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Posted December 5, 2025 at 10:00 am
Global stocks rallied for a second week as optimism about a Federal Reserve rate cut sent the US dollar lower and fueled record highs for gold and copper.
Market cheer is rooted in the growing expectation that the Fed will trim rates soon, with traders putting a 90% chance on a 0.25 percentage point cut next week. A softer dollar—down 0.5% for the week—made gold more appealing, nudging it to $4,221 an ounce, while copper climbed to a record $11,705 per ton after Citi flagged tighter supplies and a bullish outlook. European mining stocks got a particular boost from copper’s surge. Still, there’s some hesitation among Fed officials about moving too fast, and sharp contrasts are emerging globally: in Japan, the central bank is signaling a rare rate hike to 0.75%—its highest since 1995—lifting bond yields, strengthening the yen, and pressuring the Nikkei index.
For markets: Central banks drive new market swings.
Diverging policies from the Fed and the Bank of Japan are stirring up fresh volatility across global assets. Falling US rates are sending metals and stocks higher—especially in the mining sector—while Japan’s hawkish pivot is flipping the script in its bond and currency markets and weighing on the Nikkei. Investors are bracing for rockier conditions as these central bank moves disrupt familiar trends.
The bigger picture: Global playbooks are getting a rewrite.
These opposing central bank strategies are creating ripple effects worldwide. With copper and gold breaking records and European equities rising, investors are watching how big economies thread the needle between fighting inflation and maintaining growth. Expect more policy-driven swings as markets adjust to this new era of central bank divergence.
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Originally Posted on December 5, 2025 – Investors Bet On Fed Cuts As Global Shares Climb
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