Highlights for the morning: China's central bank kept rates on hold, copper and gold hit records

The People's Bank of China keeps rates unchanged despite weak data and the lingering real estate crisis, while industrial and precious metals are hitting all-time highs. These and other topics are in our review of key events for the morning of December 22.

The People's Bank of China on Monday, December 22, left key lending rates unchanged, despite weak economic data and the continuing downturn in the real estate sector, CNBC reports. For the seventh time in a row, the regulator kept the 1-year and 5-year loan prime rates at 3% and 3.5% respectively. The former serves as a benchmark for corporate and consumer loans, the latter - for mortgages.

The decision was made against the backdrop of a slowing economy: retail sales in November grew by only 1.3% year-on-year, industrial production - by 4.8%, and investment in fixed assets decreased by 2.6%. Prices for new housing continue to fall: in the largest cities - by 1.2%, in the secondary market - by 5.8%. Economists note that monetary policy easing alone may not be enough, and China will need additional fiscal stimulus and structural reforms.

Bourbon producer Jim Beam will suspend operations at its main distillery in Claremont, Kentucky, effective Jan. 1, CNN reports. The decision is due to the state's record stockpile of aged bourbon and uncertainty due to U.S. trade conflicts. Kentucky now has 16.1 million barrels in storage, and taxes to age them have cost the industry $75 million this year.

The company, owned by Suntory Global Spirits, said the pause is needed to modernize the site. Distillation will continue at two other Kentucky distilleries, no layoffs have been announced and bottling and warehousing will continue. The industry is also under pressure from retaliatory tariffs and lower consumer demand, with Canada restricting sales of U.S. spirits and the EU previously threatening to raise duties on U.S. whiskey.

Copper prices hit an all-time high and approached $12,000 a ton amid trade conflicts, tight supply and optimism about long-term demand, Bloomberg reports. A few days before the end of 2025 on the London Metal Exchange, copper is headed for its biggest annual rise since 2009. The market is supported by concerns over global shortages, especially amid accelerating metal shipments to the U.S. in anticipation of possible import tariffs.

Since the beginning of the year, copper prices have risen 36%, helped by unplanned mine shutdowns and growing interest in the metal as a key element of infrastructure for AI and the energy transition. Supply pressure was also evident in the negotiation of annual contracts, with processors agreeing to zero ore processing fees - an all-time low. Analysts are already giving optimistic forecasts for 2026, the agency notes: a number of banks expect copper prices to rise to $13,000 per ton. On Monday, December 22, copper was trading at about $11,967 per ton, its value increasing along with the growth of aluminum, zinc and nickel.

Gold prices hit an all-time high, exceeding $4380 per ounce, amid heightened geopolitical tensions and expectations of further Fed rate cuts, Bloomberg writes. The market lays at least two rate cuts in 2026, which supports demand for gold and silver as non-interest earning assets, the agency notes. An additional factor was increased US pressure on Venezuela and Ukraine's attack on an oil tanker of the Russian "shadow fleet" in the Mediterranean Sea.

Gold is on track for its best annual performance since 1979, adding about 65% since the beginning of 2025 due to active central bank purchases and steady inflows into ETFs. Banks expect gold prices to rise further in 2026, up to $4900 per ounce. Silver also hit a record high, jumping to nearly $69 an ounce, platinum topped $2000 for the first time since 2008, and palladium rose sharply.

- Japan's broad Topix index rose 0.64% on Dec. 22, while the Nikkei 225 rose 1.82%.

- Hong Kong's Hang Seng index was little changed, while mainland China's CSI 300 index rose 0.92%.

- In South Korea, the Kospi index was up 1.8% and the Kosdaq was up 1.42%.

- Australia's S&P/ASX 200 was up 0.91 percent.

- S&P 500 futures were up 0.24%, Nasdaq Composite futures were up 0.41%, and Dow Jones Industrial Average exchange-traded contracts were up 0.04%.

This article was AI-translated and verified by a human editor