By Big market moves are colliding with mixed economic signals as investors head into year-end.
US growth is flashing strength, but soft spots are emerging beneath the headline numbers.
In Asia, India’s central bank is burning reserves to slow a battered rupee. Corporate shake-ups continue in Europe as Nestlé accelerates its portfolio reset.
Meanwhile, gold and silver are on a historic tear, fueled by geopolitics, rate-cut bets, and thinning holiday liquidity.
US growth surges, cracks emerge
The US economy roared ahead in the third quarter, expanding at a 4.3% annualized pace, the fastest growth in roughly two years and well above the 3.3% forecast.
Consumer spending surged 3.5%, the biggest gain all year, while exports bounced back sharply after collapsing in Q2.
Government spending also chipped in.
The silver lining? Business investment slumped, signaling cracks beneath the surface as corporate confidence wavered.
The report landed Tuesday after a delayed release, offering a cushion heading into 2026, though the labor market remains noticeably soft, a key concern as hiring stumbled and unemployment ticked up.
RBI unleashes heavy rupee defense
The RBI burned through $11.88 billion in October, its most aggressive forex defense in nearly a year, to prop up the rupee as it threatened to breach the 88.80 level.
The central bank sold $29.56 billion and bought $17.69 billion in the spot market, with forward positions swelling to $63.61 billion by month-end.
The rupee’s free fall reflected FPI outflows and trade deal jitters, forcing the RBI into overdrive after sitting back earlier in the year.
By December, the currency had already hit a record low of 91.075, prompting even more aggressive interventions.
Year-to-date, the RBI has sold roughly $38 billion defending the rupee, the steepest defense in three years, a sign of how hard the currency has been pounded.
Nestlé completes Herta exit
Nestlé completed its exit from the Herta charcuterie business by offloading its remaining 40% stake to Spanish partner Casa Tarradellas on December 23, ending a six-year joint venture.
The Swiss giant originally sold 60% of the cold-cuts maker to Casa Tarradellas in 2019 for €690 million, keeping a minority stake, but never disclosed terms for Tuesday’s final sale.
The move aligns with CEO Philipp Navratil’s aggressive portfolio purge, which includes scrapping underperformers and embracing plant-based over traditional meat.
Nestlé has already axed 16,000 jobs and is reviewing water and vitamins businesses under a new strategic lens, jettisoning legacy brands that don’t fit its health-focused pivot.
Casa Tarradellas now holds Herta’s charcuterie operations across France, Germany, Belgium, and the UK, plus dough businesses in France and Belgium.
Gold, silver in historic surge
Gold smashed past $4,494 an ounce on Tuesday, posting its 52nd record close of the year and putting the metal up roughly 70% since January, its best year since 1979’s oil crisis.
Silver matched the momentum, rocketing to an all-time high near $70 an ounce and surging over 141% year-to-date, crushing any other asset class.
The twin rally came on the back of geopolitical heat, US-Venezuela tensions, and Russian shipping blockades, heightened safe-haven demand, while expectations for Fed rate cuts next year and weak dollar dynamics fueled the surge.
Speculators are already eyeing $5,000 gold by end-2026; JPMorgan agrees the rally has legs, predicting further climbs.
With physical silver supplies tightening and industrial demand staying robust, analysts reckon the momentum extends into 2026.
Holiday liquidity is thin, though, don’t be shocked by added volatility as year-end approaches.
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