1. Asia-Pacific markets give up early gains after third Fed cut of the year
Asia-Pacific markets gave up earlier gains to trade mostly lower Thursday, following the Federal Reserve’s third rate cut of the year. The U.S central bank reduced the Federal Funds rate by 25 basis points to 3.5%-3.75%, and signalled that it was done easing for now. Fed Chair Jerome Powell said at his post-meeting news conference that the reduction puts the Fed in a comfortable position as far as rates go. “We are well-positioned to wait and see how the economy evolves,” Powell said, while noting that President Donald Trump’s tariffs had fuelled inflation. The U.S. dollar index fell as much as 98.54 on Thursday, marking its weakest level since Oct. 21. Japan’s Nikkei 225 started the day in positive territory, but fell 0.58%. The Topix was also down 0.52%. South Korea’s Kospi also reversed course to dip 0.56%, and the small-cap Kosdaq lost 0.36%. Hong Kong Hang Seng index advanced 0.1%, but mainland China’s CSI 300 fell marginally.
2. Dow closes nearly 500 points higher after Fed cuts rates
The Dow Jones Industrial Average jumped on Wednesday after the Federal Reserve decided to cut interest rates once again this year and as traders bet more easing was ahead next year. The 30-stock average gained 497.46 points, or 1.1%, to close at 48,057.75. The S&P 500 advanced 0.7% to end the day at 6,886.68 and briefly traded above its previous record closing high of 6,890.89. The Nasdaq Composite increased 0.3% to 23,654.16. The Fed approved another quarter percentage point cut at the conclusion of its two-day policy meeting. The cut, which marks its third in a row, brings the federal funds rate to a range of 3.5%-3.75%
3. Gold gains after Fed rate cut, silver hits all-time peak
Gold prices rose to around $4,230 per ounce on Thursday, gaining for a third consecutive session and approaching October levels, when they hit a record, following the FOMC’s expected rate cut. Fed Chair Jerome Powell indicated that the central bank is considering whether to slow, modestly cut, or make larger reductions in interest rates, with no plans to raise them. The US central bank also maintained its forecast for a single rate cut in 2026, though a slight change in its statement suggested greater uncertainty over the timing and size of future reductions. Meanwhile, geopolitical risks contributed to the metal’s safe-haven appeal, including the US interception of a sanctioned tanker near Venezuela and ongoing uncertainty over the Russia-Ukraine peace process. Silver climbed above $61.8 per ounce on Wednesday, extending a record rally
4. Oil extends gains after U.S. seizure of tanker off Venezuela
Oil rose for a second straight session on Thursday after the U.S. seized a sanctioned oil tanker off Venezuela’s coast, escalating tensions between the two countries and raising concern over further supply disruptions. Brent crude futures rose 27 cents, or 0.4%, to $62.48 a barrel by 0101 GMT, and U.S. West Texas Intermediate crude was at $58.79 a barrel, up 33 cents, or 0.6%. WTI crude oil is trading higher after news that the U.S. seized an oil tanker off Venezuela’s coast, IG market analyst Tony Sycamore said in a note, adding that reports of Ukraine striking a vessel from Russia’s shadow fleet also lent support.
5.Divided Fed approves third rate cut this year, sees slower pace ahead
A Federal Reserve split over where its priorities should lie cut its key interest rate Wednesday, but signalled a tougher road ahead for further reductions. Fulfilling expectations of a “hawkish cut,” the central bank’s Federal Open Market Committee lowered its key overnight borrowing rate by a quarter percentage point, putting it in a range between 3.5%-3.75%. However, the move carried caution flags about where policy is headed from here and featured “no” votes from three members, which hasn’t happened since September 2019. The 9-3 vote again featured hawkish and dovish dissents – Governor Stephen Miran favoured a steeper half-point reduction while regional Presidents Jeffrey Schmid of Kansas City and Austan Goolsbee of Chicago backed holding the line.
6. IMF’s Georgieva urges China to speed up ‘long-overdue’ shift away from relying on exports for growth
China needs to “accelerate” support for domestic consumption and reduce its reliance on exports for growth, International Monetary Fund Managing Director Kristalina Georgieva has said. “As the second-largest economy in the world, China is simply too big to generate much growth in exports and continuing to depend on export-like growth risks [and] furthering global trade tensions,” Georgieva told reporters Wednesday. She said the country has to “accelerate” its decades-long plan to shift away from relying on exports for growth, adding it would be “beneficial for China, it is beneficial for the world economy.” Her comments came as trade tensions between China and the U.S. have escalated, while Europe and countries like Mexico are increasingly wary of the volume of cars and other goods coming from China. China’s trade surplus reached a record of more than $1 trillion for the year as of November.
7. Trump says U.S. seized oil tanker off the coast of Venezuela
U.S. forces on Wednesday seized an oil tanker off the coast of Venezuela, President Donald Trump said. “We’ve just seized a tanker on the coast of Venezuela — a large tanker, very large, the largest one ever seized actually,” Trump said during a meeting in the Roosevelt Room at the White House. The president declined to provide information on who owned the tanker or its destination, but said it was “seized for a very good reason.” The tanker has been identified as the Skipper, according to Matt Smith, head U.S. analyst at energy consulting firm Kpler. Skipper is a Guyana-flagged “Very Large Crude Carrier,” or VLCC, that was loaded covertly with 1.1 million barrels of oil in mid-November, Smith told CNBC. Smith said the ship appeared to be headed for Cuba, though it has been stopped offshore Venezuela since it was loaded.
8.Swiss government says new 15% U.S. tariff ceiling retroactive to mid-November
The Swiss government said on Wednesday that a previously announced agreement to reduce U.S. tariffs on that country’s imports to a ceiling of 15% will apply retroactively to Nov. 14. The deal reached last month slashed the 39% tariff on imports from Switzerland that President Donald Trump imposed in August. The Swiss Federal Department of Economic Affairs, Education and Research said Wednesday that both countries can claim customs refunds from the effective date. “With the US tariff ceiling set at 15%, trade-weighted US tariffs on Switzerland will fall by around 10% on average, the department said in a statement. “This will significantly improve access to the US market for Swiss companies.” The United States was the top destination for Swiss exports in 2024.
9. Nvidia supplier SK Hynix eyes U.S. listing as it expands on the AI boom
South Korea’s SK Hynix on Wednesday confirmed that it is weighing a U.S. listing as the memory chipmaker’s valuation soars on global demand for artificial intelligence hardware. The company at the centre of the AI infrastructure boom said in a regulatory filing that it was “reviewing various measures to enhance corporate value, including a U.S. stock market listing utilizing treasury shares,” while noting that no final decision has been made. A U.S. listing would give American investors direct access to SK Hynix shares, which have surged nearly 230% so far this year in trading in Seoul on the back of strong AI demand. The Korea Exchange on Tuesday asked SK Hynix to address a Korea Economic Daily report that the company had received proposals to list about 2.4% of its shares as American depositary receipts (ADRs) backed by treasury stock.
10. Oracle plummets 11% on weak revenue, pushing down AI stocks like Nvidia and CoreWeave
Oracle shares sank 11% in extended trading on Wednesday after the database software maker reported lower quarterly revenue than expected despite booming demand for its artificial intelligence infrastructure. AI-related stocks were hit following the report with, chipmakers Nvidia and Advanced Micro Devices each dropping about 1% and cloud provider CoreWeave sliding more than 3%. With respect to guidance, Oracle called for $1.70 to $1.74 in adjusted earnings per share and 19% to 21% revenue growth for the fiscal third quarter. The LSEG consensus included $1.72 in earnings per share and $16.87 billion in revenue, implying 19% growth.
11. OpenAI warns new models pose ’high’ cybersecurity risk
OpenAI said on Wednesday the cyber capabilities of its artificial intelligence models are increasing and warned that upcoming models are likely to pose a “high” cybersecurity risk. The AI models might either develop working zero-day remote exploits against well-defended systems or assist with complex enterprise or industrial intrusion operations aimed at real-world effects, the ChatGPT maker said in a blog post. As capabilities advance, OpenAI said it is “investing in strengthening models for defensive cybersecurity tasks and creating tools that enable defenders to more easily perform workflows such as auditing code and patching vulnerabilities”. To counter cybersecurity risks, OpenAI said it is relying on a mix of access controls, infrastructure hardening, egress controls and monitoring.
12. US consumer spending on AmEx cards rose 9% over Thanksgiving holiday week, CEO says
American Express’ network recorded 9% growth in U.S. retail consumer spending around the key Thanksgiving holiday week, the credit card giant’s CEO Stephen Squeri said on Wednesday. For payments firms, the final weeks of the year are critical as they bring a predictable rise in shopping and travel activity. Promotions, gift buying and holiday trips usually push transaction volumes higher, which feeds directly into revenue growth. Concerns over whether this season would be softer because travel was hit by the longest U.S. government shutdown and broader economic uncertainty were eased by the latest data. “The week before Thanksgiving to up to Cyber Monday, we saw 9% growth in U.S. consumer retail spending, and 13% growth in Platinum retail U.S. consumer platinum spending, as well,” Squeri said at the Goldman Sachs U.S. Financial Services Conference in New York.