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December 2025 Global Market News
December 2025 wasn’t a “quiet year-end” for markets. It was a month where policy decisions, liquidity mechanics, and cross‑asset volatility all hit at once—while silver briefly stole the global macro spotlight.
FINANCIAL
Ryan Cheng
1/1/20265 min read
United States 🇺🇸
-Dec 10: The Fed cut rates—and flagged reserve “plumbing”-
On December 10, 2025, the Federal Reserve lowered the federal funds target range by 25 bps to 3.50%–3.75%. The statement emphasized moderate growth, slower job gains, and inflation that “remains somewhat elevated,” while also noting downside risks to employment had risen. The decision also came with a high-profile split vote (9–3)—a reminder that the Fed’s path was not “one committee, one view.”
-Dec 10: A not-so-small detail—Treasury bill buying for reserves-
In the same announcement cycle, the Fed said it would initiate purchases of shorter-term Treasury securities as needed to maintain an ample supply of reserves—a “market functioning / implementation” move rather than a change in the stance of policy. If you’re watching funding markets, the Implementation Note spelled out mechanics like: IORB lowered to 3.65% effective Dec 11; Standing repo at 3.75% and reverse repo at 3.50% (with a $160B per-counterparty daily cap); Direction to buy Treasury bills (and if needed, other Treasuries with ≤3 years remaining maturity) to keep reserves ample.
-Dec 31: Year-end liquidity spiked—Standing Repo Facility usage hit a record-
On December 31, 2025, Reuters reported a record $74.6B taken from the New York Fed’s Standing Repo Facility as firms managed year‑end liquidity needs. That matters because it’s a real-time signal of how tight (or cautious) money markets can get around year-end—even in a world where central banks are trying to keep short-term rates well-controlled.
-Dec 29–31: Silver becomes a U.S. market structure story (CME margins)-
Silver was absolutely part of December’s core financial narrative—especially in the U.S., because it ran straight through U.S. futures market structure. On Dec 29, Associated Press reported that silver and gold futures fell sharply after CME raised margin requirements, a volatility-control move that forces traders to post more collateral and often flushes out leverage. By Dec 31, Reuters described silver’s 2025 performance as extraordinary: up over 145% YTD, after hitting a record $83.62 and then settling around $72.02/oz late in the year. The key point for a December recap isn’t just “silver went up.” It’s that silver’s move collided with leverage limits, turning a commodity rally into a risk-management headline in mainstream finance.
-Dec 31: U.S. stocks closed the year with big gains (despite a down final session)-
On December 31, 2025, Reuters reported U.S. indexes ended the last session lower but finished 2025 with strong annual gains: S&P 500 +16.39%, Nasdaq +20.36%, Dow +12.97%. The same Reuters reporting framed 2025 as volatile—especially around tariff policy headlines and continued investor focus on AI-linked stocks.
Hong Kong 🇭🇰
-Dec 11: HKMA Base Rate set at 4.00% (immediately after the Fed cut)-
On December 11, 2025, the HKMA announced the Base Rate was set at 4.00%, effective immediately, using its preset formula (linked to the U.S. fed funds range and/or HIBOR averages).
On December 29, 2025, HKMA announced: Phase 2 of the RMB Business Facility involved an expanded list of 40 participating banks. Total quota increased to RMB 100 billion (from RMB 50 billion in the previous phase). Phase 2 had commenced on Dec 1, 2025. Eligible RMB financing was broadened to include capex and working-capital term loans.
-Dec 29: HKMA expanded Phase 2 of the RMB Business Facility-
-Dec 30: “Money Safe” rolled out across all retail banks-
On December 30, 2025, HKMA and HKAB said all retail banks (including digital banks) would have fully launched “Money Safe” by or before Dec 31—a protected-deposit feature requiring face-to-face anti-scam verification before protected funds can be used.
-Dec 30: Hong Kong IPOs—strong debuts and a packed pipeline-
Hong Kong’s equity capital markets closed the year with momentum: Reuters reported six Chinese companies debuted in Hong Kong on Dec 30, raising about HK$6.99B (~$900M), with most trading above issue price. Separate Reuters reporting the same day also framed a broader year-end IPO rush, highlighting deals in AI and semiconductors (including MiniMax planning a January 2026 debut).
-Dec 31: HKMA kept its D‑SIB list unchanged-
On December 31, 2025, HKMA said its annual assessment kept the list of Domestic Systemically Important Authorized Institutions (D‑SIBs) unchanged versus Dec 31, 2024, and reiterated Higher Loss Absorbency (HLA)buffer requirements ranging 1% to 3.5% CET1/RWA depending on bucket.
Global Central banks: Europe paused/trimmed, Japan stayed the outlier
-ECB (Dec 18)-
kept key rates unchanged (deposit facility 2.00%, main refi 2.15%, marginal lending 2.40%) and published updated staff projections.
-Bank of England (meeting ending Dec 17)-
cut Bank Rate to 3.75% on a 5–4 vote, and signaled the “extent” of further easing would depend on inflation.
-SNB (Dec 11)-
held policy rate at 0%, with inflation at 0.0% in November and reiterated willingness to act in FX markets if needed.
-Bank of Canada (Dec 10)-
held at 2.25%, emphasizing global resilience amid trade protectionism but high uncertainty.
-Japan (Dec 25 / Dec 29 reporting)-
Reuters reporting emphasized the BoJ’s recent hike to 0.75% and the internal debate about further hikes, with Governor Ueda signaling underlying inflation was approaching the 2% target.
Commodities
-Oil (Dec 31)-
Reuters reported oil was headed for its biggest annual decline since 2020, driven by oversupply fears; Brent down nearly 18% and WTI around 19% on the year in that report.
-Silver (Dec 26 → Dec 29 → Dec 31)-
Reuters reporting on Dec 26 described silver hitting $75+ (record territory at the time) amid speculation, rate-cut expectations, and geopolitical tension. By Dec 29, margin changes and volatility management became part of the story (CME margins, per AP). By Dec 31, Reuters framed silver as the standout precious metal of 2025, noting it hit a record $83.62 and remained extremely volatile into year-end.
Others
-Crypto: December ended with Bitcoin “macro-linked” again-
On Dec 31, Reuters reported Bitcoin was on track for its first annual loss since 2022 (down over 6% in 2025 in that story) and described the year’s price action as increasingly driven by macro/geopolitical forces and broad risk sentiment.
-China: year-end policy signals and FX mechanics (announced in Dec, some effective Jan 1)-
CFETS basket update (announced Dec 31; effective Jan 1, 2026): Reuters reported China would lower weightings of major currencies (USD, EUR, JPY, AUD) and increase weightings for currencies including the Hong Kong dollar and Korean won.
2026 investment plan (Dec 31): Reuters reported China’s NDRC approved a 2026 investment plan totaling about 295B yuan (~$42B), focused on major infrastructure/security projects plus ecological/carbon reduction projects.
2026 macro stance (Dec 31): Reuters reported Xi said China would push more proactive macro policies in 2026 and reaffirmed the 2025 growth target trajectory.