European Midday Briefing: Shares Up, Precious Metals Rally as New Year Begins

MARKET WRAPS

European shares were up on the first day of trading of 2026 with little in the way of economic data due today.

London's premier FTSE 100 index opened the new year at a record high, passing the 10,000 mark for the first time , with the European-wide Stoxx 600 also hitting a new record.

Global market liquidity is expected to be thin before a likely pick up next week, Danske Bank said. "Looking ahead, market liquidity should improve next week alongside a fuller data slate ."

Next week's data include key U.S labour market releases such as the December jobs report on Jan. 9 and the ISM surveys. The data could give further cues on the Federal Reserve's next policy move.

The Fed is expected to cut rates four more times in 2026 to move to a neutral rate , Navellier & Associates said. Weak home prices are raising deflation concerns that the central bank needs to address.

"Additionally, there is no reason for the Fed to remain restrictive when the U.S. economy is not creating many jobs," it added.

Barclays maintains its expectation for the Fed to lower interest rates twice in 2026, by 25 bps each in March and June. The bank views the risks around this baseline as skewed toward delayed rate cuts .

Gold and silver prices were on the rise, starting 2026 on an upbeat note. Gold notched its largest one-year net gain on record last year, as Comex gold contracts climbed 64.5%. Silver also hit a record high in 2025 and surged nearly 148% in 2025.

U.S. Markets:

Stock futures were up on Friday, kicking off the new year with gains following a strong 2025.

The S&P 500 gained 16% last year, marking its third consecutive year of double-digit gains.

Forex:

The dollar traded steady against a basket of currencies and against the euro in quiet trade after the New Year holiday.

Bonds:

Eurozone government bond yields rose , tracking Treasurys.

In 2025, global bonds had their strongest year since 2020 , although there were significant divergences in performance, Deutsche Bank said.

Energy:

Oil was steady as prices hold around three-month averages. Prices are likely to move in a $55/bbl-$65/bbl range in 1Q 2026, Phillip Nova said. "The dominant theme across markets remains the supply-demand imbalance ."

Metals:

Gold rose as geopolitical tensions continued into the new year. Tensions between Saudi Arabia and the United Arab Emirates have risen as the states' proxies clash in Yemen, with geopolitical risk supporting the safe-haven asset .

Silver

Silver clawed back losses caused by the CME Group's increased margin requirements at the end of 2025. Heightened geopolitical tensions also supported silver levels.

The precious metal could benefit more than gold in a potentially declining interest rate environment said XS. Silver's high liquidity, ease of trading and relatively lower cost compared with gold makes it an attractive option as a safe-haven asset for both retail and institutional investors .

EMEA HEADLINES

Orsted's Revolution Wind to File Injunction Against U.S. Construction Halt

Orsted said its U.S. joint venture would seek an injunction against the Trump administration's lease suspension order, which halted the construction of all U.S. offshore wind projects.

Revolution Wind, a 50-50 venture between the Danish renewable company and Global Infrastructure Partners' Skyborn Renewables, filed a supplemental complaint challenging the order, Orsted said. The complaint, filed in the U.S. District Court for the District of Columbia, would be followed by a motion for a preliminary injunction, it said.

U.S. Slashes Proposed Tariffs on Italian Pasta

The U.S. has stepped back from imposing trade-killing duties on Italian pasta makers, meaning that Italian-made pasta will most likely continue to be available in U.S. stores.

Previously, the U.S. Commerce Department had said it would slap antidumping duties of 92% on Italy's main pasta exporters as soon as January-a measure that Italian pasta makers said would force them to pull out of the U.S. market. Italy's government and the affected companies have been lobbying the Trump administration for weeks to revise the decision.

Iranian Protesters Killed as Unrest Turns Violent on Fifth Day

Violence erupted between Iranian protesters and police during unrest on Thursday, leaving at least five dead on the fifth day of demonstrations over the country's economic crisis.

Three people were killed during a demonstration outside a police station in Lorestan Province in western Iran, according to Fars news agency, which is affiliated with the paramilitary Islamic Revolutionary Guard Corps. Another two people were killed during a protest near the governor's residence in Lordegan, another western Iranian province, Fars said.

Fire at Swiss Ski Resort Kills Roughly 40

CRANS-MONTANA, Switzerland-Roughly 40 people were killed and some 115 injured in a fire that suddenly broke out during New Year's celebrations at a bar in this quaint Swiss ski-resort town, authorities said.

Crowds of young revelers were packed into the bars of Crans-Montana to dance and drink Champagne when, at 1:30 a.m. local time Thursday, authorities say smoke was first spotted outside a bar called Le Constellation.

GLOBAL NEWS

Asian Factory Activity Gauges Signal Growth But Cost Pressures Cloud Recovery

The Asian manufacturing sector seems to be on firmer ground, wrapping up last year on an optimistic note as survey data signaled improving factory activity though rising cost pressures could cloud any recovery.

Purchasing managers index data from S&P Global released Friday showed improved manufacturing activity, including in export powerhouses Taiwan and South Korea.

Trump Rolls Back Tariffs on Furniture and Kitchen Cabinets

President Trump delayed by a year tariff increases on upholstered furniture, kitchen cabinets and vanities, the latest move to walk back levies in the face of consumer frustration over high prices.

The increased tariffs, announced in September to target lumber-based products, were set to go into effect on Jan. 1, according to a White House statement published on New Year's Eve.

The $358 Billion Question for the New CEO of Berkshire Hathaway

Greg Abel's time has come, and there's a $358 billion question on investors' minds: What will the new chief executive of Berkshire Hathaway do with all of that cash?

As Warren Buffett's handpicked successor, Abel faces several challenges as he takes the reins today. For one, he isn't Warren Buffett, who became a household name as the leader of one of America's most-admired companies. Shareholders don't know if Abel can channel the stock-picking magic of his predecessor, who earned the nickname the Oracle of Omaha.

As Signs of Aging Emerge, Trump Responds With Defiance

WASHINGTON-President Trump is taking more aspirin than his doctors recommend. He briefly tried wearing compression socks for his swelling ankles, but stopped because he didn't like them. And he regrets undergoing advanced imaging because it generated scrutiny of his health.

"In retrospect, it's too bad I took it because it gave them a little ammunition," Trump said in an interview with The Wall Street Journal on his decision to get a cardiovascular and abdominal scan in October. "I would have been a lot better off if they didn't, because the fact that I took it said, 'Oh gee, is something wrong?' Well, nothing's wrong."

Modi Taps India's Consumer Power in Trade Fight With Trump

NEW DELHI-On a recent Sunday in India's capital, Shrey Dixit, a 22-year-old engineering student, proudly drove a khaki green, Indian-made Hyundai sport-utility vehicle off a dealership lot.

Dixit's household, with several branches of the family living together, had shared one car for nearly a decade. But after India sharply cut sales taxes in September, the family realized buying the second car they had their eye on was suddenly more than $1,000 cheaper.

Venezuelan Exiles Root for U.S. Military Action. Those Left Behind Oppose It.

LIMA, Peru-The millions of Venezuelans who have fled the rule of Nicolás Maduro stand largely in solidarity with compatriots who stayed behind-except on the question of U.S. military intervention to change the regime.

Most of the eight million Venezuelans living in exile see American military action as the best shot to bring back democracy in a country they fear they may otherwise never see again, polls show.

Iranian Protesters Killed as Unrest Turns Violent on Fifth Day

Violence erupted between Iranian protesters and police during unrest on Thursday, leaving at least five dead on the fifth day of demonstrations over the country's economic crisis.

Three people were killed during a demonstration outside a police station in Lorestan Province in western Iran, according to Fars news agency, which is affiliated with the paramilitary Islamic Revolutionary Guard Corps. Another two people were killed during a protest near the governor's residence in Lordegan, another western Iranian province, Fars said.

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This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

January 02, 2026 05:16 ET (10:16 GMT)