Wealthion Macro Bites 12/12/25

At the Chinese Communist Party’s annual Central Economic Work Conference (12/10-12/11), leaders pledged to maintain a “proactive” fiscal policy in ’26 to stimulate both consumption and investment to maintain high economic growth (expected 5% target).  The Conference served as the most tangible evidence yet that China will pursue forceful stimulus to break from its economic slowdown in H2 ’25. 

Importantly, the CEWC formalized Beijing’s “anti-involution” policies by adopting “optimize supply” as a new policy mandate, raising the specter of capacity controls for industrial metals such as copper, and vaulting Shanghai copper futures to an all-time high (+1.4%).  LME copper futures also rose 2.8% to an all-time high ($11,897/t), and LME zinc futures surged 4.2% (to $3,374/t).

Treasury Secretary Bessent announced sweeping overhaul of the Financial Stability Oversight Council (which he chairs), to shift focus from its historical mandate of monitoring risks to the financial system to a more proactive approach of boosting economic growth by reducing strict financial rules and overregulation.  Bessent pledged to work with other regulatory agencies to identify and eliminate rules which may “impose undue burdens and negatively impact economic growth, thereby undermining financial stability.”

Manfred Weber (head of the European Parliament’s biggest group of MEP’s) said the EU is close to dropping its flagship pledge to ban sales of “petrol, diesel and hybrid cars” by 2035.  This stunning development follows recent revolts by member states, most notably Germany and Italy. 

Euro Stoxx 50 +0.33%, S&P futures -0.15% and Nasdaq futures -0.55%.  DXY dollar index +0.15%, spot gold +1.2% and spot silver 1.25%.