Holiday Trading Brings Mixed Results to Global Markets
As the festive season continues, U.S. markets are experiencing a sluggish start to the day, with futures for the S&P 500 and the Dow Jones Industrial Average dipping 0.4% in early trading. This follows a day of market closure on Wednesday for the Christmas holiday.
Economic Indicators Take Center Stage
Today, investors will be keeping a close eye on the government’s weekly update on U.S. unemployment benefit applications. While this data may not have a significant impact on the market, it will provide valuable insights into the state of the economy.
Netflix Steals the Show
Meanwhile, Netflix is basking in the glory of its successful broadcast of back-to-back NFL matchups on Christmas, featuring a show-stopping 13-minute performance by Beyoncé at halftime. The glitch-free event became the second-most popular live title ever for the streaming service, according to NFL Media.
Historical Trends Suggest Year-End Boost
Despite typically lower trading volumes, U.S. markets have historically experienced a boost at year’s end. Since 1950, the last five trading days of each year, plus the first two in the new year, have brought an average gain of 1.3%. This trend may provide some optimism for investors in the coming days.
Market Performance and Trump’s Impact
So far this month, the U.S. stock market has lost some of its gains since President-elect Donald Trump’s win on Election Day, which had raised hopes for faster economic growth and more lax regulations. However, worries have risen that Trump’s preference for tariffs and other policies could lead to higher inflation, a bigger U.S. government debt, and difficulties for global trade. Despite these concerns, the U.S. market remains on pace to deliver strong returns for 2024, with the benchmark S&P 500 up 26.6% so far this year.
Global Markets React
In Japan, the Nikkei 225 index surged 1.1% to 39,568.06, driven by strong gains in retailers and tourism-related stocks after Japan agreed to ease visa conditions for Chinese tourists. Automakers also saw significant gains. In contrast, South Korea’s Kospi slipped 0.4% to 2,429.67, while the Taiex in Taiwan gained 0.1%. The Shanghai Composite index edged 0.1% higher, to 3,398.08.
Commodity Prices and Currency Fluctuations
U.S. benchmark crude oil rose 40 cents to $70.50 per barrel, while Brent crude, the international standard, picked up 36 cents to $73.53 per barrel. The dollar rose to 157.65 Japanese yen from 157.19 yen, and the euro fell to $1.0398 from $1.0410.
Leave a Reply