Global market overview
Here’s a snapshot of global market performance across major regions.
Asian markets under pressure
Asian equities mostly declined as technology shares extended losses amid stretched AI valuations and caution ahead of key interest rate decisions. Japanese markets weakened on expectations of a hawkish Bank of Japan, while regional sentiment mirrored Wall Street’s downturn.
European equities rebound
European stocks posted modest gains, with the STOXX 50 up 0.4% and STOXX 600 rising 0.3%. Banking and financial shares led the advance, including HSBC, UBS, and Deutsche Bank, while defence and energy shares also gained. Luxury names such as LVMH, Hermès, and L’Oréal retreated ahead of central bank announcements.
Currency and commodities update
The U.S. Dollar Index held near 98.4, supported by expectations of at least one Fed rate cut next year. The euro traded at 1.1744, reflecting dollar strength. Mixed U.S. labour market reports did little to shift expectations.
Oil prices continued to rise in Asian trading following Trump’s blockade order, with additional support from reports of tougher U.S. sanctions on Russia’s energy sector. Gains came despite U.S. data showing a smaller-than-expected fall in crude inventories.
Corporate highlights
Micron Technology
Micron forecast second-quarter profits nearly double Wall Street estimates, driven by strong AI-related demand for high-bandwidth memory chips. The company expects $18.7 billion in revenue and plans increased capital expenditure in 2026.
Oracle
Oracle confirmed that talks for its Michigan data centre project remain on track, despite earlier concerns. The project, part of its Stargate AI initiative with OpenAI, is scheduled to begin construction in early 2026.
Blue Owl Capital is excluded from financing discussions, while Blackstone has held talks as a potential partner, though no deal is confirmed.
Warner Bros Discovery
Warner Bros Discovery rejected Paramount Skydance’s $108.4 billion hostile bid, citing financing risks, high debt, and operational concerns.
The company favours Netflix’s $27.75-per-share cash-and-stock offer. Paramount claims its all-cash bid offers superior value. Shares fell as the takeover battle continues.
OpenAI
OpenAI is reportedly seeking to raise up to $100 billion, potentially valuing the company near $1 trillion ahead of a future IPO, as AI demand continues to surge.
Other movers
- Coinbase expanded into equity trading and prediction markets through a partnership with Kalshi.
- Instacart shares fell after the FTC launched an investigation into AI-driven pricing practices, with reports of price differences of up to 23% for identical groceries.
- Morgan Stanley reaffirmed Microsoft as its top pick, citing strong AI growth potential and margin expansion.
- Apple received a price target upgrade to $315, supported by robust iPhone demand despite memory cost pressures.
- Robinhood initiated coverage at Buy by Truist, highlighting product expansion and strong growth potential.
- Palo Alto Networks was upgraded by JPMorgan with a bullish outlook on cybersecurity growth.
Lululemon
Activist investor Elliott Management acquired over $1 billion in Lululemon shares and is considering Jane Nielsen, ex-Ralph Lauren executive, as CEO.
Following Calvin McDonald’s January departure, the company faces potential board disputes amid declining market share.
Additional U.S. policy updates
President Trump announced a $1,776 cash payment for eligible U.S. military personnel ahead of Christmas.
He also signalled plans to appoint a Federal Reserve chair who favours much lower interest rates, promised sweeping housing reforms next year, and defended his economic record ahead of closely watched U.S. inflation data.
Upcoming events
Key economic releases today include:
- European Central Bank and Bank of England policy decisions
- U.S. CPI inflation report
- Initial jobless claims
- Philadelphia Fed Manufacturing Index
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