1. Wall Street Maintains Optimistic Outlook for Emerging Markets in 2026 Major Wall Street banks are preparing for another strong performance in emerging markets, anticipating that a weaker U.S. dollar and the AI investment boom will further boost the asset class. These factors are expected to drive continued gains, with local currency bonds delivering a 7% return—their best performance since 2020—and currency indices rising over 6%. Morgan Stanley strategists noted that potential Fed rate cuts amid a slowing U.S. economy could sustain the rally. The bank recommends maintaining long positions in emerging market local bonds, projecting an 8% return by mid-2026, while dollar-denominated bonds are forecast to deliver "high single-digit" gains over the next 12 months.

2. Gold Dips from Near Two-Week High as Traders Assess US Rate Cut Prospects Gold prices fell Thursday, retreating from a near two-week peak as investors weighed the likelihood of a December Fed rate cut. Spot gold was down 0.2% at $4,157.29/oz by 5:00 AM Beijing time, while December U.S. futures slipped 0.2% to $4,154.30. Julius Baer analyst Carsten Menke stated, "We still expect the consolidation that began with October's pullback to continue, as this correction isn't fully over."

3. BOE's Greene: Energy Measures in Budget May Help Lower Inflation Expectations Bank of England policymaker Megan Greene said Thursday that the UK government's £150 ($199) annual reduction in household energy bills could help ease public inflation expectations, though the policy impact remains unclear. Greene noted that policymakers typically disregard measures causing one-off price drops rather than sustained disinflation. Speaking at a Goodbody event in London, she added that given elevated household inflation expectations, any measure lowering future inflation perceptions would aid the central bank.

4. Dutch Prosecutors Fine Morgan Stanley €101M for Dividend Tax Evasion Dutch authorities imposed a €101 million ($117.1M) fine on two Morgan Stanley entities in London and Amsterdam for dividend tax avoidance, the Public Prosecution Service announced Thursday. The penalty is separate from the bank's late-2024 tax settlement with Dutch authorities, including accrued interest. Under Dutch law, domestic shareholders can reclaim dividend tax credits, while foreign investors generally cannot. Prosecutors said Morgan Stanley used a special structure enabling ineligible parties to improperly claim refunds.

5. Zelenskyy: Ukrainian and US Delegations to Meet This Week on Peace Plan Ukrainian President Volodymyr Zelenskyy confirmed Thursday that Ukrainian and U.S. teams will meet this weekend to advance Geneva-discussed proposals for peace and security guarantees. In an evening address, Zelenskyy stated, "Our delegation will be fully prepared for substantive work during these talks aimed at finalizing peace and security arrangements."

6. OPEC+ Likely to Hold Output Steady, Finalize Capacity Assessment Mechanism OPEC+ is expected to maintain current oil production levels at Sunday's meeting while potentially finalizing a framework to assess member nations' maximum production capacities. Two delegates indicated the group—comprising OPEC and Russia-led allies—will likely extend its Q1 2026 production pause for eight members already scheduled for 2025 increases. The cartel, which produces half of global oil, has long debated capacity data used to set output targets.