Daily Summary - Previous metals rebound, FOMC still see cuts

FOMC minutes indicate a greater priority on the labour market over inflation, although some members currently favour a longer pause. The overall tone is marginally dovish, as most members see prospects for rate cuts if inflation declines in line with expectations.

EURUSD is rebounding slightly following the minutes, while other major markets show no significant reaction despite the marginally dovish tone.

For many equity markets in Asia and Europe, today’s session was the last of the year. The German DAX cash index gained nearly 0.6%, while futures rose as much as 1%, trading near all-time highs.

JAP225 is gaining during the day, even though the cash index lost nearly 0.4%. JAP225 remains less than 4% away from its historical peaks.

UK100 is at all-time highs, moving closer to the 10,000-point mark. Tomorrow's session in the UK will be shortened.

US Wall Street index futures are extending the sell-off from the beginning of the week. US500 is losing slightly during the session; Wall Street will trade normally tomorrow.

EURUSD has been quite volatile during today’s session. However, the pair continues the sell-off that began on December 24, currently testing the 1.1750 level.

Spanish inflation for December fell to 2.9% y/y from 3.0%, against expectations of a decline to 2.8% y/y. Monthly inflation rose by 0.3% m/m.

The Chicago PMI for December rose to 43.5, against expectations of 40 and a previous level of 36.3. It is worth noting that this is a highly volatile indicator, so such a scale of rebound is not surprising given the improving economic outlook in the US.

Oil prices are rising as peace prospects in Ukraine fade following the Trump-Zelenskyy meeting and reports of drone attacks on a Russian presidential residence. Brent crude remains above $61, but lacks upward momentum.

A shift in nickel supply: prices rose 6% today following reports that Indonesia, the world's largest producer, plans to cut production by one-third to combat global oversupply.

A sharp hike in margin requirements on COMEX triggered a 15% correction on Monday (peak-to-trough), though long-term demand from the photovoltaic and AI sectors remains inelastic, suggesting no imminent demand destruction. Silver is recovering a large part of yesterday's pullback today.

Natural gas volatility: gas prices rose above $4/MMBtu due to strong inventory draws recently. While short-term temperature drops are indicated, January is expected to remain relatively warm.

Goldman Sachs, in its latest forecasts, points to further gold price increases to $4,900 and a continued bearish outlook for oil.