Weekly market news: 29 December 2025
Markets enter the final trading days of the year in holiday mode, with thin liquidity and limited economic data on the calendar.
With most investors already looking ahead to 2026, price action this week is likely to be driven more by technical factors, position-squaring and any unexpected headlines than by fundamentals.
As ever in the final week of the year, modest trades can have an outsized impact on markets.
Market snapshot this morning:
- Brent crude $62.0/bbl
- WTI $58.4/bbl
- Gold $4,170/oz
- US dollar index ~98.3 (DXY)
- GBP/USD ~1.32
- EUR/USD ~1.17
Why it matters
Oil: Prices are steady as trading volumes fall and attention shifts to early-January demand and OPEC+ guidance. Stable energy prices keep late-year inflation concerns muted.
Gold: Bullion remains elevated as investors maintain defensive exposure through year-end, a common pattern when liquidity is thin and uncertainty lingers.
FX and rates: The dollar is slightly softer into year-end, supporting sterling and the euro. Thin markets can exaggerate currency moves, even without major news.
Coming up this week
Monday 29 December
- Quiet start to the week with limited scheduled data – markets are dominated by year-end flows and rebalancing.
- Ongoing positioning as funds adjust exposures ahead of 2026.
Tuesday 30 December
- US housing and regional activity data (where scheduled) – typically low impact but watched for any surprises.
- Continued low liquidity across global markets.
Wednesday 31 December (New Year’s Eve)
- Early market closes in several regions – trading volumes fall sharply.
- Final portfolio adjustments for year-end reporting.
Thursday 1 January (New Year’s Day)
- UK, European, and many global markets closed.
Friday 2 January
- Markets reopen gradually – early positioning for the first full trading week of 2026 begins.
- Focus starts to shift to January data and central-bank expectations.
What you might’ve missed last week
- Markets remained range-bound as investors avoided taking new risk into year-end.
- Bond yields drifted slightly lower, reflecting expectations of slower growth and eventual rate cuts in 2026.
- Equity markets were largely unchanged, with gains in defensive sectors offset by profit-taking elsewhere.
Why it matters
This is a week where liquidity, not data, drives markets. Short-term moves are more likely to reflect positioning and technical factors than changes in the economic outlook.
For long-term investors, year-end volatility is usually noise rather than signal. Attention will quickly turn to January’s inflation and employment data, which will set the tone for markets – and central banks – in early 2026.
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