Global easing lifts risk assets

December 23, 2025 at 21:00 UTC

5 min read

S&P index nears record high amid global central-bank easing and RBI liquidity measures

Key Points

Reuters' cross-country analysis that major central banks delivered the largest easing push in 2025 has reinforced expectations of lower global yields and supported flows into risk assets.
RBI announced a year-end liquidity package with 2 trillion rupee bond purchases and a $10 billion swap, easing rupee funding pressures and helping lower short-term money-market rates.
President Trump's remarks that the next Fed chair must back rate cuts increased short-term volatility in U.S. Treasuries and amplified volatility in risk-sensitive assets during the session.
Easing narratives and year-end flows supported U.S. equity gains; energy, communication services and technology outperformed while consumer-defensive and healthcare lagged.

Global Market Summary

U.S. equities closed higher as easing expectations and year-end flows supported risk assets: the S&P 500 (SPX) rose 0.43%, the Nasdaq (^IXIC) gained 0.54% and the Dow (DJIA) added 0.18%. European markets were mixed with the CAC 40 (FRA40) down 0.21% while the FTSE 100 (UKX) and DAX (DAX) rose 0.24% and 0.23% respectively. In Asia the Shanghai Composite (000001.SS +0.07%) and the Nikkei (NKY +0.02%) were flat to slightly higher while the Hang Seng (HSI) slipped 0.11% as global easing narratives and domestic liquidity moves set the tone.

Top Movers

Energy led sector gains (XLE +0.67%) with communication services (XLC +0.60%) and technology (VGT +0.51%) outperforming; consumer-defensive (XLP -0.52%) and healthcare (XLV -0.24%) lagged. Single-stock leaders included PSNYW (+21.13%), RGC (+15.81%) and GPCR (+12.16%). Major decliners were QBTS (-9.58%), BLLN (-7.70%) and MRNA (-7.36%).

Macro highlights

A Reuters analysis that major central banks delivered the largest easing push in 2025 reinforced expectations for lower global yields and supported flows into risk assets. The Reserve Bank of India announced a year-end liquidity package including purchases of 2 trillion rupees of government bonds and a $10 billion three-year dollar/rupee buy/sell swap to ease rupee funding pressures and help lower short-term money-market rates. The Bank of Canada published a summary of deliberations on its December decision, providing additional color that may influence short-end Canada yields and CAD forward pricing.

News that moved markets

President Trump said the next Fed chair must back rate cuts and warned dissenters would not be chosen, remarks that increased short-term volatility in U.S. Treasuries and risk-sensitive assets on the day. Coverage noting the S&P 500 (SPX) approaching a record close and Reuters' cross-country analysis of broad 2025 easing helped underpin equity gains despite heightened policy-risk headlines. IAS completed its acquisition by Novacap and VSP Vision completed its acquisition of Marcolin. Announced transactions included United Capital Financial Advisors' purchase of Groebl Brothers, adding roughly $240 million in AUM, and Highway Holdings' plan to acquire 51% of Regent-Feinbau Adermann GmbH.

Upcoming session watchlist

US MBA 30-Year Mortgage Rate (DEC/19) — vs 6.38% prior, Dec 24, 12:00 PM | Shows weekly mortgage-rate movement, indicating borrowing costs and housing demand.
US Initial Jobless Claims (DEC/20) — consensus 225K vs 224K prior, Dec 24, 01:30 PM | Weekly claims reading that gauges near-term labor demand and unemployment trends.
US EIA Crude Oil Stocks Change (DEC/19) — Dec 24, 03:30 PM | Weekly crude-stock movement, indicating shifts in oil supply and demand balance.
US EIA Gasoline Stocks Change (DEC/19) — vs 4.808M prior, Dec 24, 03:30 PM | Weekly gasoline-stock change, informing fuel supply and near-term demand balance.

Key Takeaways

U.S. equities closed higher as easing expectations and year-end flows supported risk assets; the S&P 500 (SPX), Nasdaq and Dow all posted session gains.
European markets were mixed while Asian indexes were flat to slightly higher; the Hang Seng slipped as global easing narratives and domestic liquidity moves influenced regional performance.
Energy led sector gains while consumer-defensive and healthcare lagged; single-stock leaders included PSNYW, RGC and GPCR while QBTS, BLLN and MRNA were notable decliners.
Policy headlines raised short-term market volatility even as Reuters' easing analysis underpinned equity demand; several acquisitions were completed or announced during the session.