Global stock markets have maintained their momentum, trading near record-high levels as the year-end rally continues. The MSCI All-Country World Index, a comprehensive benchmark for global equity performance, rose 0.1% on Monday, following a 1.4% gain last week that pushed it to an all-time high. This upward trend highlights the anticipated year-end rally, which has been fueled by improving investor sentiment and strong performance across multiple sectors.
Precious Metals See Volatility
Silver prices hit a historic milestone, breaching the $80 per ounce mark for the first time. However, the surge was followed by sharp fluctuations, reflecting structural imbalances between supply and demand. Gold prices also declined in tandem. Analysts attribute silver’s dramatic rise to industrial demand driven by sectors like solar panels, electric vehicles, artificial intelligence data centers, and electronics, combined with dwindling inventories. Elon Musk commented on the issue, stating, “This is not good. Silver is critical for various industrial processes.”
Despite the volatility, precious metals have emerged as one of the hottest investment areas in recent months, supported by central bank purchases, inflows into exchange-traded funds (ETFs), and three consecutive Federal Reserve rate cuts. Lower borrowing costs have also bolstered the appeal of non-yielding assets like silver and gold. Traders now anticipate further rate cuts in 2026, which could sustain interest in these commodities.
Asian and U.S. Markets
Asian stocks rose 0.5%, led by technology and mining sectors. Meanwhile, U.S. futures dipped slightly during Asian trading hours after the S&P 500 closed Friday near a record high. Notably, copper prices surged over 5% in London, marking an unprecedented level, as the demand for industrial metals continues to grow.
Conversely, Chinese equities underperformed the broader Asian index. Data released over the weekend revealed that industrial profits in China fell for the second consecutive month in November, reflecting weak domestic demand and ongoing deflationary pressures. In response, China has pledged to expand fiscal spending in 2026 to support growth amid challenging external conditions.
Geopolitical Developments and Energy Markets
Geopolitical tensions remain a focal point for investors. Chinese and Taiwanese defense stocks gained after Beijing announced military drills near Taiwan. Meanwhile, U.S. President Donald Trump reported “significant progress” in peace talks with Ukrainian President Volodymyr Zelensky, though no specific timeline was provided.
In energy markets, oil prices rose on expectations of stronger Chinese demand in 2026. Despite the rebound, oil is set to log its fifth consecutive monthly decline in December—the longest losing streak in over two years. Bitcoin also gained, while the U.S. dollar weakened slightly.
The Role of AI and Interest Rates in 2026
Global equities have climbed approximately 22% in 2025, marking the third consecutive year of gains and the largest annual increase since 2019. Analysts credit artificial intelligence trends as the primary driver of this year’s rally, alongside shifts in U.S. interest rate policy. Looking ahead to 2026, the Federal Reserve’s monetary decisions and the expanding influence of AI are expected to play critical roles in shaping market performance.
Market participants are eagerly awaiting the release of the Federal Reserve’s December meeting minutes this week. Analysts hope to gain insights into the central bank’s discussions on risk management and the timing of future monetary easing.
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