Latest Finance-Economy News
Federal Reserve Cuts Rates by 25bps with Dissent
The FOMC reduced policy rates by 25 basis points in its third consecutive cut, with three dissenting votes: one for 50bps cut and two to hold steady. The dot plot projects only one cut in 2026 amid improved growth (1.8% to 2.4%) and faster inflation moderation.
Risk assets rallied on policy clarity and economic resilience.
Silver Surges to Historic Highs Above $64 per Ounce
Silver prices reached record highs exceeding $64 per ounce, boosting markets amid Fed rate cuts and global uncertainties. This rally contrasts with scrutiny on AI sector valuations after Oracle and Broadcom disappointments.
Precious metals gained as investors sought safe havens.
China Faces Persistent Deflation Despite CPI Gains
China's November CPI rose 0.7% YoY from 0.2%, driven by food prices, but PPI fell 2.2% YoY for the 38th month amid weak demand. Politburo prioritizes domestic demand for 2026 with 'moderately loose' policies, avoiding export reliance.
Intense price competition signals ongoing deflation risks.
US Nonfarm Payrolls Report Due December 16 with Modest Gains Forecast
The delayed NFP for October and November 2025 releases tomorrow, forecasting ~50,000 jobs added in November amid labor moderation. Unemployment expected stable near 4%; data critical for Fed's data-dependent policy and rate cut expectations.
Private payrolls like ADP showed November contraction, with rising jobless claims.
US Trade Deficit Narrows to $52.8 Billion in September
The goods and services trade deficit fell from $59.3B in August to $52.8B in September as exports outpaced imports. Goods deficit dropped $7.1B to $79.0B, while services surplus dipped $0.6B to $26.2B.
Data reflects post-shutdown adjustments by BEA.
Credit Downgrades Hit 24-Week High
S&P Global reports corporate credit downgrades reached a 24-week peak this week, signaling rising credit risks. This amid global economic shifts and central bank actions.
Investors monitor for broader implications on debt markets.
Australia's RBA Holds Rates Amid Inflation Upside Risks
Reserve Bank of Australia maintained rates for third meeting, citing persistent inflation despite new CPI data. Board focused on potential rate hikes in 2026 rather than cuts.
Easing cycle appears paused.
US Q3 GDP Initial Estimate Set for December 23
BEA schedules Q3 2025 GDP advance estimate and corporate profits release on Dec 23, delayed by government shutdown. This replaces second estimate originally due November.
Key for assessing post-shutdown economic momentum.
Business Investment Strengthens with Factory Orders Up
Core capital goods orders and shipments rose 0.9% in September, factory orders up 0.2%. Signals robust business investment amid industrial recovery.
Positive for manufacturing sector outlook.
Upcoming Central Bank Decisions: Europe, UK, Japan
Central banks in Europe, UK, and Japan prepare rate decisions this week, alongside Chinese data and US jobs report. Policies to shape global trajectories amid Fed moves.
Markets focus on coordinated responses to inflation and growth.
Rumored Federal $2000 Deposits for December Circulate
Speculation grows on proposed $2000 federal deposits timed for year-end budget and holidays, though unconfirmed. Analysts note policy appeal but no official rollout.
Beneficiaries urged to verify eligibility rules.