Please see the below article from Brooks Macdonald detailing their discussions on global markets. Received this afternoon 18/12/2025:
Growing unease over AI spend
The US market was down for a fourth day as AI valuation fears hit tech stocks. Oracle dropped to a six‑month low, having fallen almost 46% since their September peak, after reports of a failed $10bn data‑centre deal sparked concerns over soaring spending by AI companies and the debt that is funding it.
Central banks take centre stage
Central banks remain in focus. The Fed’s delayed CPI release out today will guide 2026 rate‑cut expectations, while speculation continues over Trump’s choice of Fed Chair with Kevin Hassett currently seen as the frontrunner. In Europe, the ECB is expected to hold rates, though talk of future hikes has grown, and the Bank of England is set to cut by 25bps to 3.75% later today after softer UK inflation.
Brooks Macdonald thoughts
Markets face a dual challenge of equity weakness driven by valuation concerns and economic softness, alongside uncertain monetary policy trajectories. Looking forward, this likely means heightened volatility with a balanced approach to portfolio construction appropriate.
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Andrew Lloyd
18/12/2025