Economic Review 29 December 2025

Economic data included the employment situation report for October coming in far stronger than expected, as well as gains in ISM manufacturing, job openings, and consumer sentiment.

Equities fell back last week in markets with higher technology exposure, while markets with less fared better. Bonds gained along with a drop in yields as investors sought out safe haven assets. Commodities were largely down due to a sharp drop in oil prices, while gold saw a price increase.

Economic data included no policy action by the Federal Reserve, U.S. GDP coming in strong for Q3, as well as gains in personal income/spending, durable goods orders, consumer confidence, and higher home prices. However, new home sales fell, in a continued stretch of low volume.

Equities were mixed to end the month, with the U.S. technology group pulling most indexes, as did Brazil. Bonds fared positively, as yields ticked down for the most part. Commodities declined, with little change in energy last week.