Thin holiday liquidity meets AI-led U.S. bounce, BOJ shockwaves, Venezuela oil tensions, and record-breaking gold
- Markets enter a holiday-shortened week with thin liquidity as a key backdrop, keeping attention tightly focused on late-week U.S. data—highlighted by a GDP reading. In U.S. equities, stock index futures started higher, led by technology as renewed AI enthusiasm returned, while investors monitored the upcoming data calendar for macro direction in the shortened week.
- In Europe, equities opened slightly softer, with low liquidity amplifying sector moves: technology and commodity-linked names were firmer (miners supported as gold and copper hit records), while consumer staples weighed. A Germany-related trade datapoint added a cautious note, with an IW study cited as showing German auto exports to the U.S. down 13.9% year-on-year over the first three quarters of 2025.
- In Japan, the Nikkei rose about 1.8%, helped by yen weakness boosting exporters, following the Bank of Japan’s rate hike to 0.75% and a sharp jump in Japanese government bond yields. Japanese officials also warned they may take “appropriate” action against excessive FX moves after a sharp, one-sided yen decline.
- Energy and gas flows remained in focus: U.S. natural gas futures eased toward a seven-week low on milder weather and near-record Lower 48 output, even as LNG feedgas flows stayed elevated. Australia announced a gas reservation policy that would require major LNG exporters to hold back 15–25% of production for domestic use starting in 2027.
- In oil, prices moved higher after reports the U.S. intercepted a tanker near Venezuela and stepped up actions against Venezuelan tankers, with Russia–Ukraine risks also cited in the same coverage. Gold extended its surge to fresh all-time highs (around $4,383/oz in one report and also described as breaking $4,400/oz elsewhere), supported by expectations of further Fed rate cuts, safe-haven demand, and a softer U.S. dollar, with ongoing central-bank buying also noted.

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