Global equity markets held close to record levels on Wednesday, rounding out a year dominated by artificial intelligence-driven gains, while precious metals continued a powerful rally as 2025 approaches its final days.
Risk appetite remained broadly intact, even as trading volumes thinned ahead of holiday closures across major financial centres.
Wall Street caps strong year with late rally
Overnight in the United States, the S&P 500 closed at a fresh record, with investors finally embracing a long-anticipated Santa Claus rally.
Stronger-than-expected economic data helped underpin sentiment, after figures showed the U.S. economy expanded at its fastest pace in two years during the third quarter.
While the upbeat growth numbers lifted equities, they also pressured bonds, reflecting reduced concern about an imminent slowdown.
European markets mixed amid holiday schedules
In Europe, trading conditions were muted as several exchanges operated on shortened schedules or remained closed.
The STOXX 600 index was flat in early dealings, while the UK’s FTSE 100 slipped 0.2%.
Markets in Amsterdam, Brussels and Paris were open for half-day sessions, while bourses in Germany and Italy were shut entirely.
U.S. equity futures, including Nasdaq and S&P 500 contracts, also hovered close to unchanged levels, reflecting limited liquidity.
Precious metals extend historic rally
Gold and silver stood out as the strongest performers as investors navigated thin year-end markets.
Spot gold traded around $4,489 per ounce after earlier touching a record $4,525, leaving the metal up roughly 72% for the year.
Silver climbed more than 1% to a fresh all-time high above $72 per ounce, putting it on track for an annual gain of nearly 150%, its strongest performance on record.
Growth outlook reassures investors
Market participants continued to digest the implications of the latest U.S. economic data.
Chris Zaccarelli, chief investment officer at Northlight Asset Management, described the third-quarter growth figures as “exceptional.”
“If the economy keeps producing at this level, then there isn’t as much need to worry about a slowing economy and concerns may actually flip back to the price-stability constraint,” he said.
Economists at Goldman Sachs struck a similarly optimistic tone in updated forecasts for 2026.
“Our 2026 global economic outlook argues for above-consensus growth and falling inflation next year,” said David Mericle, the bank’s chief U.S. economist.
Goldman expects global GDP growth of 2.8% next year, above consensus estimates, supported by easing financial conditions, reduced tariff drag and fiscal support.
Asian stocks advance as yen strengthens
Earlier in the session, Asian equities tracked Wall Street higher.
The broad Asia-Pacific index excluding Japan rose 0.4%, taking its gain for the year to 26%, the strongest performance since 2017.
Scott Chronert, a U.S. equity strategist at Citi, said the firm remains constructive on equities despite entering the fourth year of a bull market.
“Yet, high-performance dispersion within themes, sectors, and market cap is expected,” he noted.
In currency markets, the Japanese yen strengthened for a third consecutive session amid renewed speculation over official intervention.
The dollar slipped to around 155.8 yen, retreating from levels that previously prompted action from authorities.
The euro held near $1.18, capping a year in which the dollar has fallen roughly 10% against major peers.
Bonds and oil close out the year
U.S. Treasuries posted solid gains for the year following the resumption of Federal Reserve rate cuts.
Two-year yields hovered near 3.53%, down more than 70 basis points for 2025, while the 10-year yield traded just above 4.15%.
Oil prices were little changed but remained on course for a third straight annual decline.
Brent crude edged higher to around $62.45 per barrel, leaving it down roughly 16% for the year.