Morning Brew December 17 2025

Good morning,

The markets are reacting to significant geopolitical developments following President Donald Trump's recent post on Truth Socia: For the theft of our Assets, and many other reasons, including Terrorism, Drug Smuggling, and Human Trafficking, the Venezuelan Regime has been designated a FOREIGN TERRORIST ORGANIZATION." He further stated, "Therefore, today, I am ordering A TOTAL AND COMPLETE BLOCKADE OF ALL SANCTIONED OIL TANKERS going into, and out of, Venezuela." In response, oil prices rose over 1% in Asian trade after a previous decline, while the USD strengthened and precious metals soared.

U.S. equities finished lower yesterday as investors shifted away from artificial intelligence and technology stocks ahead of key economic data releases. The S&P 500 declined 0.2% to 6,816.51, while the tech-heavy Nasdaq Composite dropped 0.6% to 23,057.41. The Dow Jones Industrial Average also saw a slight decrease of 0.1% to 48,416.56. Technology was the weakest sector, falling 1%, whereas Healthcare outperformed with a 1.3% gain. Oil prices hit multi-year lows around $55 per barrel, which put pressure on energy stocks.

European indices also closed broadly lower. The STOXX 600 fell 0.4% and the Euro STOXX 50 dropped 0.66%. Major national indices followed suit: Germany's DAX lost 0.59%, the UK's FTSE 100 dipped 0.68%, and France's CAC 40 shed 0.23%. Defense stocks were among the laggards due to resurfacing peace-talk headlines, while investors remained cautious ahead of the European Central Bank's final policy meeting of the year. In a political U-turn, the EU has lifted the ban on the production of combustion engines from 2035.

In corporate news:

• Warner Bros is likely to reject a $108.4 billion bid from Paramount, opting to back Netflix in the bidding war, according to sources.
• Comcast shares rose 5.4% after CNBC financial journalist David Faber speculated about potential involvement by an activist investor.
• MetaX Integrated Circuits shares surged 700% on their market debut on Wednesday.

Currency and commodity markets are seeing notable movements: the USD Index increased to 98.60, while EUR/USD fell to 1.1700, GBP/USD to 1.3340, and USD/JPY is trading at 155.40. Precious metals are rising sharply, with silver at 65.75, gold at 4320, and platinum at 1911.

With the situation in Venezuela escalating and potential de-escalation in Ukraine, today's market movements may be driven by unexpected events, particularly in the oil sector. Although there is limited economic data scheduled for release, the day holds significant potential for surprises and market volatility.

Wednesday December 17

Japan Trade, UK CPI, DE IFO, EU Infaltion,

Speakers: Waller, Bostic, Williams,

Thurday December 18

Sweden, Norway Denmark , EU & UK  Rate Decision US CPI.

Speakers: Lagarde

Friday December 19

Japan Rate decision UK Retail Sales, US PCE, University of Michigan