Markets steady as yen strengthens and precious metals hit records
Global equities showed caution while the Japanese yen gained on intervention speculation and gold neared $4,500 with silver hitting $70 all-time high.
Equities reflect cautious positioning
Global equity markets were steady in early trading, reflecting a cautious tone as investors assessed a mixed macro and policy backdrop.
US stock index futures were little changed, with both the S&P 500 and Nasdaq 100 hovering around flat levels after recent gains.
European markets were more uneven, as investors balanced softer economic data against expectations that the US Federal Reserve (Fed) remains on a gradual easing path.
Yen strengthens on intervention speculation
In currency markets, the Japanese yen strengthened against the US dollar and most major peers, supported by renewed speculation over official intervention.
Japanese authorities reiterated their readiness to act to curb excessive currency moves, a message that gained traction in thin, holiday-affected trading conditions.
The move helped stabilise the yen after a period of sustained weakness, although broader sentiment still reflects scepticism over pace of Bank of Japan (BoJ) tightening.
Forex markets remain sensitive to intervention threats.
Oil markets balance competing forces
Oil prices were largely unchanged, with crude markets caught between competing forces affecting supply and demand dynamics.
Oversupply concerns, driven by resilient US production and ample global inventories, capped upside momentum following Monday’s surge higher.
At the same time, geopolitical risks remained firmly in focus, particularly around Venezuelan exports and Russian supply routes, underpinning this week’s move higher and keeping a risk premium embedded in prices and preventing a sharper pullback.
Australian central bank signals inflation concerns
In Australia, minutes from the Reserve Bank of Australia's (RBA) December meeting highlighted growing unease around inflation dynamics.
Policymakers acknowledged that recent inflation readings have tilted risks to the upside and discussed the conditions under which a rate hike in 2026 might be warranted.
However, the board emphasised that it was too early to draw firm conclusions.
UK data reinforce easing expectations
UK data continue to point to a slowing economic backdrop. Recent indicators suggest subdued growth momentum and softening labour market conditions, reinforcing market expectations that the Bank of England (BoE) will maintain an easing bias.
While inflation has moderated, policymakers remain cautious, balancing the need to support activity against lingering price pressures.
Precious metals surge to fresh records
Precious metals extended their strong run, with both gold and silver pushing to fresh record highs.
Gold, up more than 3% since the start of the week, climbed close to $4,500.00 per troy ounce while silver surged to a new all-time peak of $70.00.
The rally reflects falling real yields, rate cut expectations and demand for hedges.
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