US equity markets moved to fresh record highs as investors assessed the latest labour market data and its implications for monetary policy. December employment figures showed job creation slowing modestly, reinforcing expectations that the US economy is transitioning toward a more balanced growth phase rather than a sharp downturn. At the same time, persistent inflation expectations and renewed geopolitical risks continue to influence sentiment across asset classes.

As 2026 begins, global financial markets are once again being shaped by rising geopolitical risk, shifting monetary policy expectations and renewed volatility across commodities and currencies. In this week‘s Market Buzz, ETO Markets reviews…

Following the Federal Reserve’s 25bps rate cut, market attention has once again turned to gold. In 2025, gold rose from $2,600 to a historic high of $4,200, delivering an annual gain of over 54% — the strongest performance since 1979.

ETO Markets Weekly Recap (24 Nov 2025): U.S. Stocks Rise as December Rate-Cut Odds Hit 70% Amid Weak Consumer Confidence and Slowing PMI. US equity markets advanced as investors reacted positively to comments from Federal Reserve President John Williams, who suggested that monetary policy may soon shift toward a more neutral stance. This helped push the implied probability of a December rate cut back up to nearly 70%, lifting market sentiment despite continued signs of strain across the broader economy.

U.S. equity markets managed to post modest gains overnight as investor sentiment improved on signs that Congress is making progress toward resolving the government shutdown. Despite this, the prolonged political impasse continues to cast a shadow over economic confidence. The shutdown has now reached Day 36, the longest in U.S. history, with an estimated economic cost of USD 14 billion in lost productivity, delayed spending, and stalled federal operations. The impact is beginning to filter through to household sentiment and labour markets.