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The IBEX 35 Index had a great performance in 2025 and was one of the best-performing global benchmarks. It jumped to a record high of €17,335, up sharply from the January low of €11,820. 

The index, which tracks the biggest Spanish companies, rose by 52% this year. In contrast, the FTSE MIB Index rose by 32%, while the FTSE 100, DAX, and the CAC 40 rose by 22%, 23%, and 11%, respectively. 

IBEX Index vs key European peers | Source: TradingView

Indra Sistemas was the top IBEX 35 stock

Indra Sistemas stock jumped by 184% in 2025, making it the best performer in the IBEX 35 Index. This surge brought its market capitalization to over €9.6 billion. 

The company’s business continued doing well, with its recent results showing that its backlog jumped to €9.5 billion. Its nine-month revenue rose by 6%, while the EBITDA rose by 10%. Most importantly, the company’s net profit rose by 58% to €291 million. 

The company’s growth was due to the ongoing performance of the European defense spending, which has continued growing in the past few years. This also explains why other companies like Rheinmetall, Thales, and BAE Systems soared. 

Solaria Energia 

Solaria Energia was the second-best performing company in the IBEX 35 Index as it jumped by 135%. The surge happened as the solar energy company announced a plan to triple its capacity and boost its profitability.

Solaria committed to investing €2.5 billion, a move that it expects to triple its operational capacity by 2028. It also signed a 150 MW solar deal and the first 180 MW wind contracts with Repsol. Solaria also expanded its business to the booming data center industry.

The company also published strong financial results, with its nine-month EBITDA and net profit rising to €230 million and €141 million, respectively. 

Banco Santander

Banco Santander was another top gainer in the IBEX 35 as it jumped by 126%. The surge brought its market cap to over €161 billion, making it one of the biggest banks in the world.

Santander’s surge mirrored that of other top European banks like Société Générale, Lloyds, Commerzbank, and Deutsche Bank. It benefited from the relatively high interest rates and the robustness of the European economy. 

Banco Santander’s profit before tax rose by 5.5% to €4.65 billion in the third quarter. Its nine-month profit jumped by nearly 5% to over €13.76 billion. 

Following Santander were other Spanish banks like BBVA, CaixaBank, Bankiter, and Banco Sabadell, which jumped by 112%, 99%, 86%, and 80%, respectively. 

Other top gainers in the IBEX 35 Index were companies like Grupo ACS, Mapfre, ArcelorMittal, and Acciona.

Top laggards in the IBEX Index

There were just a handful of companies in the red this year. Puig Brands, a popular fashion and beauty company, was the top laggard as it dropped by 16%. This retreat happened after a major downgrade from JPMorgan, which cited the slowdown in the fragrance business.

The other companies that slipped this year were Telefonica, Cellnex Tel, Redeia Corporacion, Amadeus, and Fluidra.

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India has decided to extend its safeguard duty on certain steel imports, underlining the government’s continued push to protect local manufacturers from a prolonged wave of cheap overseas supply.

The move comes as global steel markets remain under pressure from excess output, particularly from China, which has pushed prices to multi-year lows.

For Indian mills, the decision offers breathing space at a time when domestic demand is holding up, but cheap imports have intensified.

The extension also signals that policymakers see the current trade imbalance as structural rather than temporary, warranting longer-term protection for the domestic industry.

Import levy extended

The finance ministry said on Tuesday that the safeguard duty would be extended for another three years. The levy ranges between 11% and 12% on selected steel products.

These measures were first introduced in April for a period of 200 days, aimed at providing immediate relief to domestic producers facing a sharp rise in low-priced imports.

The safeguard duty will be 12% in the first year, followed by 11.5% in the second and 11% in the third.

Imports from certain developing countries are exempted, according to the finance ministry order.

The levies will be applied to imports from China, Nepal, and Vietnam.

The order also exempts duties on specialty steel products such as stainless steel.

By extending the tariff beyond its initial term, India is effectively acknowledging that the pressures on its steel sector are unlikely to ease in the near future.

Officials have argued that without such protection, local manufacturers would continue to lose market share to cheaper imports, even as domestic consumption remains relatively strong.

Global glut pressure

India’s decision places it among a growing list of countries responding to a global steel glut.

Elevated shipments from China, the world’s largest steel producer, have flooded international markets, depressing prices and squeezing margins elsewhere.

The impact has been particularly visible in emerging economies, where domestic producers often struggle to match the pricing of Chinese exports.

In India, the surge of low-cost imports has weighed on large producers such as JSW Steel Ltd. and created severe stress for smaller mills.

Some of these smaller operators have been forced to shut down operations, despite steady demand from infrastructure, construction, and manufacturing sectors within the country.

Domestic industry stakes

India’s steel industry has expanded rapidly over the past decade, supported by government-led infrastructure spending and private investment.

Even so, the country’s total output remains only a fraction of China’s vast production capacity.

Indian producers are positioning themselves for long-term growth, banking on accelerating urbanisation and industrial expansion to drive future demand.

For these companies, the extended duty represents long-awaited relief.

Shares of Indian steelmakers rose on Wednesday after the policy announcement.

State-owned Steel Authority of India Ltd. gained as much as 4.98%, while Tata Steel Ltd. advanced up to 3.2%.

JSW Steel recorded the strongest move, rallying more than 5% during the session.

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The FTSE 100 Index jumped by nearly 22% this year, confirming a strong bull run that started in March 2020 when it crashed to a low of £4,892.

Its surge to a record high happened even as the UK faced major challenges of higher tariffs from the United States, higher taxes and inflation, and slow economic growth. 

FTSE 100 Index chart | Source: TradingView

FTSE 100 Index rally boosted by higher commodity prices 

One main reason why the blue-chip FTSE 100 Index jumped by over 20% was the strong performance of top commodities during the year.

The top gainers in the index were in the commodity sector. Fresnillo’s stock price jumped by 446% this year as gold and silver jumped to their record highs. The Mexican company is one of the biggest players in the silver market globally.

Endeavour Mining stock rose by 170% as it benefited from the elevated gold prices. The company, which operates large gold mines in Africa, continued doing well as its mining production coincided with the rising prices.

Meanwhile, Antofagasta’s share price jumped by 106% this year as copper experienced its best performance in years. Antofagasta is one of the biggest players in the copper mining business, delivering over $6.6 billion in annual revenue last year.

Other mining companies like Rio Tinto, Glencore, and Anglo American were also in the green during the year. RIO rose by 26%, while the other two jumped by 15% and 12.8%, respectively. Anglo American made headlines when it announced that it would acquire Canada’s Teck Resources.

READ MORE: Here’s why this FTSE 100 Index stock jumped ~380% in 2025

UK banks contributed to the FTSE 100 surge 

Meanwhile, UK banking companies were also among the best performers during the year, a performance that mirrored that of other European banks like Unicredit, Société Générale, and Banco Santander.

Standard Chartered stock jumped by 85%, while Lloyds, Barclays, NatWest, and HSBC rose by 80%, 79%, 63%, and 51%, respectively.

UK banks continued rising as they benefited from the relatively higher inflation rate, which pushed the Bank of England to maintain higher interest rates for longer.

Banks benefit from higher interest rates because they normally lead to higher net interest margin. Additionally, the companies benefited from the strong earnings growth during the year, helped by their cost cuts during the low-interest rate era.

Most recently, the companies did well after Rachel Reeves announced her budget in which she avoided implementing windfall taxes as some analysts and think tanks had proposed.

In addition to UK banks, other companies in the financial services industry were among the top gainers during the year. Prudential, an emerging market-focused insurance company, rose by 81%. St. James Place stock rose by 60%, while Aviva, M&G, and Phoenix Group rose by over 50%.

Defense contractors jumped amid resilient spending 

Babcock International’s stock price rose by 147%, while Rolls-Royce jumped by 102%, making some of the best-performing companies in the FTSE 100 Index. BAE Systems, another top company in the index, rose by 50%.

These manufacturing giants benefited as demand for their products rose, essentially in Europe. The UK and other countries like Germany and Spain have all boosted their spending in the past few years amid signs that the US was pulling back.

Rolls-Royce share price rose as the management boosted the forward guidance amid strong demand from its airline companies. Also, it benefited from the Small Modular Reactor (SMR) business, which is expected to continue growing over time.

On the other hand, the top laggards in the index were companies like Bunzl, Diageo, Auto Trader Group, Mondial, and London Stock Exchange Group. All these companies dropped by over 20% this year.

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xAI is moving to scale up its artificial intelligence infrastructure in the southern US, buying a data centre footprint anchored in Memphis.

The expansion centres on the purchase of a third facility in the region, a move that significantly lifts the company’s planned computing capacity and reinforces its ambition to run one of the world’s largest AI training operations.

The development was disclosed by Elon Musk via a post on X.

The site acquisition brings xAI’s total planned power capacity close to 2 gigawatts, a scale that places the project among the most energy-intensive AI data centre clusters currently under development.

Expanding footprint

xAI has already completed one major data centre in Memphis, known as Colossus. A second facility, referred to as Colossus 2, is under construction nearby.

The newly acquired building, called MACROHARDRR, is located in Southaven and directly adjoins the Colossus 2 site, according to earlier reporting by The Information, which cited property records and a person familiar with the project.

By clustering multiple facilities across state lines, xAI is building a contiguous computing campus rather than a single standalone site.

This layout allows the company to concentrate energy supply, cooling infrastructure, and high-speed data connections in one region, a structure increasingly favoured by firms training large-scale AI models.

Power and scale

Musk indicated that the third building would take xAI’s training compute to almost 2 gigawatts.

At that level, the electricity demand would be comparable to that used by hundreds of thousands of US households, underlining the strain that next-generation AI infrastructure can place on local power grids.

Such a scale reflects the rapidly rising computational demands of frontier AI systems.

Training large language models requires vast amounts of parallel processing, typically delivered through dense clusters of advanced graphics processing units and specialised networking hardware.

Chips and capital

Earlier this year, Musk outlined plans for Colossus 2 to eventually house around 550,000 chips supplied by Nvidia Corp.

At prevailing market prices, such an installation would involve hardware spending running into the tens of billions of dollars, before accounting for buildings, power systems, and ongoing operating costs.

The Memphis expansion signals that xAI intends to compete at the very top end of the AI infrastructure race, alongside technology groups and cloud providers that are also investing heavily in custom-built data centres.

By owning and controlling its physical sites, xAI gains direct oversight of compute availability, a critical factor as demand for high-end AI training resources continues to tighten.

Strategic implications

The choice of the Memphis area reflects a broader industry shift toward regions that can support large land parcels, high-voltage power access, and favourable logistics.

For xAI, consolidating multiple facilities in one geographic cluster could streamline operations while accelerating deployment timelines.

As construction progresses on Colossus 2 and integration begins at the newly acquired MACROHARDRR building, the Memphis region is set to become a central hub in xAI’s long-term AI training strategy.

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“The idea of AI taking your job seems very academic — until it doesn’t,” says Karthik Shetty, who was recently laid off by an IT giant in Bengaluru, India’s technology hub.

No one will ever officially tell you that you’re being replaced by AI. But that is the reality. Many entry-level coding jobs are gradually becoming irrelevant because AI can now do this work faster and more efficiently.

Across the world in Bali, freelance creative designer Rachel Simmons has seen the same dynamic play out — not through mass layoffs but through ‘silent compression’ of work and headcount.

“AI is replacing a lot of work that once needed hours of manual effort. That’s just a fact,” she says.

Projects that earlier required at least 10 people can now be done with five. Tasks like photo and video editing, content refinement, and even basic project management — AI has simplified all of it. In that context, it’s definitely taking away jobs.

Stories like these explain why the question heading into 2026 — will AI really take your job? — has moved beyond futurist speculation into an urgent, personal debate.

From corporate boardrooms and government policy circles to dinner-table conversations, artificial intelligence is no longer an abstract productivity tool.

It is a force reshaping who gets hired, who doesn’t, and how much human labour is still needed to get work done.

One of the most sobering voices amplifying these concerns is Geoffrey Hinton, often called the “godfather of AI.”

He has warned that 2026 could mark the beginning of what he describes as a “jobless boom”, as AI systems displace tasks once considered secure.

Yet even as such warnings gain attention, other economists and labour experts caution that the scale and timing of disruption remain uncertain — likely to arrive unevenly, hitting some sectors hard while leaving others largely intact.

Why 2026 feels like a turning point?

Nobel Prize winner Hinton told CNN that AI — already handling routine work such as call-centre tasks — is improving rapidly and may be able to replace many other jobs by 2026.

He said today’s models are tackling projects that used to take human teams weeks or months and warned that, if the trend continues, “there’ll be very few people needed” in some technical roles.

That warning has fueled headlines suggesting AI might soon replace millions of jobs.

In the US and other advanced economies, some analysts have interpreted macro labour data as consistent with a softening job market, influenced by automation and AI adoption.

Over 112,000 employees were laid off in 2025 across 218 companies, according to layoffs.fyi.

A Fortune analysis highlighted rising corporate profitability coinciding with stagnant employment growth, coining the idea of a “jobless profit boom” where productivity gains accrue to capital rather than labour.

Yet Hinton’s prognosis, while influential, is not universally accepted as inevitable.

Many economists and researchers emphasise that technological adoption typically unfolds over decades, not months, and that job displacement and creation often occur in waves rather than sudden bursts.

“When the personal computer started to arrive in the 70s, people said it was going to put people out of work, and it absolutely did. But what we also saw was that it created far more jobs than it ever replaced,” says Professor John Murray, Academic Dean of the Faculty of Business and Technology at the University of Sunderland. 

AI is going to replace jobs but also create new opportunities that we have never thought of – jobs that we don’t yet know exist.

What the data say so far?

Most empirical indicators in 2025 show AI reshaping tasks rather than triggering mass layoffs.

An MIT study estimated AI can perform tasks equivalent to 11.7% of US labour, while Stanford data recorded a 16% relative employment decline for early-career workers (aged 22–25) in AI-exposed roles such as software engineering, customer support and marketing; older professionals and roles requiring human interaction held steadier.

In the UK, an NFER report forecasts that up to 3 million low-skilled jobs could disappear by 2035 because of AI and automation, even as the economy may add jobs, favouring highly skilled workers.

Where is AI most likely to touch jobs in 2026?

It is a question of task vulnerability vs. job replacement.

For example, Microsoft researchers analysed workplace interactions with AI tools and identified 40 occupations where AI may perform many core tasks, particularly those involving language, data synthesis and routine analysis — from translators and historians to customer service reps and technical writers.

But Microsoft’s own clarification to its research emphasised that high “AI applicability” does not equate to imminent job loss — it simply signals where AI can be most useful or impactful.

Jobs most vulnerable to AI centre on repeatable cognitive tasks like routine data entry, basic coding and administrative work, where tools excel at efficiency gains.

Expert forecasts diverge sharply.

HR surveys show 89% of leaders expect AI to redefine jobs next year, prioritising AI-savvy hires.​

But the gradualist view prevails among labour economists.

Glassdoor’s Chris Martin notes “very scant evidence that AI has replaced workers in 2025,” blaming economic headwinds instead.

Martha Gimbel, co-founder and executive director of the Yale Budget Lab, said in a recent interview: “It would be unprecedented if a new technology [like AI] had massively disrupted the workforce in three years. These kinds of things take time. Companies and people have to figure out how to use it.”

The transition now underway is large — and for many workers, deeply confusing.

As Simmons adds,

“For most people, AI doesn’t arrive as a headline or a policy debate. It shows up quietly — fewer emails to answer, a task that takes half the time, or a role that suddenly feels less essential than it did a year ago.”

Jobs with lower immediate risk

Jobs that depend on complex human judgment, empathy, physical dexterity, creativity, and deep domain expertise are far less likely to be replaced in 2026.

Caregiving, education, skilled trades, healthcare professionals, therapists, and many creative roles remain comparatively resilient — at least in the near term.

Grace Herring, a London-based physiotherapist, says, “If your job depends on trust, touch, or nuanced decision-making, AI is still more assistant than replacement.”

History offers a useful parallel. ATMs didn’t eliminate bank tellers; they changed the job, shifting focus toward higher-value customer interactions.

AI may do something similar across industries, reshaping tasks rather than erasing entire professions.

“The work doesn’t disappear,” Herring argues. “It just stops looking the way it used to.”

Corporate strategy and policy are already shifting

The expectation of AI-driven change has begun to reshape decision-making at the highest levels.

  • Workforce reskilling: Employers and governments are ramping up upskilling initiatives to close AI literacy gaps as digital competence becomes a baseline requirement.
  • Policy responses: Central banks and fiscal authorities are examining how AI-led productivity gains could slow job creation and affect wages, tax revenues, and employment metrics. Some analysts have even warned that widespread displacement could accelerate Social Security depletion if payroll contributions fall.
  • Ethical governance: As capital owners capture a growing share of AI-generated gains while wages stagnate, calls are growing for stronger labour protections, universal basic income pilots, and incentives for more humane AI deployment.

Not a simple yes or no

So, will AI really take your job in 2026?

The most honest answer is not necessarily, but it will almost certainly change how your job is done.

AI’s impact is conditional:

  • Some roles will see significant task automation, reducing demand for predictable human labour.
  • Others will experience augmentation, increasing demand for workers who can collaborate effectively with machines.
  • Many jobs will evolve rather than vanish, with employers valuing adaptability and hybrid skill sets more than static experience.

By late 2025, labour data suggested only modest direct job losses attributable to AI, with broader economic forces still dominant. Yet the direction of travel is clear.

As Rachel Simmons put it, “AI isn’t a single moment of disruption — it’s a slow, grinding redefinition of work.”

For people like Shetty and millions of others navigating this shift, the change is already tangible.

How workers, companies and policymakers act now — through targeted reskilling, strategic workforce planning and responsible governance — will decide whether AI becomes a destabilising force or a generational opportunity in 2026 and beyond.

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Italian stocks had a strong performance in 2025, with the blue-chip FTSE MIB Index soaring by over 30%, higher than its peers like the German DAX and French CAC 40. It rose to €45,000, up by ~40% from its lowest level in April. This article looks at some of the best and top laggards in the index.

FTSE MIB Index vs DAX, CAC 40, and FTSE 100

Fincantieri was the best FTSE MIB stock

Fincantieri, a giant company in the shipbuilding industry, was the best performer in the FTSE MIB Index as it jumped by 140%. 

The stock surged as demand for its commercial and defence ships continued rising. Its recent results showed that its backlog jumped to 100 ships worth over €61.1 billion.

The most recent results showed that its revenue rose by 20% to over €6.7 billion, while its EBITDA jumped by 40% to over €461 million. Additionally, the management expects that the business will continue thriving in the coming years, helped by its commercial and government orders.

Telecom Italia’s stock jumped by 107%

Telecom Italia was another top gainer in the FTSE MIB Index, mirroring the performance of other European telecom companies. For example, Orange was the second-best performer in the CAC 40 Index, while Airtel Africa was a key gainer in the FTSE 100. 

Telecom Italia’s business continued doing well during the year, with its revenue in the first nine months rising by 2.3% to €10 billion. This growth also happened in terms of its profitability, with the EBITDA rising by 5.4% to €3.2 billion. The company also narrowed its net loss by 78.6% to €109 million.

Iveco Group’s stock jumped after the Tata buyout

Iveco Group, the giant truck manufacturer, rose by 98% this year, helped by the buyout by India’s Tata. The company’s truck and commercial vehicle manufacturing business was sold for €3.8 billion, while the defense business was sold to Leonardo.

Leonardo soared as defence spending jumped

Leonardo’s stock price soared by 90% this year, mirroring the performance of other European defense contractors like Rolls-Royce, Rheinmetall, and BAE Systems. 

The company has benefited from the ongoing defense spending in Europe, with countries like Germany and France boosting their budgets. 

As a result, the company’s scored over €18.2 billion in new orders in the nine months. This increase brought its order backlog to over €47.3 billion. Its revenue jumped by 11% to €13.4 billion, while its EBITDA soared to €945 million. 

The other top gainers in the FTSE MIB Index were companies Banca Popolare di Sondrio (BPSO), BPER Banca, Italgas, Unicredit, Lottomatica Group, and Unipol. 

Top laggards Italian stocks

Amlifon Group stock price dropped by 45% this year, making it the worst-performing company in the FTSE MIB Index. The world’s biggest seller of hearing aid, recorded weak financial results, with its topline and bottom line falling. 

Amplifon’s revenues dropped slightly to €1.743 billion, while its net profit dropped to €74 million, down from €104 million in the same period last year. 

Automakers like Stellantis and Ferrari were among the worst performers in the FTSE MIB this year, dropping by 25% and 22%. Ferrari stock dropped as investors soured on its strategy on electric vehicles. 

The other top laggards in the index were companies like Nexi, Infrastrutture Wireless Italiane, Tenaris, Campari, and Brunello Cuccinelli.

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US spot Bitcoin exchange‑traded funds (ETFs) rebounded sharply on Tuesday, registering a combined $355 million in net inflows and ending a seven‑day sequence of outflows that reflected subdued investor activity as the year drew to a close.

Data from Coinglass shows that the resurgence in capital occurred across multiple major products, with BlackRock’s iShares Bitcoin Trust (IBIT) leading the way at roughly $144 million, followed by Ark & 21Shares’ ARKB fund at around $110 million.

Fidelity’s FBTC also attracted significant interest, helping to drive the overall positive session for the sector.

Total Bitcoin spot ETF net inflow | Source: Coinglass

Market analysts say the inflows may reflect renewed institutional interest, potentially driven by year‑end portfolio adjustments and expectations for a stronger 2026 crypto ETF landscape.

Altcoin spot ETFs also attract capital

Beyond Bitcoin, other crypto ETF categories also posted upticks on Tuesday:

Ethereum spot ETFs ended a four‑day outflow streak with about $67.8 million in net inflows, according to the data.

Date ETHA (BlackRock) FETH (Fidelity) ETHW (Bitwise) TETH (21Shares) ETHV (VanEck) QETH (Invesco) EZET (Franklin) ETHE (Grayscale) ETH (Grayscale Mini) Total
30 Dec 2025 0.0 3.7 0.0 0.0 0.0 0.0 0.0 50.2 14.0 67.9
29 Dec 2025 -13.3 3.7 0.0 0.0 0.0 0.0 0.0 0.0 0.0 -9.6
26 Dec 2025 -22.1 0.0 0.0 0.0 0.0 0.0 0.0 -16.6 0.0 -38.7
24 Dec 2025 -22.3 0.0 0.0 0.0 0.0 0.0 0.0 -33.8 3.3 -52.8
23 Dec 2025 -25.0 0.0 -14.0 0.0 0.0 0.0 -5.6 -50.9 0.0 -95.5
22 Dec 2025 0.0 0.0 0.0 0.0 0.0 0.0 0.0 53.7 30.9 84.6
Data from Farside Investors.

Newly launched spot XRP, Solana and Dogecoin ETFs all reported positive flows for the trading day, underscoring growing breadth in regulated crypto investment products.

The broader altcoin ETF space has drawn notable attention this quarter, with XRP‑based ETFs in particular showing strong demand since their launch, bucking the broader ETF trend over recent weeks.

Institutional demand on the rise

The recent fluctuation in ETF flows reflects broader caution in risk assets during year‑end trading, with investors traditionally rebalancing portfolios or locking in year‑end tax positions, factors that weighed on crypto funds into December.

Recent reports noted persistent outflows in both BTC and ETH ETFs earlier in the week, underscoring that Tuesday’s rebound marked a meaningful technical shift in liquidity patterns.

However, despite a generally choppy year for crypto ETFs, including periods where Bitcoin and Ethereum ETFs experienced persistent outflows, the year‑end rebound suggests some investors may be repositioning ahead of 2026.

Industry participants widely expect greater institutional adoption, regulatory clarity, and continued expansion of crypto ETF offerings in the months ahead.

Market analysts also note a growing number of filings for altcoin‑linked ETFs with novel structures that could appeal to diversified institutional strategies, potentially broadening the appeal of crypto exposure beyond BTC and ETH.

As crypto markets prepare for 2026, ETF flows will remain one key barometer of institutional sentiment, especially as regulatory developments and product innovations continue shaping the investment landscape.

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Biotech stocks have staged an impressive rally over the past six months, with the XBI index – key benchmark for small and mid-cap biotech names – posting one of its strongest stretches on record.

Mizuho’s senior healthcare analyst Jared Holz believes this momentum is more than a short-term bounce.

Speaking with CNBC, he argued the sector is positioned for continued strength in 2026, supported by easing drug pricing concerns, healthier market dynamics, and robust merger activity.

While volatility is inherent in biotech, Holz sees the current environment as one of the most bullish for biotech stocks in years.

Why is Mizuho bullish on biotech stocks?

For years, uncertainty related to drug pricing weighed heavily on biotech valuations.

The Inflation Reduction Act (IRA) and negotiations with the White House created a noisy backdrop that deterred investors.

However, under the Trump administration, “a dozen pharma companies have agreed with White House on pricing mechanisms,” Holz told CNBC, suggesting much of the uncertainty is now behind the sector.

With the most contentious debates resolved, investors are beginning to view pharma and biotech stocks as more investable.

According to the Mizuho analyst, this thawing of rhetoric will allow multiples to expand further, as the market no longer fears sudden regulatory shocks.  

In his view, 2026 could mark a turning point where pricing risks fade into the background.

Market structure bodes well for biotech stocks

Another reason Jared Holz is constructive is the healthier structure of the biotech market itself.

The sheer number of listed biotech assets overwhelmed investors for years, creating a “denominator problem” that diluted attention and capital.

This exponential increase in the listed biotech firms was a major reason for Holz’s bearish stance in the past.

However, with fewer new entrants and more rationalised pipelines, investors can better analyse opportunities now, the Mizuho analyst argued in the CNBC interview.

Combined with the prospect of more rate cuts, which would improve financing conditions, biotech stocks look increasingly attractive for 2026.

Additionally, the sector’s recent six-month winning streak is unprecedented, which Holz said is indicative of renewed confidence among institutional investors heading into the new year.

Merger activity could drive biotech stocks higher

Finally, Holz expects deal-making to serve as a powerful tailwind for biotech stocks in 2026.

“20 deals worth over $500 million just this year in publicly traded equities,” he noted, highlighting the scale of consolidation.

Beyond public markets, private biotech has also seen notable acquisition activity.

This wave of mergers not only validates the value of biotech innovation but also provides liquidity and confidence to investors.

Larger pharmaceutical companies are increasingly turning to biotech firms for pipeline expansion, reinforcing the sector’s strategic importance.

According to Jared Holz, this trend will continue next year, creating catalysts for valuations and sustaining momentum in small and mid-cap biotech stocks.

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Fuelled by expectations that the demand for copper—a key metal in electrification—will exceed supply, the metal is set to record its largest annual gain since 2009.

Copper, often referred to as the “red metal,” has seen a remarkable rally on the London Metal Exchange this year, surging by over 40% and hitting a series of all-time highs in a late-year climb. 

This performance solidifies its position as the top performer among the six industrial metals traded on the exchange.

On the LME, the three-month copper contract declined on the last trading day of 2025. 

At the time of writing, the copper contract was at $12,410 per ton, down 1.8% from the previous close. 

The copper market outside the US is becoming tighter as traders expedite shipments to America, driven by the prospect of impending tariffs, according to a Bloomberg report. 

Gold-to-copper value down

Furthermore, copper’s attractiveness as an industrial metal has been heightened by a depreciation of the US dollar, which reduces the cost of commodities for international buyers, and significant price surges in precious metals like gold and silver, the news agency said.

The gold-to-copper ratio has fallen to an all-time low, suggesting that copper is undervalued relative to gold. 

Analysts at China Securities Co, led by Zhou Junzhi, project a significant rally for copper in 2026, driven by the same macroeconomic factors currently propelling the gold market, according to the report.

Key drivers for this anticipated copper surge include a projected easing of monetary policy by the Federal Reserve. 

Lower interest rates typically stimulate economic activity and construction, increasing demand for the industrial metal. 

Furthermore, a boom in technology sectors, which are heavily reliant on copper for wiring and components, is expected to boost consumption. 

The reshaping of global supply chains, partly as a response to US tariffs, will also contribute to bullish demand for the “red metal.” These combined forces are set to close the valuation gap, making copper an attractive investment for the coming year.

Shortfall in copper ores

Meanwhile, the primary factor driving the copper price surge is the anticipated shortfall of copper ores. This is due to a less dynamic growth in mine production over recent years, which now faces the risk of being outpaced by demand.

Unexpected production cuts have intensified these concerns. 

Source: Commerzbank Research

For example, public protests forced the shutdown of Panama’s largest mine.

The situation has been further complicated by additional production disruptions stemming from accidents and protests in Chile and Peru, which are globally the two most significant mining nations.

The most compelling evidence of a raw material shortage is the change in treatment and refining charges (TCRCs) that mining companies pay copper smelters for processing ore, according to a Commerzbank AG report. 

These fees turned negative earlier this year in China, the world’s leading copper producer, the German bank said. 

This negative territory means that Chinese copper smelters are now paying mining companies to secure copper ores, signaling a scarcity.

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The market performance of altcoins during 2025 followed Bitcoin because investors chose to invest in digital assets that operated under established frameworks and demonstrated practical applications.

The TradingView data shows Bitcoin experienced a 7% year-to-date decline because of an early-October market downturn, which also caused altcoin market capitalization to drop by 46% from its highest point in 2025.

The analysis showed me several unique tokens that stood out to me.

XRP experienced growth because of new regulatory standards, and institutional investors began to invest in the currency. Zcash prices increased because users started to demand privacy features again in the market.

The real-world tokenization projects of Algorand led to an increase in its value.

Altcoins trail Bitcoin

Bitcoin has declined in value throughout the year, while altcoin market capitalization has decreased by more than 46% since its peak in 2025.

The market value of XRP and Zcash, and Algorand increased because investors showed rising interest in tokenization and privacy protection, and regulatory backing.

DeepSeek AI predicts SOL and XRP, and SUI will experience limited growth during 2026.

The 2025 market selection took place because Bitcoin maintained its liquidity throughout the entire year.

The crypto market sector received institutional investment and regulatory control during 2025, yet it did not lead to a wide altcoin market expansion.

TradingView data shows Bitcoin’s pullback of approximately 7% year-to-date alongside a deeper than 46% drawdown for the altcoin market from its peak.

The system produced better results than projects that included particular storytelling components.

The market value of XRP increased because of reduced legal restrictions, which Zcash received from privacy advocacy support, and Algorand tokenization news caused its price to rise.

The highest position of XRP resulted from its efforts to follow regulations and its achievement of getting ETF approval.

XRP surged over 35% in July and hit a yearly high of $3.60 on July 23, an eight-fold gain from the previous year’s low of $0.43 on Aug. 5, 2024, according to TradingView.

The dispute between Ripple and the US Securities and Exchange Commission reached its peak on August 8 when both parties submitted a joint request to the court for dismissal of all outstanding appeals and cross-appeals, which they would handle independently for their respective expenses and legal fees.

The market currently supports assets that Mavryk Dynamics, through Alex Davis, identifies as assets that regulators can detect and institutions can study, and compliance teams can authenticate.

The debut of the Canary Capital XRP ETF on Nov. 13 added to that signal. Isaac Joshua from Gems Launchpad explains that XRP performed better than other coins because of its clean regulatory environment and rising institutional investment, and evidence of practical applications in the real world.

The first 11 days of XRP ETF market operation brought in $756 million of net positive investment.

The market returned to focus on privacy concerns, which led to Zcash price appreciation.

The search volume for Zcash on Coinbase reached its peak in mid-November when it surpassed Bitcoin and XRP to become the most popular asset.

TradingView data shows Zcash rose over 12-fold from a yearly low of $48 to a high of $744 on Nov. 7, a month after a record $19 billion market crash at the beginning of October.

CoinStats CEO Narek Gevorgyan stated that privacy-focused assets outperformed other assets because users needed financial privacy during the time when KYC/AML regulations tightened, and transaction monitoring systems began their active operation.

Shielded-transaction usage rose as the amount of ZEC held in shielded addresses climbed to about 4.5 million from 1.7 million in 2025 as of Nov. 25, with 1 million tokens transferred in three weeks.

The Zcash block reward reduction to 1.5625 ZEC from 3.125 ZEC on November 23, 2024, led to reduced daily token creation, which dropped to 1,800 tokens from its previous level of 3,600 tokens.

Zcash did not surpass its all-time high of $5,941 from Oct. 29, 2016.

The Algorand platform attracted more users because of tokenization news, yet its token value stayed at a low point.

ALGO rose about 48% in three weeks from $0.33 at the end of December 2024 to above $0.49 on Jan. 17, per TradingView.

On Jan. 21, Algorand partnered with Enel Group to let Italian residents buy fractional shares of solar and wind installations via tokenized Energy Utility Tokens.

Bitget Wallet’s Lacie Zhang stated that these integrations create a positive outlook for the chain’s future but Bitcoin’s market control, together with worldwide economic conditions, pushed down cryptocurrency values.

Staked ALGO grew 28% quarter-over-quarter to surpass 1.95 billion tokens in the second quarter of 2025, according to Messari.

The Algorand platform released AlgoKit 3.0 during March 2025, and it will introduce AlgoKit 4.0 in early 2026 to provide developers with composable smart contract libraries and Rust and Swift, and Kotlin programming support.

The DeepSeek AI system makes a cautious forecast about what will occur in the initial part of 2026.

The market sentiment has decreased for all major tokens because Solana and XRP, and Sui have each lost 35% 11% and 64.5% of their value since the beginning of the year.

The DeepSeek application, which China identifies as its leading generative AI system, presented bearish market predictions for the first part of 2026.

The model presented Solana through a chart which showed its price making successive lower highs and lower lows.

The price support level exists at $91.5, while a market breakdown would lead to a price range between $70 and $80 before reaching the resistance level at $135.

Its base case is a move toward the $75–$110 range as “the path of least resistance is down. ”

The DeepSeek model predicts XRP will experience a major price increase because of its legal triumph, which will start at $3.5.

It flagged resistance at the 200-day EMA near $2.37 and at $2.90, with $1 as the main psychological support.

The model predicts that prices will stay within the range of $1.10 to $2.40 during the first quarter of 2026, while it rules out any price increase above $3 at that time.

The DeepSeek platform showed Sui with $932 million worth of total value locked, but it also showed upcoming token unlock events, which could lead to market instability.

The research established $1.33 as a crucial support level because prices would achieve their most recent 14-month low when they drop below this point.

The stock price needs to rise above $1.70 to reach $2.10 during the first quarter of 2026.

The base case of this situation demonstrates that prices will either decrease to $0.80 or experience a minimal price rise to $1.50 before the market experiences a “dead cat bounce.”

What to watch in 2026

The market in 2025 preferred projects that provided specific rules and unique functionality and connections to physical systems.

The present market conditions indicate that investors now focus on core investment elements instead of the previous altcoin market boom, which some investors still expect to occur.

The main issue for 2026 involves whether organizations will use their need for privacy solutions and tokenization testing to establish permanent market dominance.

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