China Urges Gulf Nations To Seal Free Trade Agreement

Summary:

China's foreign minister has pressed the Gulf Cooperation Council to conclude long-running talks on a free trade agreement with China, attributing the urgency to rising protectionism and unilateralism as free trade comes "under attack", according to a Monday statement from the ministry.

Key points:

· China tells GCC conditions are ripe for free trade deal

· FM Wang Yi says China-GCC FTA will signal importance of free trade

· China, Saudi seek closer coordination on wider diplomacy, security issues

· Wang emphasises energy and investment cooperation with Saudi Arabia

Chinese Foreign Minister Wang Yi is on a three-nation tour in the Middle East that began in the United Arab Emirates and is expected to end in Jordan. He met GCC Secretary-General Jasem Mohamed Albudaiwi in Riyadh on Sunday, when he also met top Saudi officials separately.

"The talks have lasted for more than 20 years, and conditions for all aspects are basically mature, it is time to make a final decision," he said during a meeting with Albudaiwi, according to the Chinese foreign ministry.

A successful FTA will send a "strong signal to the world about defending multilateralism," Wang said, adding that China was supportive of the bloc strengthening its strategic autonomy and coordination, and advancing its integration process.

China has interests in deepening cooperation in economy, trade, investment and other fields with the GCC as well, Wang said.

CLOSER COORDINATION WITH SAUDI

China and Saudi Arabia agreed to closer communication and coordination on regional and international issues, with Beijing lauding Riyadh's role in Middle East diplomacy and security, other statements following a meeting between the nations' foreign ministers showed.

Wang's meeting with Saudi Arabia's Foreign Minister Prince Faisal bin Farhan Al-Saud also took place on Sunday in the Saudi capital.

A joint statement published by China's official news agency Xinhua did not elaborate on the issues where the two countries would strengthen coordination, but mentioned China's support for Saudi Arabia and Iran enhancing their relations as well as support from both sides for the "comprehensive and just settlement" of the Palestinian issue.

"(China) appreciates Saudi Arabia's leading role and efforts to achieve regional and international security and stability," said the statement released on Monday.

Wang told his Saudi counterpart that China regarded Saudi Arabia as a "priority for Middle East diplomacy" and an important partner in global diplomacy, a Chinese foreign ministry statement on Monday said.

He also encouraged more cooperation in energy and investments, as well as in the fields of new energy and green transformation.

In a separate meeting with Saudi Crown Prince Mohammed bin Salman, Wang underscored China's readiness to play a part as the "most reliable partner" in the Middle Eastern country's revitalisation, as well as "inject more stabilising factors" to realise peace and security in the region, another foreign ministry statement showed.

The countries have agreed to mutually exempt visas for diplomatic and special passport holders from both sides, according to the joint statement.

Source: TradingView

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Gerik

Economic

Investor Caution Deepens Ahead of Pivotal Central Bank Meetings

At the beginning of the week, Asian equities experienced a noticeable retreat, reflecting widespread investor caution as several critical monetary policy decisions loomed. The MSCI index covering Asia-Pacific equities outside Japan slipped by 1%, with South Korea's benchmark plunging as much as 2.7%. This shift was particularly significant given the South Korean market’s outstanding performance throughout 2025.

Investor sentiment has become increasingly cautious as the year approaches its final trading days. According to Pepperstone’s Chris Weston, many institutional players have already concluded their year-end book adjustments, reducing the overall trading activity. Although liquidity remains reasonable for the moment, a significant decline is expected in the upcoming holiday week, potentially exacerbating market sensitivity to any unexpected developments.

Markets Brace for Mixed Signals from Central Banks

Global focus is now concentrated on a slew of interest rate decisions due this week. The Bank of Japan is expected to raise its benchmark rate by 25 basis points to 0.75%, signaling a shift in tone following years of ultra-loose monetary policy. In contrast, the Bank of England may reduce its rate by the same margin to 3.75%, indicating growing concerns about slowing growth or easing inflationary pressure. The European Central Bank, along with Sweden’s Riksbank and Norway’s Norges Bank, is widely anticipated to maintain current policy settings.

The diverging approaches of these central banks underscore the varying economic conditions across major economies. While Japan appears to be normalizing monetary policy amid persistent inflationary pressures, other central banks are weighing the balance between growth and inflation. The decisions taken this week will likely clarify whether rate cycles globally are converging or further fragmenting.

US Data to Return After Shutdown, Adding Another Layer of Uncertainty

Adding to the complexity of the week, the US is set to release key economic reports that had been postponed due to the recent government shutdown. The November jobs report and the monthly Consumer Price Index (CPI) are expected to offer clearer insights into the strength of the US economy and the Federal Reserve's path forward. The yield on the 10-year US Treasury note slightly declined to 4.182%, reflecting cautious optimism among investors ahead of these upcoming figures.

This delayed data could inject new volatility into financial markets, particularly if results diverge from prevailing expectations. Whether the data confirms a soft landing or reintroduces fears of overheating will influence global investor positioning in the final weeks of the year.

China’s Property Sector Reemerges as a Systemic Risk

Concerns about China’s housing market resurfaced after Vanke, one of the country’s largest and previously most stable property developers, failed to secure bondholder approval for an extension on a maturing debt obligation. The company has called for a second bondholder vote, but failure to reach consensus increases the likelihood of default. This development once again throws the spotlight on China's broader real estate crisis, which has already destabilized many firms in the sector.

Morningstar analyst Jeff Zhang emphasized the broader implications of a potential Vanke default, warning that even state-supported firms are now being scrutinized for financial stability. This marks a potential shift in investor perception, from viewing some developers as relatively safe bets to reclassifying them as systemic vulnerabilities.

In a related sign of economic weakness, China’s November data revealed declining retail sales and industrial output, along with another monthly decline in new home prices. This reinforces the perception that Beijing’s support measures have yet to generate a meaningful recovery in consumer demand or investor confidence.

Mixed Market Signals in Japan and Energy Markets

Despite a strong reading from Japan’s latest Tankan survey, which revealed business sentiment among large manufacturers hitting a four-year high, Japanese equities still trended downward. The Nikkei 225 index fell 1.4%, indicating that broader concerns such as global interest rate changes or tariffs are overriding positive domestic indicators.

Meanwhile, in energy markets, Brent crude rose to $61.46 per barrel, buoyed by concerns around supply stability. These include ongoing geopolitical tensions between the US and Venezuela, and incidents such as a fire alert issued at Imperial Oil’s Canadian refinery and a drone attack on a Russian facility, which ultimately resulted in no reported damage.

As 2025 trading winds down, the markets are navigating a confluence of cautious investor behavior, fragmented central bank actions, and delayed macroeconomic data. Coupled with renewed fears over China’s real estate sector and geopolitical energy risks, the global financial environment remains fragile. The week ahead is likely to be pivotal in shaping year-end market sentiment and early 2026 positioning. Whether the data and decisions confirm resilience or further instability will determine the direction of risk appetite in these final sessions of the year.

Source: Reuters

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Andrew Korybko

Economic

Political

The US approved Nvidia’s sale of advanced chips to Armenia late last month as part of a $500 million AI data center that’ll see 20% of its capacity reserved for Armenian companies and the remaining 80% sold to US-based firms doing business in the region according to Bloomberg. These ambitious tech plans build upon Armenia’s rich Soviet-era technological legacy, early tech education for children, and impending national high tech strategy, but there’s actually much more to them than a simple business opportunity.

This move comes shortly after the US “poached” Armenia from Russia’s sphere of influence by replacing its role in the Armenian-Azerbaijani peace process, which took the form of brokering August’s peace declaration between the two. Armenia also agreed to the creation of the US-controlled “Trump Route for International Peace and Prosperity” (TRIPP) along its southern border. TRIPP is expected to lead to the Turkish-led injection of Western influence across the South Caucasus and into Central Asia.

It's therefore not for naught that two US think tank experts recently co-authored an article in the Washington Post where they argued for increased American engagement with Armenia as the strongly insinuated means for more effectively containing Russia. Tech wasn’t mentioned in connection with this, but there’s a compelling logic behind why this new AI data center was chosen as the flagship project of their new relations, which will be led by a new joint Armenian-American company, Firebird.AI.

The “Fourth Industrial Revolution”/“Great Reset” (4IR/GR), which is centered on the interconnected trends of AI, Big Data, and the Internet of Things, is driving the cutting-edge economic-technological developments across the world that the US envisages leading per July’s AI Action Plan. One month later at the end of August, several weeks after the US-mediated Armenian-Azerbaijani peace declaration and TRIPP, Armenia and the US signed an MoU “regarding an AI and Semiconductor Innovation Partnership”.

This was followed by the US approving Firebird.AI’s ambitious plan to set up a $500 million Nvidia-powered AI data center for US-based firms in the region, thus leveraging Armenia’s location to turn it into a bastion of US 4IR/GR influence in this part of Eurasia. The goal is to solidify the US’ influence over the South Caucasus and then have Armenia serve as the launchpad for expanding the tech dimension thereof into Central Asia in parallel with TRIPP’s expansion of US economic and military influence.

Some Armenian companies will benefit from this but the nation as a whole won’t. Its people’s digital-tech sovereignty is being ceded to the US since their data will be stored on Dell servers. Socio-political trends can then be analyzed by CIA algorithms for helping the US fine-tune propaganda for accelerating Armenia’s pivot away from Russia. Of relevance, the first phase of the AI data center will be operational in the second quarter of next year, which is around the time of Armenia’s next parliamentary elections.

The Carnegie think tank declared last month that “Armenia's Election Is a Foreign Affair” in their piece urging de facto meddling in support of Pashinyan. The planned AI data center is expected to play a role in this as was explained. Keeping him in power isn’t just about solidifying the US’ new sphere of influence at Russia’s expense, which will be costly for Armenia since Russia is its top trade partner, but enabling the US to transform this facility into a regional AI-assisted spy hub as part of a new Eurasian power play.

To stay updated on all economic events of today, please check out our Economic calendar

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Winkelmann

Forex

Commodity

Gold (XAUUSD) remains in a stable consolidation zone around $4230 per ounce, near October highs. Support for prices comes from dovish signals from the Fed following the December rate cut, improved forecasts for U.S. economic growth, and lower inflation expectations for 2025–2026. Additional demand for gold arises from ongoing geopolitical risks, including the interception of a sanctioned tanker off the coast of Venezuela and continued uncertainty surrounding key conflict negotiations.

This report examines the key factors expected to drive gold prices during 15–19 December 2025, with a focus on market reactions to the Fed meeting, expectations for the 2026 rate path, and the technical structure within the 4150–4250 range where XAUUSD has been consolidating since the September–October rally.

XAUUSD forecast for this week: quick overview

· Weekly performance: Gold (XAUUSD) ends the week higher at $4230 per ounce, near October levels. Support came from the anticipated Fed rate cut and Powell's comments confirming no plans for tightening. An additional factor was rising demand for safe-haven assets amid geopolitical uncertainty.

· Support and resistance: Gold is trading within a broad upward channel of 3883–4378. The nearest support lies in the 4150–4165 zone, with key support at 3883. Resistance is concentrated at 4250 (upper boundary of the current consolidation) and 4378 (local high from late October).

· Fundamentals: The Fed maintained a moderately dovish tone, signaling possible further rate cuts. This boosted interest in gold. The central bank improved its U.S. growth outlook and lowered inflation expectations, while geopolitical events increased the appeal of safe-haven assets. Official central bank demand also continues to support prices.

· Outlook: The base case is continued consolidation within 4150–4250 as markets await new drivers. A breakout above 4250 would open the way for a test of the all-time high at 4378. A drop below 4150 would raise the risk of a deeper correction toward 4050 and then 3883. The medium-term structure remains bullish.

Gold (XAUUSD) fundamental analysis

Gold (XAUUSD) prices closed the week higher at $4230 per ounce, close to October levels when a record high was reached. This time, the driver was the expected Fed rate cut following the FOMC meeting.

Fed Chair Jerome Powell stated that the central bank is considering three policy paths: a slower pace of cuts, moderate reductions, or more aggressive steps. A rate hike is not on the table.

The Fed also maintained its forecast for one rate cut in 2026 but emphasized increased uncertainty around the timing and scale of future decisions.

In addition, the Fed raised its U.S. economic growth forecast and lowered inflation expectations for 2025–2026.

Geopolitical developments further supported gold. These include the U.S. interception of a sanctioned tanker off Venezuela's coast and continued uncertainty in global conflict negotiations — both of which are increasing safe-haven demand.

XAUUSD technical analysis

On the daily chart, Gold (XAUUSD) maintains a strong uptrend that began after breaking through the key 3883 area. Gold remains above the Bollinger midline, confirming bullish dominance and momentum. The upper band is widening, reflecting increased volatility. However, over the past weeks, price has been consolidating within the 4150–4250 range, entering a sideways phase.

MACD remains in positive territory, but the histogram shows a noticeable decline in amplitude, indicating weakening momentum after October's surge. The MACD lines are converging, often a precursor to consolidation or a deeper correction.

Stochastic, after exiting overbought territory, is now turning higher following a pullback, suggesting an attempt to resume the rally, though without a clear reversal signal yet.

The nearest resistance lies around 4378 — the local high from late October. A breakout above this level would open the path to new all-time highs. Support is at 3883, and a loss of this area would signal a deeper correction toward the lower Bollinger Band.

Overall, the structure remains bullish, but the market has entered a consolidation phase awaiting new drivers for trend continuation.

XAUUSD trading scenarios

The fundamental backdrop for gold remains positive. Gold (XAUUSD) ends the week near $4230 per ounce — close to October highs. The market was supported by dovish Fed signals: Powell confirmed that only rate cut scenarios are being discussed, with no hikes in sight. Growth forecasts were upgraded and inflation expectations lowered.

Additional demand for gold comes from geopolitical risks, such as the U.S. tanker interception and uncertainty over negotiations. Technically, gold is consolidating within the 4150–4250 range, maintaining a medium-term uptrend.

Buy scenario

Longs are appropriate if price holds above 4150–4165.

A breakout above 4240–4250 would open the way to a retest of 4378 and potential new all-time highs.

Support for bulls comes from dovish Fed commentary and strong safe-haven demand.

· Sell scenario

Shorts may be considered if price breaks below 4150.

Targets: 4050 — key support at 3883.

Selling pressure would increase with a strengthening U.S. dollar and rising bond yields.

Conclusion

The base scenario is continued consolidation in the 4150–4250 range while awaiting new catalysts.

A breakout above 4250 would strengthen bullish momentum, while a drop below 4150 would signal a deeper correction.

The medium-term trend remains bullish.

Summary

Gold (XAUUSD) ends the week at $4230 per ounce, in a phase of stable consolidation following the autumn rally. The market is pricing in the expected Fed rate cut: the likelihood of a 25 bps move in December is nearing 90%, and Jerome Powell's statements have reinforced expectations of a dovish policy path in 2026.

Gold is also supported by geopolitical risks.

The technical picture remains neutral-to-bullish. XAUUSD continues to trade within the 4150–4250 range, above key support at 3883.

The nearest resistance is at 4240–4250: a breakout above this area would open the way to a retest of the all-time high at 4378.

A break below 4150 would raise the risk of a deeper correction toward the 4050–3883 area.

The medium-term trend remains bullish.

EURUSD 2026-2027 forecast: key market trends and future predictions

This article provides the EURUSD forecast for 2026 and 2027 and highlights the main factors determining the direction of the pair's movements. We will apply technical analysis, take into account the opinions of leading experts, large banks, and financial institutions, and study AI-based forecasts. This comprehensive insight into EURUSD predictions should help investors and traders make informed decisions.

Gold (XAUUSD) forecast 2026 and beyond: expert insights, price predictions, and analysis

Dive deep into the Gold (XAUUSD) price outlook for 2026 and beyond, combining technical analysis, expert forecasts, and key macroeconomic factors. It explains the drivers behind gold's recent surge, explores potential scenarios including a move toward 4,500 to 5,000 USD per ounce, and highlights why the metal remains a strong hedge during global uncertainty.

Source: RoboForex

Risk Warnings and Disclaimers

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James Whitman

Cryptocurrency

The UK Treasury is drafting rules to bring crypto under the FCA supervision, starting in 2027. Digital assets will be regulated similar to other financial products under the legislation, the finance ministry said in a statement.

that Britain is moving to formally regulate crypto from October 2027.

The move would provide "clear rules of the road" and keep "dodgy actors" out of the market, said Chancellor Rachel Reeves. She added that the rules will hand "strong consumer protections."

"Bringing crypto into the regulatory perimeter is a crucial step in securing the UK's position as a world-leading financial centre in the digital age," the Chancellor noted.

The European Union introduced a similar legislation (MiCA) one year ago, while the US is progressing with its own set of rules for crypto regulation.

Britain seeks to collaborate with the US to foster crypto regulation and innovation through the "". The UK will introduce a draft bill into Parliament later today.Crypto Regulation Under FCA Supervision

The new set of rules would place crypto firms, including exchanges and digital wallets, under the purview of the Financial Conduct Authority (FCA).

This means the crypto services are regulated in the same way as other financial products, including by being subject to transparency standards, .

Lucy Rigby, the minister for the City of London, said that these new rules "will give firms the clarity and consistency they need to plan for the long term."

Besides, recent data from the financial regulator shows around 12% of UK adults hold some form of cryptocurrency, a figure that has risen steadily in recent years.

As a result, the UK formally recognized Bitcoin and crypto assets as legal property under a new Act of Parliament. Under the law, digital assets can be owned, inherited, and recovered.Regulator, Bank to Finalize Own Rules by End 2026

Separately, the UK FCA is planning rules for trading and market abuse, custody and issuance. Additionally, the Bank of England last month unveiled its proposals for regulating stablecoins.

Both the BoE and the FCA have promised to finalize their rules by end-2026, the Reuters report added.

The crypto regulatory rulebook plans come at a time when crypto has suffered from market turbulence and several digital asset scams recently.

The amount of money lost to investment scams by UK crypto consumers has leapt 55% in a year, per .

Separately, ministers are also drawing up plans to ban crypto political donations, raising red flags about their unverifiable origin and ownership.

Source: TradingView

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Gerik

Economic

France Raises Last-Minute Objections to Mercosur Agreement

As the European Union prepares for a key summit on December 20, French Prime Minister Sebastien Lecornu has formally requested a delay in the vote on the EU-Mercosur free trade agreement, citing insufficient safeguards for European farmers and consumers. While the European Commission has proposed some protective measures, France contends that they remain incomplete and untested, and that additional proposals are required to establish a level playing field for EU producers.

Lecornu emphasized that the conditions necessary for signing the agreement have “not been met,” and that implementation must be “operative, robust and effective” to ensure fairness in market access and compliance with EU standards.

The Trade Pact: Opportunity Meets Opposition

The EU-Mercosur accord, involving Argentina, Brazil, Paraguay, and Uruguay, aims to integrate a market of 780 million consumers, linking the EU’s manufacturing strength with South America’s agricultural abundance. From an economic standpoint, the deal offers mutual diversification:

The EU seeks to revitalize its industrial sector, especially amid global trade tensions and the fallout of protectionist U.S. policies under President Donald Trump.

Mercosur countries aim to boost agricultural exports and secure greater access to European markets.

Additionally, the deal has geostrategic implications, with the EU looking to counterbalance China’s growing influence in South America, where Beijing has become a dominant commodities buyer and industrial partner.

Agricultural Tensions Remain a Sticking Point

Despite its economic promise, the agreement has long drawn criticism from France, Poland, and several other EU countries. Their concern centers on cheap agricultural imports from Latin America, which are often produced under lower environmental and safety standards. European farmers fear these imports would undercut them on price, eroding domestic agricultural competitiveness and compromising EU food safety standards.

The European Commission has promised extra safety checks and safeguards, but the European Parliament has not yet ratified these provisions, fueling skepticism about their enforceability and political durability.

Deadline Pressure and Risk of Collapse

The urgency stems from the fact that the deal has been under negotiation for 25 years, and failure to secure an agreement by year-end could collapse the entire process, according to sources familiar with internal EU discussions. A further delay potentially into early 2026 may reopen political divisions or allow protectionist forces to solidify opposition.

France's stance underscores the broader intra-EU divide between economic liberalization and agricultural protectionism. While the EU aims to expand its global trade footprint, especially in light of geopolitical realignments, member states like France remain unwilling to compromise domestic agricultural interests. Whether the EU can bridge these internal rifts without sacrificing strategic objectives will determine the fate of the Mercosur deal and perhaps set a precedent for future trade negotiations.

Source: Reuters

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Gerik

Economic

Cryptocurrency

Regulatory Framework to Launch in 2027

The UK finance ministry has announced that a new legal framework to regulate cryptoassets will come into effect in October 2027. This regulatory shift is part of a broader effort to provide legal clarity and reduce market misconduct. The upcoming legislation, to be introduced into Parliament on the same day as the announcement, will integrate crypto firms into the UK's existing financial regulatory regime. This move marks a strategic alignment with the United States' regulatory trajectory, contrasting with the EU’s industry-specific MiCA (Markets in Cryptoassets) rules implemented in 2024.

Finance Minister Rachel Reeves emphasized that the goal is to create “clear rules of the road,” bolster consumer protections, and keep out “dodgy actors” from the digital asset space. The new rules aim to foster industry development while mitigating systemic risk. This aligns with the UK’s broader digital economy ambitions under the current government.

Transatlantic Collaboration and Market Response

A transatlantic taskforce is being established to synchronize U.S.-UK digital asset policy approaches. This cooperation responds to U.S. President Donald Trump's pro-crypto stance, which has contributed to rising global interest in digital assets despite recent volatility in Bitcoin, which has sharply dropped after reaching record highs earlier in 2025.

Market participants have welcomed the clarity. Daniel Slutzkin, UK head at Gemini, said firms had “long awaited regulatory clarity” and could now begin preparing for compliance. However, Natalie Lewis, a partner at Travers Smith, expressed concerns that the original draft legislation contained multiple unresolved legal issues and hoped for more substantial changes in the final version.

Scope of Regulation and Institutional Readiness

The UK’s Financial Conduct Authority (FCA) and Bank of England (BoE) are developing detailed frameworks, covering key areas such as:

Trading practices and market abuse

Custody and issuance

Stablecoin regulation (particularly for everyday payments)

Both regulators plan to finalize their crypto rules by the end of 2026, providing a full year for market participants to adjust ahead of the October 2027 deadline. Meanwhile, public warnings from the BoE and FCA about the speculative risks of cryptocurrencies persist, with reminders that investors should be prepared to lose all of their money.

The UK’s crypto regulatory regime represents a balancing act between promoting innovation and protecting consumers. By aligning with U.S. frameworks and diverging from the EU's approach, the UK is signaling its intent to be a competitive, yet cautious, global crypto hub. The timeline through 2027 gives both regulators and businesses room to adapt, although legal experts remain watchful of how thoroughly the upcoming law addresses technical gaps.