19-12-2025

Global Markets React to Inflation and Rate Hikes

Date: 19-12-2025
Sources: bbc.com: 1 | cnbc.com: 3 | scmp.com: 1
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Source: scmp.com

Image content: The image depicts Donald Trump sitting at a desk, wearing a black suit jacket, white shirt, and red tie. * The main subject is Donald Trump. * Visible objects include a desk with a black folder bearing the presidential seal, a small box containing pens or pencils, and a black leather chair behind him. * Other people are partially visible in the background. Donald Trump is seated at a desk with his hands clasped together, looking to the left. He is surrounded by various objects on the desk and people in the background.

Summary

Global markets saw significant movements as the Bank of Japan raised interest rates and US inflation data was released despite concerns over its accuracy due to the government shutdown. Meanwhile, a major deal was announced between Trump Media and a fusion energy firm, and various other market updates were reported across Asia and the US.

Key Points

  • The Bank of Japan raised its benchmark interest rate to 0.75%, its highest level since 1995, causing Japan's Nikkei 225 to rise 1.03%.
  • US inflation data for November showed a lower-than-expected rate, but its accuracy is questioned due to the government shutdown.
  • Trump Media is merging with TAE Technologies, a fusion energy firm, in a $6 billion deal to create a publicly traded fusion company.
  • Asian markets saw gains with South Korea's Kospi and Australia's S&P/ASX 200 rising 0.65% and 0.39%, respectively.
  • The US S&P 500 rose 0.79% driven by lighter-than-expected inflation data and strong guidance from Micron Technology.

Articles in this Cluster

Trump Media to merge with fusion energy firm in $6bn deal

Trump Media & Technology Group (TMTG), the company behind Donald Trump's Truth Social platform, is merging with TAE Technologies, a Google-backed energy company, in a deal valued at over $6 billion. The merger aims to create one of the world's first publicly traded fusion companies, with plans to construct the world's first utility-scale fusion power plant next year. Fusion power is a method of generating energy from nuclear fusion reactions, releasing vast amounts of energy with little radioactivity. The combined company will have a nine-member board, with Trump Media's CEO Devin Nunes as co-CEO. TAE Technologies has raised over $1.3 billion in funding from investors like Google and Goldman Sachs. The deal marks a significant shift for Trump Media from social media to the energy sector.
Entities: Donald Trump, Trump Media & Technology Group (TMTG), TAE Technologies, Google, Devin NunesTone: neutralSentiment: positiveIntent: inform

Asia markets: Nikkei 225, Kospi, Nifty 50, Japan BOJ rate decision

The Bank of Japan raised its benchmark interest rate to 0.75%, the highest level since 1995, in line with economists' expectations. Japan's Nikkei 225 rose 1.03% following the rate hike, while the yen weakened 0.33% against the US dollar. Other Asian markets also saw gains, with South Korea's Kospi and Australia's S&P/ASX 200 rising 0.65% and 0.39%, respectively. The rate hike comes as inflation has remained above target levels for nearly four years. Analysts believe the government's acceptance of interest rate hikes is centered on the Ministry of Finance's concerns about yen depreciation. The US S&P 500 also rose 0.79% overnight, driven by lighter-than-expected inflation data and strong guidance from Micron Technology.
Entities: Bank of Japan, Japan, Nikkei 225, Ministry of Finance, Ken MatsumotoTone: neutralSentiment: positiveIntent: inform

CNBC Daily Open: Best not to put too much stock in U.S. CPI report for November

The article discusses the U.S. Consumer Price Index (CPI) report for November, which showed a lower-than-expected inflation rate of 2.7%. However, the report's accuracy is questioned due to the U.S. government shutdown affecting data collection. Despite this, U.S. stocks rebounded on Thursday, with the S&P 500 and Dow Jones Industrial Average snapping four-day losing streaks. Other news includes TikTok's plan to create a U.S. joint venture and Nvidia and Alphabet's investment in a coding startup. European central banks' interest rate decisions were also reported.
Entities: U.S., CPI, Bureau of Labor Statistics, Jerome Powell, Evercore ISITone: neutralSentiment: positiveIntent: inform

CNBC Daily Open: Investors might not want to take U.S. inflation numbers in November at face value

The U.S. inflation numbers for November 2025 were released, showing a lower-than-expected annual headline rate. However, experts caution that the report may not be entirely reliable due to the government shutdown affecting data collection. The Bureau of Labor Statistics (BLS) noted that certain data were 'carried forward' from previous months, and some categories had 'zero inflation' imputed. Despite these concerns, investors reacted positively to the report, with major indexes rising. Other global market news included Japan's Nikkei 225 jump, the Bank of Japan's interest rate hike, India's ICICI Prudential shares surging in their trading debut, and the European Union approving a $105 billion aid package for Ukraine.
Entities: United States, Bureau of Labor Statistics, Federal Reserve, Jerome Powell, Evercore ISITone: neutralSentiment: negativeIntent: inform

US Economy, Trade & Business: Latest News and Updates | South China Morning Post

The article provides updates on US-China trade and business relations, including the US launching a review of Nvidia's H200 chip sales to China, China cutting US Treasury holdings, and the US signing a defence bill restricting investment in Chinese tech and military firms. Other topics include the US-China trade war, TikTok's deal with an American investor group, and China's soybean imports. The article also touches on the US Federal Reserve's rate cut and China's sovereign fund opening a London office.
Entities: US, China, Nvidia, Donald Trump, TaiwanTone: neutralSentiment: negativeIntent: inform