The past weekend witnessed dramatic geopolitical and economic events, adding to the turbulence of an already volatile year. From the collapse of the Assad regime in Syria to South Korea’s impeachment drama and new U.S. restrictions on TikTok, these developments may have lasting implications for global markets and politics.
Key Highlights:
Syria’s Assad Regime Falls After Five Decades
In a historic turn of events, the Assad regime, which ruled Syria for over 50 years, has collapsed. Syrian President Bashar Al-Assad reportedly fled to Russia with his family after rebel forces advanced into Damascus. Russian state news agencies Tass and RIA cited Kremlin sources confirming that Assad has been granted asylum.
The fall of the Assad government signals the end of an era for Syria and raises questions about the nation’s future amid ongoing conflict and geopolitical power struggles.
South Korea’s President Survives Impeachment Vote
South Korean President Yoon Seok Yeol narrowly survived an impeachment vote. While all 192 opposition lawmakers supported the motion, the measure failed to meet the required threshold of 200 votes after members of the ruling People’s Power Party largely boycotted the vote.
The vote comes amidst heightened political tensions following Yoon’s declaration of martial law, the first in South Korea in over 40 years. The decision to impose martial law was prompted by growing civil unrest.
TikTok Faces Forced Sale or Ban in the U.S.
A federal appeals court upheld legislation requiring ByteDance, the Chinese parent company of TikTok, to sell the app by next month or face an effective U.S. ban. The court rejected TikTok’s argument that the law violates the First Amendment rights of its 170 million U.S. users.
TikTok announced plans to appeal to the Supreme Court in an effort to overturn the decision. This move highlights the ongoing tech tensions between the U.S. and China, with potential ripple effects for global digital markets.
Markets in Flux Amid Optimistic U.S. Economic Data
U.S. markets sent mixed signals on Friday following the release of November jobs data. While the S&P 500 rose 0.25% to 6,090.27 and the Nasdaq advanced 0.81% to 19,859.77, the Dow Jones Industrial Average fell 0.28% to 44,642.52.
Traders remain optimistic about the Federal Reserve’s upcoming decision on December 18, with an 85% likelihood of a 25-basis-point rate cut expected to fuel a year-end rally.
China’s EV Market Poised for Growth
As 2024 ends, Chinese electric vehicle (EV) manufacturers are gearing up for a dominant year in 2025. With traditional foreign automakers losing market share in China, domestic companies are set to lead the world’s second-largest automotive market.
The Bigger Picture: A Tumultuous Year Closes on a High-Stakes Note
Quoting Russian revolutionary Vladimir Lenin, “There are weeks when decades happen,” and this year’s final weeks appear determined to validate that sentiment.
The collapse of Assad’s regime, Yoon’s survival in South Korea, and TikTok’s legal battle add to a week already marked by France’s government collapsing after a no-confidence vote. The cumulative political uncertainty poses challenges for markets accustomed to stability during the year-end rally.
Still, traders are betting on the U.S. Federal Reserve to play the role of a “Santa Claus,” delivering a much-anticipated rate cut. However, looming uncertainties—such as the policy agenda of President-elect Donald Trump—cast a shadow over 2025, leaving markets braced for further turbulence.
