Prices Slide in 2025 as Oversupply and Geopolitical Risks Shape Market Outlook 
U.S. Stock Index Futures Steady as Markets Await Fed Policy Clues in Holiday-Thinned Trade 
Oil Prices Stabilize at Start of 2026 as OPEC+ Policy and Geopolitical Risks Shape Market Outlook 
South Korea Factory Activity Returns to Growth in December on Export Rebound 
Gold Prices Rebound in Europe as Geopolitical Tensions and Fed Outlook Support Bullion 
Asia Manufacturing PMI Rebounds as Exports and Tech Demand Drive Growth into 2026 
Asian Markets Slip as Precious Metals Cool, Geopolitical Tensions Weigh on Sentiment 
South Korean Won Slides Despite Government Efforts to Stabilize Currency Markets 
USDA $12 Billion Farm Aid Program Draws Mixed Reactions from Row Crop Farmers 
Federal Reserve Begins Treasury Bill Purchases to Stabilize Reserves and Money Markets 
U.S. Dollar Slides Toward Biggest Annual Loss Since 2017 as 2026 Risks Loom 
China’s yuan strengthened to a fresh 32-month high against the U.S. dollar on Monday, supported by a combination of central bank guidance, a weaker dollar, and seasonal corporate demand ahead of the Lunar New Year. The People’s Bank of China (PBOC) continued its strategy of carefully steering the currency higher by setting a stronger official midpoint, while still keeping it weaker than market expectations to control the speed of appreciation.
Before trading began, the PBOC fixed the midpoint at 6.9843 per dollar, its strongest level since mid-May 2023. However, the fixing was notably 551 pips weaker than a Reuters market estimate, marking the largest weak-side deviation from forecasts since such data became available in 2022. This reflects the central bank’s balancing act: allowing gradual yuan strength without triggering excessive volatility.
In onshore trading, the yuan rose to a high of 6.9539 per dollar, the strongest since May 2023, before easing slightly. The offshore yuan followed a similar trend, hovering near 6.95 per dollar. Overall, the Chinese currency has gained about 0.5% against the dollar so far this year, building on a strong 4.5% appreciation in 2025, its best annual performance since 2020.
Analysts expect Chinese authorities to increasingly resist further yuan appreciation. Barclays noted that policymakers are likely to introduce more measures in the coming weeks and months to ease upward pressure, maintaining a cautious outlook for a potential medium-term reversal.
Seasonal factors have also played a role in supporting the yuan. As the Lunar New Year approaches in mid-February, Chinese exporters typically convert more foreign currency receipts into yuan to cover expenses such as employee bonuses. Market participants expect this support to fade soon as holiday-related conversions slow.
Meanwhile, broader Asian currency markets saw gains after the Japanese yen surged on speculation of possible coordinated intervention by U.S. and Japanese authorities, adding another layer of complexity to regional foreign exchange dynamics.
