🗓 Friday, December 12, 2025
► Europe higher – global records in sight as rally broadens beyond US mega-cap tech
European equities traded mostly higher, tracking Wall Street’s record close in the Dow and S&P 500 and benefiting from the ongoing rotation away from US mega-cap tech into cyclicals, value and laggards. Stoxx 600 +0.13%, DAX +0.10%, CAC 40 +0.35%, FTSE 100 -0.03%, FTSE MIB +0.36%, IBEX 35 +0.48%, SMI +0.05%. Autos, financials and selected industrials outperformed, while European semis (ASMI, BESI) lagged in sympathy with the US chip pullback. Macro headlines focused on Europe’s growing defense push and debate around frozen Russian assets, while weaker-than-expected UK GDP reminded investors of patchy growth. EUR/USD 1.173 (-0.05%), GBP/USD 1.338 (-0.05%), EUR/GBP 0.877 (flat).
► Wall Street: Tech under pressure, but rotation supports records
US futures painted a split picture again as renewed weakness in AI/semis clashed with strength in value and cyclicals. Dow futures +0.2%, S&P 500 futures -0.1%, Nasdaq 100 futures -0.45%. Broadcom -6% premarket slid after its sales outlook, while Oracle, Nvidia, Micron and other AI names remained under pressure despite still-bullish long-term AI narratives. At the same time, the Dow and S&P 500 closed at fresh record highs on Thursday, lifted by Visa, Nike, UnitedHealth and broader cyclicals as investors rotated out of crowded Big Tech into the “other 493” and small caps; the Russell 2000 is up ~2.7% this week after a new all-time high. Yields moved higher again with US 10Y at ~4.18% (+4 bps), as markets balance more cuts ahead against resilient growth and rising issuance.
► Asia-Pacific firmer – region rides US value rotation and global AI/infrastructure themes
Asia-Pacific markets traded higher across most major indices, following Thursday’s record US closes and benefiting from the broader equity rally that is no longer exclusively driven by US mega-cap tech. Nikkei +1.37%, Kospi +1.38%, HSI +1.75%, Taiwan +0.62%, Nifty +0.57%, ASX 200 +1.23%, Shanghai +0.41%, Shenzhen +0.84%, STI +1.45%. Japan and Korea outperformed as financials, cyclicals and selected chip names attracted flows despite the US tech wobble. Chinese and Hong Kong benchmarks advanced as well, helped by the global risk-on tone and a softer dollar. Overall, Asia participated in the “broadening-out” trade, with gains more evenly distributed across sectors and markets.
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