The Christmas holiday is approaching, and the US stock and bond markets will be closed for one day. Trading of Brent crude oil futures contracts on the Intercontinental Exchange is suspended all day. Trading of precious metals, WTI crude oil, foreign exchange, and stock index futures contracts on the Chicago Mercantile Exchange is also suspended all day. Most major European stock markets are closed for the Christmas holiday, including Germany, France, the UK, Italy, and Spain. Additionally, the markets in Australia and South Korea are closed today. Overnight, US stocks steadily rose in light trading volume, successfully kicking off the historically high-probability &#34;Christmas rally,&#34; with the S&amp;P reaching a new high.
On December 25, Asian stock indices showed mixed results, and Japanese bond yields rose. The Chinese yuan and Japanese yen strengthened, with the offshore yuan breaking 7. The precious metals market saw a correction after reaching new highs, with gold falling below USD 4,500 per ounce, platinum and palladium experiencing significant pullbacks, while silver remained strong, fluctuating above USD 71 per ounce. Brent crude oil slightly declined, and cryptocurrencies rose.
Core market trends are as follows:
<blockquote>
The Nikkei 225 index closed up 0.13%, at 50,407.79 points, while the Tokyo Stock Exchange index rose 0.3%.
The yield on Japan's 2-year government bonds rose to 1.119%, and the yield on Japan's 5-year government bonds increased by 1 basis point to 1.5%.
The offshore yuan against the US dollar broke through the 7.0 level for the first time since the end of September 2024; the yen rebounded to around 155.8.
Spot gold fell over 0.1% to USD 4,479 per ounce; spot silver remained at USD 71.80 per ounce; Brent crude oil decreased by 0.05% to USD 61.84 per barrel.
Bitcoin rose 0.18% to USD 87,779.81, while Ethereum fell 0.26% to USD 2,937.87.
</blockquote>
The offshore yuan exchange rate has surpassed the 7.0 level, and the appreciation of the yuan has become a recent market focus. INDUSTRIAL SECURITIES believes that the recent appreciation of the yuan is not merely a passive response to the weakening of the US dollar, but more so driven by the endogenous momentum of market capital inflows and increased demand for currency conversion. Under the &#34;push&#34; of expectations for a shift towards a more accommodative US monetary policy and the potential narrowing of the interest rate differential between China and the US, combined with the &#34;pull&#34; of the trend of previously outflowing funds returning, the current trend of yuan appreciation may have just begun.
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The yen has rebounded to around 155.8. According to Wall Street Journal, Bank of Japan Governor Kazuo Ueda stated that as wage growth drives price increases, Japan is steadily approaching its stable inflation target of 2%. If economic performance meets expectations, the central bank will continue to follow the path of interest rate hikes.
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Demand for Japan's 2-year government bond auction was weak, leading to an increase in yields for that maturity. The bid-to-cover ratio (a key indicator of demand) was 3.26, lower than the previous 3.53 and the average level of 3.65 over the past 12 months
The yield on the two-year government bond rose by 2.5 basis points to 1.125%, reaching a new high since 1996.
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Gold fell below $4,500 after hitting a historical high during the session, previously reaching a peak of $4,525.18. According to Wall Street Insights, after breaking through the key $4,500 level, the gold market experienced a technical adjustment. Despite the short-term pullback, analysts remain optimistic about the future. Wyckoff pointed out that the next upward target for the gold market is $4,600 per ounce, expected to be reached by the end of the year, with the technical outlook still bullish.
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Silver performed relatively strongly, reaching a historical high of $72.70 during the session, and then maintaining around $71.80. Since the beginning of the year, silver prices have surged by 149%, far exceeding gold's 70% increase, supported by strong fundamentals. Wyckoff expects the next upward target for silver to be $75 per ounce, also likely to be achieved by the end of the year. The dual characteristics of silver's industrial demand and investment attributes have allowed it to gain greater increases in this round of the precious metals bull market.
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Risk Warning and Disclaimer
The market has risks, and investment should be cautious. This article does not constitute personal investment advice and does not take into account the specific investment goals, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances. Investment based on this is at their own risk

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During the Christmas holiday, the stock markets in the US, Europe, and South Korea are closed. The offshore RMB has risen above the 7.0 mark, gold prices have fallen below 4,500 USD, and silver is fluctuating at high levels. US stocks rose in light trading, with the S&P reaching a new high. Asian stock indices showed mixed results, and Japanese bond yields increased. The appreciation of the RMB has attracted market attention, and INDUSTRIAL SECURITIES believes that the trend of RMB appreciation may have just begun

Wallstreetcn

INDUSTRIAL SECURITIES

Christmas markets in the US, Europe, and South Korea are closed, the offshore RMB breaks 7, gold falls below 4500 USD, and silver fluctuates at high levels