Global markets delivered mixed results in December as investors reassessed the outlook for interest rates. The US Federal Reserve cut rates by 25bps but signalled caution, leading to diverging expectations across central banks, with Australia and parts of the Asia-Pacific region shifting toward possible rate hikes in 2026. Equities were uneven, with Europe outperforming, Australia gaining modestly, and US markets mixed. Commodity prices surged, driving record highs in gold and silver and supporting mining stocks. Economic data showed softer labour markets but resilient growth, particularly in the US, while China showed early signs of stabilisation.