MARKET WRAPS
Stocks:
European shares were largely up on the last full trading day of the year as precious metals rebounded and ahead of the Federal Reserve's meeting minutes.
Silver futures jumped by around 5% early Tuesday after the precious metal's biggest one-day fall in more than four years on Monday . They had traded above $80 an ounce in recent days. Gold contracts saw smaller gains but were also recovering from Monday's fall.
Investors are now awaiting the Fed's latest meeting minutes that could provide insight into policymakers' disagreements and how those may affect rates next year. The Fed cut rates by 25 basis points on Dec. 10.
The minutes, which will be released at 1900 GMT, come amid an uncertain outlook with official U.S. data having been delayed after the recent government shutdown.
The U.S. jobs market looks weak, though inflation pressures continue and the economy remains solid. U.S. money markets currently price in two rate cuts next year, according to LSEG.
U.S. stock and bond markets will wrap up the year on Wednesday, then close on Thursday in observance of New Year's Day.
Shares on the Move
London's miners rose in opening trade as precious metal prices stabilized after declines on Monday.
Stocks to Watch
A merger between GSK and AstraZeneca could be a possibility given incoming GSK CEO Luke Miels's strong background and history with Astra CEO Pascal Soriot, Baader Europe said.
U.S. Markets:
Stock futures were muted on Tuesday after indexes dropped on Monday, led by big technology stocks, including Oracle, Nvidia and Tesla.
Forex:
The euro remained steady versus the dollar , showing little reaction after data showed Spanish inflation eased in December.
The dollar traded steady ahead of the Fed's latest meeting minutes.
Sterling traded steady against the dollar and euro in a quiet holiday-shortened week. With little on the economic calendar this week, sterling is left to trade on broader risk appetite.
Bonds:
Eurozone government-bond yields turn higher after most of the region's bond yields fell to three-week lows on Monday.
Yields on Treasurys were steady.
Energy:
Oil traded up slightly as geopolitical tensions continue to support prices.
Metals:
Gold prices stabilized after retreating Monday. In the near term, precious metals could see more volatile price action , with whipsaw moves likely to be driven by positioning and thin liquidity rather than a fundamental narrative, Sucden Financial.
Silver
Silver prices rose after falling heavily Monday. Silver prices have soared in 2025 and speculative trading has added to its momentum.
Copper
Copper was higher in early trading after giving up some gains overnight. Prices have been surging in recent months amid expectations of supply risks.
Iron
Iron ore edged higher in early trade amid expectations that Chinese steel mills will restock ahead of the holidays. However, iron ore's fundamentals remain weak as overseas shipments have been robust at year end , sending overall supply to a high level, Baocheng Futures said.
EMEA HEADLINES
Octopus Energy to Spin Off AI Arm Kraken at $8.65 Billion Valuation
SYDNEY-British renewable-energy startup Octopus Energy will spin off utility management platform Kraken Technologies at a valuation of $8.65 billion.
Octopus raised $1 billion in its first stand-alone funding round for Kraken, an artificial-intelligence platform used by global energy retailers, with more than 70 million customers between them.
Citigroup to Sell Remaining Business Operating in Russia
Citigroup said its board approved a plan to sell AO Citibank, which conducts the company's remaining business in Russia, to Renaissance Capital.
Citigroup said its remaining business in Russia will be reported as "held for sale," as of the fourth quarter of this year. The deal is expected to sign and close in the first half of next year, the company added.
Trump Threatens New Military Action With Israel Against Iran
WEST PALM BEACH, Fla.-President Trump sided firmly with Israeli Prime Minister Benjamin Netanyahu on Monday, threatening new attacks against Iran, blaming Hamas for the stalled Gaza cease-fire, and calling again for Netanyahu to receive a pardon.
"I'm not concerned about anything that Israel is doing," Trump said during a joint news conference after their talks at Mar-a-Lago. But the president hinted at disagreements, calling Netanyahu a "strong man" who "can be very difficult on occasion."
Saudi Arabia Bombs Yemeni Port City Over Weapons Shipment From U.A.E.
The Saudi military said its air force bombed weapons shipments arriving at a Yemeni port city from the United Arab Emirates, escalating tensions between two oil-rich Persian Gulf allies that are increasingly torn over conflicting goals in Yemen's ongoing civil war.
The airstrikes, which came early Tuesday morning local time, mark the second time in a week that the Saudis have struck the Southern Transitional Council, a Yemeni militia backed by the U.A.E. that has made significant gains against Riyadh-supported fighters this month.
GLOBAL NEWS
Fed Minutes Could Show How High the Bar Is for More Rate Cuts
Federal Reserve officials agreed to cut interest rates for a third and final time in 2025 at their meeting this month, but there were growing divisions over where policy heads next. That state of affairs, plus a confusing economic landscape, has put the focus on the minutes from the gathering, due to be made public on Tuesday.
Minutes from the Dec. 9-10 meeting, due out at 2 p.m. Eastern, cover the decision in favor of a quarter-point cut that lowered the target range for the federal-funds rate to 3.50%-3.75%. The record is likely to show a difficult decision as the committee weighed conflicting signals from inflation, the labor market, and President Donald Trump's tariff policy.
Trump eyes January for announcement of Powell replacement as he renews attacks on Fed chief
President Donald Trump on Monday said he's looking at next month for the announcement of a candidate to replace Federal Reserve Chair Jerome Powell and revived a threat to sue over renovations at the central bank's headquarters.
"January, sometime," Trump said in response to a question about timing for his pick for a new leader of the Fed. The president and Israeli Prime Minister Benjamin Netanyahu were meeting at Trump's Mar-a-Lago estate in Florida, and the remarks came at a news conference.
A Dealmaking Frenzy Is Reshaping the Booming Wealth-Management Business
Mark Armbruster used to know most of the other owners of wealth-management firms in the Rochester, N.Y., area. Now, a spate of recent dealmaking has resulted in many competitors being bought by out-of-towners-including at least four in the past year alone.
At 53 years old, Armbruster isn't feeling pressure to take advantage of the paydays his rivals are landing. He hopes his children will one day take over Armbruster Capital Management, which manages $1 billion for what he calls "the millionaire next door." Yet he still gets a steady stream of emails and calls from would-be buyers.
Small-Cap Problems Dim a Bright Year for Nasdaq IPOs
In a stock market eager for initial public offerings, Nasdaq says that it once more led the U.S. in IPOs this year. New deals like CoreWeave, Medline, and SailPoint joined the exchange's established tech names to lift the Nasdaq Composite Index 22%, with just a few trading days left in 2025.
But Nasdaq's IPO laurels were blighted by a swarm of tiny offerings that left investors with steep losses and prompted investigations by regulators concerned over potential pump-and-dump frauds.
Saudi Arabia Bombs Yemeni Port City Over Weapons Shipment From U.A.E.
The Saudi military said its air force bombed weapons shipments arriving at a Yemeni port city from the United Arab Emirates, escalating tensions between two oil-rich Persian Gulf allies that are increasingly torn over conflicting goals in Yemen's ongoing civil war.
The airstrikes, which came early Tuesday morning local time, mark the second time in a week that the Saudis have struck the Southern Transitional Council, a Yemeni militia backed by the U.A.E. that has made significant gains against Riyadh-supported fighters this month.
Trump Threatens New Military Action With Israel Against Iran
WEST PALM BEACH, Fla.-President Trump sided firmly with Israeli Prime Minister Benjamin Netanyahu on Monday, threatening new attacks against Iran, blaming Hamas for the stalled Gaza cease-fire, and calling again for Netanyahu to receive a pardon.
"I'm not concerned about anything that Israel is doing," Trump said during a joint news conference after their talks at Mar-a-Lago. But the president hinted at disagreements, calling Netanyahu a "strong man" who "can be very difficult on occasion."
Growing Iran Protests Put New Pressure on an Embattled Regime
Protests over Iran's falling currency grew as they spread across Iran, increasing the pressure on a government already struggling with an economic crisis and shattered defenses after a war with Israel.
Footage posted on social media shows protests Monday at an upmarket mall near Tehran's sprawling bazaar. In one video, demonstrators can be heard chanting "azadi," the Farsi word for freedom. Another shows security forces in riot gear confronting the protesters and firing tear gas. The footage was verified by Storyful, which is owned by News Corp, the parent company of The Wall Street Journal.
Chinese Military Drills Send 'Stern Warning' After U.S. Arms Sales to Taiwan
TAIPEI-China launched major military exercises in the waters and airspace around Taiwan Monday in what it called a "stern warning" against outside interference in Chinese affairs, as tensions grow with the U.S. and Japan over the security of the island.
(MORE TO FOLLOW) Dow Jones Newswires
12-30-25 0516ET
