Global Markets Surge Ahead of Christmas
As the world prepares for the festive season, global markets are experiencing a welcome boost. Chinese markets led the charge, with gains of over 1% following a promise from the country’s finance minister to increase government spending in the coming year.
European Markets Open Strong
In early European trading, Britain’s FTSE 100 rose 0.4% to 8,132.66, while the CAC 40 in Paris added 0.5% to 7,311.46. Markets in Germany, however, remained closed for the holiday.
Asian Markets See Mixed Results
Japan’s benchmark Nikkei 225 slipped 0.3% to 39,036.85, despite Honda’s shares surging 12.2% after the Japanese automaker announced a massive share buyback. The company is also seeking a merger with its rival Nissan, which saw its shares rise 6%. The Hang Seng in Hong Kong added 1.1% to 20,098.29, and the Shanghai Composite index was up 1.3% at 3,393.53.
Chinese Government Pledges Increased Spending
Chinese Finance Minister Lan Fo’an announced that Beijing will increase the fiscal deficit in 2025 and step up spending to ensure local governments can deliver essential services to the public. This move is aimed at alleviating concerns over the slowing growth of the world’s second-largest economy.
South Korea’s Kospi Loses Ground
South Korea’s Kospi lost 0.1% to 2,440.52, following a report that consumer sentiment dropped sharply in December. This decline comes after President Yoon Suk Yeol declared martial law and was subsequently impeached by lawmakers.
Other Asian Markets See Gains
Australia’s S&P/ASX 200 advanced 0.2% to 8,220.90, while Taiwan’s Taiex gained 0.1%. Shares in Taiwan Semiconductor Manufacturing Co., the world’s biggest computer chip maker, hit a record high.
US Markets Closed for Christmas
Markets in the US will close at 1 p.m. Eastern on Tuesday for Christmas Eve and will remain closed on Wednesday for Christmas. On Monday, the S&P 500 ended 0.7% higher at 5,974.07, while the Dow Jones Industrial Average eked out a 0.2% gain to 42,906.95.
Consumer Confidence Takes a Hit
The Conference Board reported that its consumer confidence index fell to 104.7 from 112.8 in November, missing Wall Street’s expectations. This unexpected decline follows several strong economic reports last week, including a report showing the overall economy grew at a 3.1% annualized rate during the summer.
Economic Reports Ahead
Wall Street is looking forward to several economic reports this week, including a weekly update on unemployment benefits on Thursday. Inflation concerns and shifting economic policies under President-elect Donald Trump are adding to uncertainties heading into 2025.
Commodities and Currencies
In other dealings early Tuesday, U.S. benchmark crude oil picked up 48 cents to $69.72 per barrel, while Brent crude, the international standard, was up 50 cents at $72.82. The dollar fell to 157.04 Japanese yen from 157.17 yen, and the euro fell to $1.0400 from $1.0405.
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