Global Markets Experience Mixed Performance Amid Holiday Trading
As the year draws to a close, stock markets around the world are experiencing a mixed bag of performances. In the United States, the S&P 500 is down 0.6%, while the Dow Jones Industrial Average has fallen 209 points, or 0.5%. The Nasdaq composite is also feeling the pinch, dropping 0.9%. Despite this, the major indexes are still on track to close the holiday-shortened week with gains, with the S&P 500 poised to notch its second consecutive annual gain of more than 20%.
Asian Markets See Gains and Losses
In Asia, Japan’s benchmark index surged 1.8% to 40,285.25, thanks to a weak yen against the U.S. dollar. This boost in profits for exporters and companies with big operations overseas has led to a rise in shares of automakers and other major exporters. Meanwhile, South Korea’s Kospi sank 1% to 2,410.35 after the country’s main opposition party voted to impeach the country’s acting leader.
European Markets Reopen with Mixed Results
In Europe, markets reopened after the Christmas holidays with mixed results. Germany’s DAX edged 0.1% higher to 19,863.29, while the CAC 40 in Paris was up 0.4% at 7,308.99. Britain’s FTSE 100, on the other hand, inched 0.1% lower, to 8,147.00.
Economic Reports and Trading Volume
Trading volume remains light, with many investors taking a break for the holidays. According to Stephen Innes of SPI Asset Management, “U.S. equities are stuck in a holding pattern as trading volumes dry up following the holiday break.” Despite this, traders are keeping a close eye on economic reports, including updates on pending home sales and home prices, as well as snapshots of manufacturing activity.
Commodities and Currencies
In other dealings, U.S. benchmark crude oil gained 23 cents to $69.85 per barrel, while Brent crude advanced 18 cents to $73.03 per barrel. The euro slipped to $1.0412 from $1.0424.
Retailers and Unemployment
As the holiday season comes to a close, retailers are hoping for a strong finish. The day after Christmas traditionally ranks among the top 10 biggest shopping days of the year, as consumers go online or rush to stores to cash in gift cards and raid bargain bins. Meanwhile, the Labor Department reported that U.S. applications for unemployment benefits held steady last week, though continuing claims rose to the highest level in three years.
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