US Equities (Nasdaq/S&P) Wall Street rallied on December 18, driven by a tech-led rebound and a softer-than-expected November CPI print (2.7%). Micron surged on a strong AI-demand outlook, boosting the semiconductor sector. However, Reuters noted data-quality caveats regarding the CPI release due to the recent government shutdown. Major US exchanges confirmed they will remain open on December 24 and 26.

Central Banks (BOJ & ECB)

• Japan: The Bank of Japan raised its policy rate to 0.75%—the highest level in nearly 30 years. The yen initially slipped as investors parsed Governor Ueda’s guidance for future moves.
• Europe: The ECB kept rates unchanged at 2%, resulting in choppy but slightly positive trading for the DAX as markets digested the “on-hold” signal.

Commodities

• Oil: Brent crude is on track for a second weekly decline, pressured by reduced supply fears amid optimism surrounding Russia-Ukraine peace talks, which outweighed concerns over the US blockade of Venezuelan tankers.
• Natural Gas: The EIA reported a 167 Bcf storage withdrawal. Prices are supported by near-record feedgas flows to LNG export plants and weather-driven demand.

Gold: Prices edged lower as the softer US inflation data and a firmer dollar reduced short-term demand for inflation hedges