Zürcher Nachrichten - Stocks drop at end of record year for markets

London's benchmark FTSE 100 index edged down 0.1 percent in morning deals, having reached a record-high Tuesday close to 10,000 points.

That put it on course for an annual gain of more than 20 percent, thanks to interest-rate cuts from the Bank of England as well as US Federal Reserve.

Across the globe, stock markets have struck record highs and enjoyed double-digit gains in 2025.

"To push meaningfully higher in 2026, equities will need confirmation that the Fed can deliver at least the two rate cuts still priced by the market, with growth unimpeded," noted Stephen Innes of SPI Asset Management.

The Federal Reserve's monetary easing in the second half of this year has been a key driver of the global market improvements, compounding a surge in the tech sector on the back of the vast amounts of cash pumped into AI.

Minutes of the Fed's policy meeting in December, which were released on Tuesday, indicated that most of its officials see future rate cuts as appropriate, should inflation cool over time as expected.

At the same time, concerns that valuations of AI stocks are too high gnawed at investors late in 2025, and weighed on Wall Street on Tuesday.

AI chip juggernaut Nvidia became the world's first $5 trillion company at the end of October, while its current worth stands at around $4.5 trillion.

The price of gold, seen as a safe haven investment, scored multiple record highs this year.

The precious metal has benefitted from weakness to the dollar caused by the Fed's rate cuts and economic growth concerns triggered by President Donald Trump's war on tariffs.

Oil prices have retreated nearly 20 percent over the year, pressured by an oversupplied market.

Bitcoin, emphasising its volatile nature, soared to a record high above $126,000 in October before ending the year around $88,000.

In stocks trading Wednesday, the Paris market was down 0.6 percent after Hong Kong closed out the year down nearly one percent.

Over the year, Hong Kong's Hang Seng index won 28 percent. Tokyo trading had ended Tuesday, with the Nikkei 225 jumping more than 26 percent this year and Seoul rocketed 75 percent.

Frankfurt, which also ended its trading year Tuesday, rallied 23 percent in 2025, while Paris was up around 10 percent over the year.

On Wall Street, which holds a half day of trading on Wednesday, the main indices are set for double-digit annual gains with the tech-heavy Nasdaq Composite up over 21 percent for the year.

The MSCI All Country World Index, featuring a cross-section of major global companies, had an annual gain of around 21 percent.

On Wednesday, the price of silver slid further having struck record highs in December.

- Key figures at around 0945 GMT -

London - FTSE 100: DOWN 0.1 percent at 9,933.02 points

Paris - CAC 40: DOWN 0.6 percent at 8,123.03

Frankfurt - market closed for holiday

Hong Kong - Hang Seng Index: DOWN 0.9 percent at 25,630.54 (close)

Shanghai - Composite: UP 0.1 percent at 3,968.84 (close)

Tokyo - market closed for holiday

New York - Dow: DOWN 0.2 percent at 48,367.06 (close)

Euro/dollar: DOWN at $1.1727 from $1.1774 on Tuesday

Pound/dollar: DOWN at $1.3425 from $1.3503

Dollar/yen: UP at 156.60 yen from 156.00 yen

Euro/pound: UP at 87.34 pence from 87.15 pence

Brent North Sea Crude: DOWN 0.3 percent at $61.17 per barrel

West Texas Intermediate: DOWN 0.3 percent at $57.80 per barrel

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D.Graf--NZN