News

Japan BSI Large Manufacturing Conditions Index (QoQ) came in at 4.7, above forecasts (4.1) in 4Q

Australia started the day higher, while Japan and Hong Kong futures also show a strong open.

Japan Foreign Investment in Japan Stocks declined to ¥96.8B in December 5 from previous ¥655.6B

CNBC’s Jim Cramer explains what the Fed’s rate cuts means for stocks.

GBP/USD punched a fresh hole into seven-week highs on Wednesday, rising back into the 1.3400 neighborhood after the Federal Reserve (Fed) delivered a widely expected third straight interest rate cut.

The precious metals analysts at RBC Capital Markets are out with a massive call, forecasting more upside for gold over the next two years.

Despite gold already ripping 60% higher year-to-date in 2025, RBC believes the rally has continued legs. They argue that central bank buying and investment demand have fundamentally reinforced gold’s value as a non-sovereign asset.

The new price deck:

• 2026 Average: $4,600/oz

• 2026 Year-End: $4,800/oz

• 2027 Average: $5,100/oz

The 4 Key Drivers
RBC outlines four themes underpinning this bullish view:

1. Geopolitics: “Hostile global policy” is dividing economies and reshaping growth outlooks.

1. AI Impact: Technological change is adding to uncertainties regarding inflation and growth.

1. Monetary Policy: Softer policy is on the horizon, even with inflation sticking above target.

1. The Debt Trap: High government indebtedness and budget deficits remain an “enduring headwind.”

Perhaps the most interesting note for equity traders is RBC’s take on miner behavior. Historically, producers act pro-cyclically—spending recklessly on M&A and capex when prices rise, which destroys returns.

RBC says this time is different.

• Producers are focused on deleveraging and dividends.

• Sector net debt to EBITDA is sitting at zero (that’s right 0.0x)

• 2026 margins are forecast at an impressive $1,470/oz (that’s 7x higher than 2023).

• Reserves are being calculated conservatively at <$2,000/oz (less than 50% of current spot prices).

Stock Moves: Royalty plays get the nod
With the new commodity deck, analyst Josh Wolfson is shuffling the ratings. He views royalty companies as trading at attractive valuations and better insulated from cost risks than the producers.

Upgrades:

• Franco Nevada (FNV): Upgraded to Outperform (Target raised to $250 from $225).

  • Why? Valuation is supportive. The Cobre Panama mine restart discussions in early 2026 are a key catalyst, though uncertainty remains. Even without it, the base case is stable.

• Wheaton Precious Metals (WPM): Upgraded to Outperform (Target raised to $130 from $115).

  • Why? Growth is about to kick in. RBC sees ramp-ups culminating in high growth from 2027-2031. They forecast WPM to deliver >45% growth by 2030.

Downgrades:

• Agnico Eagle (AEM): Downgraded to Sector Perform (Target $205).

  • Why? “Growth also comes at a price.” While the pipeline is high-quality, RBC warns that consensus estimates aren’t factoring in the heavy capex (RBC @ $2.9b vs street $2.1b) needed to deliver it.

This article was written by Adam Button at investinglive.com.

The USD/JPY pair tumbles to near 156.00 during the early Asian session on Thursday. The US Dollar (USD) weakens against the Japanese Yen (JPY) after the Federal Reserve (Fed) lowered interest rates in a widely expected move. The US weekly Initial Jobless Claims data are due later on Thursday.

he numbers are out for Oracle’s Q2 fiscal 2026, and the market reaction is ugly. Shares are down more than 10% in after-hours trading and still struggling to find a base as $200 gave way.

Here is the data:

• EPS: $2.26 vs $1.64 expected

• Revenue: $16.06bn vs $16.19bn expected

• Cloud Infrastructure Revenue: +68% y/y

• Software License Revenue: -21% y/y

This is a classic case of “the bottom line doesn’t matter if the growth story has holes.” The big turnabout in sentiment is the huge AI spending commitments and the wisdom of them.

That thinking briefly led founder Larry Ellison to be the world’s richest man in September but that’s clearly marked the top and shares are down 43% since, including the after-hours drop.

On the surface, a 62-cent beat on EPS looks fantastic. In reality, it was due to a one-time $2.7 billion gain on the sale of chip designer Ampere to SoftBank for $6.5 in March. Given the performance of chip makers, that sale may have been unwise and it cuts off a potential major win for Oracle.

Investors have grown concerned about the amount of debt the company is taking on to fund a $300 billion commitment for OpenAI and other generative AI investments. Oracle is forecasting $50 billion in full-year capital expenditures, from $35 billion in September. That’s sure to rise further next year.

The legacy business also isn’t exactly healthy with software license revenue down 21%. That is a massive drag. It tells you that while the cloud business is booming (up 68%), it’s cannibalizing the old cash-cow business quickly.

Total software revenue was actually down 3%. That is not what you want to see when you are trying to pitch yourself as a high-growth AI play.

The Price Action

ORCL was already heavy coming into this print, down about 25% from the highs over the last month. The bulls were praying for a blowout to reverse the trend. They didn’t get it.

The stock is trading down below the $200.00 handle and that will be the level to watch when the market re-opens.

This article was written by Adam Button at investinglive.com.

The Canadian Dollar (CAD) found fresh 11-week highs against the US Dollar (USD) on Wednesday. The Bank of Canada (BoC) held interest rates steady, while the Federal Reserve (Fed) delivered its third straight interest rate cut, propping up the Loonie and sending the Greenback lower.

The Canadian Dollar (CAD) found fresh 11-week highs against the US Dollar (USD) on Wednesday. The Bank of Canada (BoC) held interest rates steady, while the Federal Reserve (Fed) delivered its third straight interest rate cut, propping up the Loonie and sending the Greenback lower.