Afternoon Report: Markets in the Final Sprint of a Strong Trading Year

Good afternoon, dear Money Peak readers! Markets are showing strength on the penultimate trading day of the year: The DAX is up 0.58% and approaching its yearly high, while US equities are slightly lower following weak housing price data. Meanwhile, precious metals are experiencing a remarkable upswing – silver is posting its strongest performance since 1979 with a gain of 7.55%.

⚡ Money Peak 24h Snapshot

• DAX up 0.58% to 24,492.99 points – third strong market year in a row with over 20% gains
• US markets slightly negative: S&P 500 (-0.12%) and Dow Jones (-0.21%) following weak real estate data
• Precious metals rally: Silver (+7.55%), Gold (+1.09%), and Platinum (+5.76%) with substantial gains
• Final trading week of 2025 with shortened trading hours (German stock exchange closes tomorrow at 2 PM)
• Experts warn of overvaluation in US market: S&P 500 with forward P/E ratio of 25

💹 Current Market Drivers in Focus

Year-end rally for the DAX: The German benchmark index is heading toward an annual gain of over 20%, significantly outperforming both the EuroStoxx and Dow Jones [1]. Between the holidays, many investors remain absent from the market, resulting in lower trading volumes.

US housing market cooling: The Case-Shiller Home Price Indices released this morning show a slowdown in price increases, slightly weighing on US equities [2].

Precious metals with year-end sprint: Silver is particularly shining with an increase of over 7.5%, recording its best year since 1979 according to TD Cowen [3]. Gold, platinum, and palladium are also showing significant gains.

US market overvaluation causing concern: The S&P 500 currently exhibits a forward P/E ratio of 25 and a Shiller P/E of 40.7 – historically, these are signals of elevated correction risk [4].

Outlook for 2026: Experts anticipate continued but more moderate equity market growth with broader market participation. The dominance of the "Magnificent Seven" could diminish, while European equities and emerging markets offer potential for catching up [5].

📊 Market Data Overview

Major Indices

Top and Bottom Performers in the DAX

Top Performers:

Bottom Performers:

Commodity Prices

Currencies and Bonds

🔍 Our Focus Topic: Silver with Record Performance

Silver is experiencing a remarkable upswing, posting a daily gain of 7.55% at a current price of $75.78, marking its best annual performance since 1979. According to TD Cowen analyst Nicky Ghali, the precious metal is benefiting from multiple factors:

"This is the best performance in silver markets since 1979. The combination of industrial demand, particularly from renewable energy, and its role as a safe haven is driving prices to record levels." [3]

Other precious metals are also showing strength: Platinum (+5.76%), Palladium (+4.75%), and Gold (+1.09%) are recording significant gains. This development stands in contrast to Bitcoin, which continues to trade around 30% below its all-time high.

For investors, this presents an interesting diversification opportunity, particularly given the increasing concerns regarding valuation levels in equity markets.

💡 Money Peak Assessment: What the Last 24 Hours Mean for You as an Investor

No immediate action required at year-end, but a critical review of your portfolio is advisable:

1. Review US technology stocks: The high valuations in the S&P 500 (forward P/E of 25, Shiller P/E of 40.7) suggest an elevated risk of correction. Taking profits on strongly performing tech stocks and reallocating to value and dividend securities may be prudent.

2. European equities as an alternative: Although the DAX has performed strongly in 2025, it still offers more moderate valuations compared to US indices. European equities may have further catch-up potential for 2026.

3. Precious metals as a complement: The strong performance of silver, gold, and platinum argues for their inclusion as a hedge against market turbulence and inflation. Silver, in particular, shows impressive momentum.

4. Don't forget emerging markets: The overheating of US markets could favor capital flows to emerging economies. Diversified ETF investments provide access to potential growth markets here.

In the coming weeks, investors should pay particular attention to these themes:

• The first corporate earnings reports for Q4/2025 and outlooks for 2026
• The development of US economic data (labor market, inflation, real estate market)
• Signals from central banks regarding their future monetary policy direction

📆 Outlook: Important Events Today

15:00 CET (US): S&P CoreLogic Case-Shiller + FHFA House Price Reports (Oct)

15:45 CET (US): Chicago PMI (Dec)

20:00 CET (US): FOMC Minutes

22:30 CET (US): API Crude Oil Inventory (Week ending Dec. 26)

References:
[1] Deutsche Börse-News: Aktien 2025 – das dritte starke Jahr in Folge. finanznachrichten.de
[2] US Stocks Lower; Home Price Growth Eases in October. benzinga.com
[3] This is best performance in silver markets since 1979, says TD Cowen's Ghali. youtube.com
[4] 2026 Market & Economic Outlook: Valuation & Technical Concerns. seekingalpha.com
[5] Deutsche Börse-News: Ruhiger Jahresausklang nach unruhigem Jahr. finanznachrichten.de