Global Markets Experience Mixed Trading
As the world’s financial markets reopened after a holiday break, investors were met with a mixed bag of performances. In Europe, France’s CAC 40 index surged nearly 1% to 7,478.96, while Germany’s DAX rose 0.6% to 20,263.87. Britain’s FTSE 100, however, remained largely flat at 8,227.05.
Asian Markets Catch Up
In Asia, Japan’s benchmark Nikkei 225 index slipped 1.8% to finish at 38,474.30, following a holiday on Monday. The country’s Finance Ministry reported a significant 54.5% increase in its current account surplus, reaching 3.4 trillion yen ($21 billion) in November. This news was overshadowed by the decline in Nippon Steel Corp. stocks, which fell 1.1% in Tokyo trading.
US Steel Rallies
Meanwhile, shares of U.S. Steel rallied 6.1% overnight after the Biden administration extended the deadline for the company to unwind its proposed acquisition by Japan’s Nippon Steel. According to Yeap Jun Rong, market strategist at IG, “After a holiday break, Japan’s markets are playing catch-up following last week’s market selloff.”
China’s Pledge Boosts Markets
Hong Kong’s Hang Seng rose 1.8% to 19,219.78, while the Shanghai Composite surged 2.5% to 3,240.94. The smaller market in Shenzhen jumped 4.2%. The China Securities Regulatory Commission’s pledge to sustain a stable recovery of the securities market lifted investor sentiment, outlining key priorities for 2025.
Other Markets
Australia’s S&P/ASX 200 added 0.5% to 8,231.00, while South Korea’s Kospi edged up 0.3% to 2,497.40. On Monday, the S&P 500 rose 0.2% after erasing an earlier fall of 0.9%. The Dow Jones Industrial Average climbed 358 points, or 0.9%, while declines for Big Tech stocks dragged the Nasdaq composite to a loss of 0.4%.
Interest Rate Expectations
Stocks have been under pressure in recent weeks as traders reduce expectations for interest rate relief from the Federal Reserve. With inflation remaining above the Fed’s 2% target, questions are growing about whether the Fed will deliver even a single rate cut in 2025.
Commodities and Currencies
In other dealings early Tuesday, benchmark U.S. crude lost 10 cents to $78.72 a barrel, while Brent crude fell 23 cents to $80.78 a barrel. The U.S. dollar edged up to 157.70 Japanese yen from 157.48 yen, and the euro cost $1.0266, down from $1.0245.
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