- In European morning trading, the recent overnight rally from Thursday in Wall Street futures is being continued. The US100 is up 0.2%, while the US500 remains close to Tuesday’s close.
- Today’s gains extend the rebound in technology stocks, which saw significant gains during Tuesday’s session.
- It is worth noting that most markets remain closed today, but Wall Street will operate as normal.
- The current market volatility suggests that the Santa Claus Rally and January Effect could still be in play. Both the US100 and US500 are testing historic highs.
- The JAP225 is up 0.5% this morning, potentially linked to comments from BoJ’s Ueda. Conversely, the CH50 from China is down 0.2%.
- Ueda, the BoJ governor, indicated that inflation risks remain elevated. He stated that interest rates will remain below neutral to ensure inflation converges towards the 2% target. He also suggested that if the economy performs as forecast, the BoJ will raise rates.
- During last week’s meeting, Ueda indicated that March’s wage negotiation data would be crucial for decision-making. This implies that the BoJ will not raise rates in January.
- In the currency market, there is a slight move away from the dollar, but EURUSD remains below 1.0400. The yen is also weakening.
- The World Bank estimates that China’s growth reached 4.9% this year, but forecasts a slowdown to 4.5% next year.
- Chinese lawmakers voted on Wednesday to adopt a value-added tax (VAT) law, marking significant progress in enforcing the principle of taxation. This law is set to come into effect on 1 January 2026.
- The National People's Congress is scheduled for 5 March, where further measures to stimulate the economy may be presented.
- Oil is rebounding during today’s session on hopes of a Chinese recovery in the coming months. Brent crude is up 0.25%, trading slightly above $73 a barrel.
- Natural gas, after strong gains and testing levels around $3.5/MMBTU, is declining today. Although the turn of December and January is expected to be mild, a minor cold snap is forecast to return to the eastern US states from 2 January.
- Gold is gaining this morning, benefiting from a slightly weaker dollar. Gold is up 0.4%, trading marginally below $2,630 an ounce.
- Bitcoin is down 0.6% this morning, 26 December, and is trading below 98,000.
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
