Asia-Pacific markets fell on the holiday-shortened and final trading day of the year. Markets in Hong Kong and Australia will close early for the holidays, while Japan and South Korea are shut for the day. Australia’s S&P/ASX 200 fell 0.17%. Hong Kong’s Hang Seng index declined 0.42%, while the mainland CSI 300 was flat. China’s economy ended the year on a slightly less gloomy note, as factory activity expanded in December for the first time since March, beating expectations, according to official data released Wednesday.
The S&P 500 fell modestly on Tuesday, notching a third consecutive losing session. The broad market S&P 500 lost 0.14% and closed at 6,896.24, while the Nasdaq Composite slipped 0.24% and settled at 23,419.08. The Dow Jones Industrial Average shed 94.87 points, or 0.20%, and ended at 48,367.06. The three major averages have slumped to start the week, dragged down by losses in tech. Nvidia posted back-to-back losing sessions, as did fellow AI play Palantir Technologies
Gold prices rose above $4,360 per ounce on the final day of 2025, marking a year of exceptional gains and positioning the precious metal for its strongest annual performance in more than four decades. Bullion has surged 66% this year, a rally that accelerated in late April following President Donald Trump’s global tariff rollout. The momentum has been further supported by persistent geopolitical tensions, US interest rate cuts, robust central bank purchases, and rising holdings in gold-backed ETFs. Meanwhile, the Federal Reserve’s December meeting minutes, released on Tuesday, showed that most would support rate cuts if inflation continues to fall, though they remained divided on the timing and magnitude of potential reductions.
WTI crude oil futures hovered at $57.9 per barrel on the final day of 2025, heading for the steepest annual decline since 2020 on concerns over a supply glut. Investors are now monitoring an upcoming OPEC+ meeting, geopolitical developments, and a US inventory report. OPEC+ is expected to maintain its plan to pause supply increases in Q1 2026 when it meets on Sunday. Geopolitical factors continue to support prices, including US blockade of Venezuelan oil shipments, fresh instability in the Middle East, and lingering uncertainty over a Russia–Ukraine peace deal. Meanwhile, the API estimated that US crude inventories rose by 1.7 million barrels last week, the largest build since mid-November if confirmed later today. WTI is down 1% so far in December, on track for a fifth monthly loss, and has fallen nearly 20% for the year. The prospect of a large surplus amid higher output from OPEC+ and non-OPEC producers, alongside subdued demand growth, gradually pushed prices lower in 2025.
The Federal Reserve on Tuesday released minutes from its highly divisive meeting earlier this month, which concluded with a vote to lower interest rates again that appeared to be an even closer call than the final vote indicated. Officials expressed a variety of opinions during the Dec. 9-10 meeting, according to the summary provided a day ahead of its customary release due to the New Year’s holiday. Ultimately, the Federal Open Market Committee approved a quarter-percentage point cut by a 9-3 vote, the most dissents since 2019, as officials debated the need to support the labor market against concerns about inflation. The move lowered the key funds rate to a range of 3.5%-3.75%. “Most participants judged that further downward adjustments to the target range for the federal funds rate would likely be appropriate if inflation declined over time as expected,” the document said.
China’s economy ended the year on a slightly less gloomy note, as factory activity expanded in December for the first time since March, beating expectations, according to official data released Wednesday. The official manufacturing purchasing managers index rose to 50.1 in December, above the 49.2 forecast by economists polled by Reuters, and higher than 49.2 in November. A reading above 50 indicates expansion. The composite PMI, a broader measure that tracks activity across manufacturing and services, climbed to 50.7 from 49.7 in November, pointing to broader improvement across the economy. China’s non-manufacturing PMI, which covers services and construction, increased to 50.2 from 49.5 in November. Huo Lihui, chief statistician from China’s National Bureau of Statistics, said that new orders rose in December, signalling a “significant expansion” in both production and demand in manufacturing.
China fired rockets into waters off Taiwan on Tuesday, showcased new assault ships and dismissed prospects of U.S. and allied intervention to block any future attack by Beijing to take control of the island in its most extensive war games to date. As part of drills rehearsing a blockade, China’s Eastern Theatre Command conducted 10 hours of live-fire exercises, launching rockets into waters to the north and south of the democratically governed island. Chinese naval and air force units also simulated strikes on maritime and aerial targets and carried out anti-submarine drills around the island, while state media released images touting Beijing’s technological and military superiority and its ability to take Taiwan by force if necessary.
The U.S. on Tuesday announced sanctions on a group of 10 individuals and entities based in Iran and Venezuela that are allegedly linked to the weapons trade between the two countries. Those targeted include a Venezuelan company, Empresa Aeronautica Nacional, which is allegedly linked to millions of dollars of Iranian drone sales to Venezuela. The sanctions also target three Iran-based individuals who are allegedly part of an effort to procure chemicals used for ballistic missiles, according to the Treasury Department’s Office of Foreign Assets Control. “Iran’s ongoing provision of conventional weapons to Caracas constitutes a threat to U.S. interests in the Western Hemisphere, including the Homeland, and the United States will use all available measures to prevent this trade,” the Treasury Department said in a statement.
Russia and Ukraine continued to trade barbs Tuesday over an alleged drone attack on one of Russian President Vladimir Putin’s official residences. Ukraine has denied that it carried out any such strike, describing it as a “complete fabrication,” but the Kremlin said that its military stands ready to retaliate. Russia’s foreign minister, Sergey Lavrov, on Monday alleged that Ukraine had fired 91 drones at Putin’s official residence in the Novgorod region, located between Moscow and St Petersburg. Lavrov said that the drones, allegedly launched between Sunday night and Monday morning, had been destroyed by air defenses and that no casualties had been reported. It’s not clear where Putin was at the time of the alleged incident, and Lavrov provided no further details. Ukraine denied the claims and instead accused Moscow of trying to undermine peace talks.
Copper is on track for its biggest annual price rise in more than a decade, driven by supply disruptions, a weakening U.S. dollar, improving expectations for Chinese economic growth — and blockbuster spending on artificial intelligence. Analysts say the red metal’s rally could continue next year, particularly amid supply fears and a rapidly expanding global data center footprint. Three-month copper prices on the London Metal Exchange, or LME, traded up 1.5% at $12,405 per metric ton on Tuesday, paring recent gains after notching a record high of $12,960 in the previous session. The benchmark contract, which is up around 41% this year, is on pace for its best year since 2009, when it gained more than 140% as countries emerged from the global financial crisis.
Nike stock rose 1.6% in after-hours trading Tuesday following disclosure that CEO Elliott Hill purchased around $1 million worth of company shares. According to a regulatory filing with the Securities and Exchange Commission, Hill acquired 16,388 shares at an average price of $61.10 per share on December 29. The transaction increased the chief executive’s direct holdings to 241,587 shares. The purchase comes as Nike shares have struggled in recent months amid challenging market conditions. Hill’s investment represents a significant personal financial commitment to the athletic apparel giant he leads. The filing also revealed separate transactions by Nike’s Chairman Emeritus Philip Knight, who acquired 4.5 million Class A convertible shares through a private distribution from Swoosh, LLC. Knight’s total beneficial ownership stands at over 8.3 million Class B common shares directly, with additional indirect holdings.
Novo Nordisk and Eli Lilly are lowering prices of their top-selling obesity drugs Wegovy and Mounjaro in China, according to the Danish drugmaker and Chinese drug suppliers. Novo did not give details on the new prices, but media outlet Yicai reported earlier that list prices for the two highest dosages of Wegovy were cut by 48% to 987 yuan ($141) and 1,284 yuan per month respectively in some Chinese provinces. "We can confirm that we are adjusting our prices of Wegovy in China," the Danish firm told Reuters in a statement. "We believe this pricing adjustment in China will further help alleviate the treatment burden for patients and improve their quality of life." Lilly did not immediately respond to a request for comment.