U.S. index futures are indicating a positive start on Tuesday, with stocks expected to recover after significant declines over the past two trading sessions. Investors appear ready to purchase stocks at lower valuations following this recent downturn, which pushed the major indices near the lows witnessed earlier in December.
As the year-end approaches, some traders may engage in "window-dressing" strategies, aiming to enhance their portfolio performance. Despite recent market softness, major indices are anticipated to report notable gains for 2024. Notably, the Nasdaq has surged nearly 30 percent this year, while the Dow and the S&P 500 have climbed 13 percent and over 20 percent, respectively, marking the S&P's second consecutive annual gain exceeding 20 percent.
Although trading activity might decrease towards the session's end with the approach of New Year's Eve, Monday saw stocks rally slightly after plunging sharply in early trading. Despite this recovery, markets closed firmly negative, adding to Friday's steep losses. The Dow rebounded from an over 700-point drop, finishing down 418.48 points or 1 percent at 42,573.73. Similarly, the Nasdaq fell 235.25 points or 1.2 percent to 19,486.78, while the S&P 500 declined 63.90 points or 1.1 percent to 5,906.94.
The extended sell-off on Friday prompted some traders to lock in profits before year-end, with technology stocks initially leading the decline but closing slightly better. The Philadelphia Semiconductor Index reflected this weakness with a 1.9 percent drop. Outside of tech, gold stocks faced pressure as falling gold prices pulled the NYSE Arca Gold Bugs Index down by 1.8 percent. Shares in pharmaceuticals, healthcare, and retail sectors also took a downturn along with the broader market.
Boeing's stock experienced additional pressure, dropping 2.3 percent, following an order by South Korea's Transport Ministry to inspect B737-800 aircraft after a recent Jeju Air incident. The day's sell-off may have been exaggerated due to reduced trading volumes as markets anticipate the New Year's Day public holiday.
In economic developments, the National Association of Realtors reported a significant rise in pending home sales in November, with their index climbing 2.2 percent to 79.0, surpassing expectations. This marks the fourth consecutive month of growth, reaching the highest level since February 2023.
**Commodity and Currency Markets**
Crude oil futures have risen slightly, gaining $0.06 to reach $71.05 a barrel, after previously increasing by $0.39. Gold futures, after declining $13.80 to $2,618.10, have seen a rise of $9.30 to $2,627.40 an ounce. On the currency front, the U.S. dollar is trading at 156.90 yen, up slightly from the previous day's 156.84 yen. Against the euro, the dollar is slightly reduced, valued at $1.0395.
**Asia**
Asian stocks experienced declines amid the low volume on Tuesday due to holidays in Japan and South Korea. South Korea's market was closed for New Year's Eve, and Japan's markets will remain closed until January 6. Markets in Australia, New Zealand, Singapore, and Hong Kong also closed early for the holiday.
The U.S. dollar remained solid, poised to conclude 2024 with a remarkable increase of over 6.5 percent, marking its strongest performance since 2015. Gold prices remained stable and are on track for their best year in a decade with a gain exceeding 26 percent. While oil prices rose in Asian trading, they were set for an annual decline.
China's Shanghai Composite Index fell 1.6 percent to 3,351.76 following reports of slower growth in factory activity for December. Meanwhile, Hong Kong's Hang Seng Index posted a modest gain, finishing at 20,059.95.China's manufacturing Purchasing Managers' Index (PMI) experienced a slight decline in December, registering at 50.1 compared to 50.3 in November. Conversely, the non-manufacturing PMI exceeded expectations, rising to 52.2 from the previous month’s 50.0, indicating a strengthening in that sector.
Attention has also turned to U.S.-China relations following the U.S. Treasury Department's identification of a cyber breach attributed to a Chinese state-sponsored actor, which allowed unauthorized access to several of its workstations.
In Australia, markets concluded the year on a subdued note, with significant losses led by the banking, mining, and discretionary consumer sectors. The benchmark S&P/ASX 200 Index dropped 0.9% to close at 8,159.10, the lowest since December 20, while the broader All Ordinaries Index decreased by 0.9%, settling at 8,420.50.
Similarly, in New Zealand, the S&P/NZX-50 Index fell by 1.2%, ending at 13,110.74.
### Europe
European stock markets mostly trended upward, albeit in low-volume holiday trading on Tuesday. Several major markets, including those in Germany, Italy, and Switzerland, remained closed or operated half-days. Earlier, official reports confirmed Chinese factory activity grew at a reduced rate in December amidst escalating trade risks.
On the continent, the French CAC 40 Index saw a 0.9% gain, while the UK's FTSE 100 Index advanced by 0.6%. Wizz Air Holdings saw minimal gains after striking a commercial support deal with Pratt & Whitney to address engine issues. Meanwhile, British distribution and outsourcing company Bunzl’s shares declined following the announcement of its £200 million share buyback program commencing January 2.
Energy firm Kistos Holdings experienced a significant rise following the announcement that James Thomson is set to assume the role of Chief Financial Officer and join the Board of Directors starting January 1.
### U.S. Economic News
Standard & Poor's is poised to release its report on home prices across major U.S. metropolitan areas for October, scheduled at 9 am ET.
The material has been provided by InstaForex Company - www.instaforex.com
As the year-end approaches, some traders may engage in "window-dressing" strategies, aiming to enhance their portfolio performance. Despite recent market softness, major indices are anticipated to report notable gains for 2024. Notably, the Nasdaq has surged nearly 30 percent this year, while the Dow and the S&P 500 have climbed 13 percent and over 20 percent, respectively, marking the S&P's second consecutive annual gain exceeding 20 percent.
Although trading activity might decrease towards the session's end with the approach of New Year's Eve, Monday saw stocks rally slightly after plunging sharply in early trading. Despite this recovery, markets closed firmly negative, adding to Friday's steep losses. The Dow rebounded from an over 700-point drop, finishing down 418.48 points or 1 percent at 42,573.73. Similarly, the Nasdaq fell 235.25 points or 1.2 percent to 19,486.78, while the S&P 500 declined 63.90 points or 1.1 percent to 5,906.94.
The extended sell-off on Friday prompted some traders to lock in profits before year-end, with technology stocks initially leading the decline but closing slightly better. The Philadelphia Semiconductor Index reflected this weakness with a 1.9 percent drop. Outside of tech, gold stocks faced pressure as falling gold prices pulled the NYSE Arca Gold Bugs Index down by 1.8 percent. Shares in pharmaceuticals, healthcare, and retail sectors also took a downturn along with the broader market.
Boeing's stock experienced additional pressure, dropping 2.3 percent, following an order by South Korea's Transport Ministry to inspect B737-800 aircraft after a recent Jeju Air incident. The day's sell-off may have been exaggerated due to reduced trading volumes as markets anticipate the New Year's Day public holiday.
In economic developments, the National Association of Realtors reported a significant rise in pending home sales in November, with their index climbing 2.2 percent to 79.0, surpassing expectations. This marks the fourth consecutive month of growth, reaching the highest level since February 2023.
**Commodity and Currency Markets**
Crude oil futures have risen slightly, gaining $0.06 to reach $71.05 a barrel, after previously increasing by $0.39. Gold futures, after declining $13.80 to $2,618.10, have seen a rise of $9.30 to $2,627.40 an ounce. On the currency front, the U.S. dollar is trading at 156.90 yen, up slightly from the previous day's 156.84 yen. Against the euro, the dollar is slightly reduced, valued at $1.0395.
**Asia**
Asian stocks experienced declines amid the low volume on Tuesday due to holidays in Japan and South Korea. South Korea's market was closed for New Year's Eve, and Japan's markets will remain closed until January 6. Markets in Australia, New Zealand, Singapore, and Hong Kong also closed early for the holiday.
The U.S. dollar remained solid, poised to conclude 2024 with a remarkable increase of over 6.5 percent, marking its strongest performance since 2015. Gold prices remained stable and are on track for their best year in a decade with a gain exceeding 26 percent. While oil prices rose in Asian trading, they were set for an annual decline.
China's Shanghai Composite Index fell 1.6 percent to 3,351.76 following reports of slower growth in factory activity for December. Meanwhile, Hong Kong's Hang Seng Index posted a modest gain, finishing at 20,059.95.China's manufacturing Purchasing Managers' Index (PMI) experienced a slight decline in December, registering at 50.1 compared to 50.3 in November. Conversely, the non-manufacturing PMI exceeded expectations, rising to 52.2 from the previous month’s 50.0, indicating a strengthening in that sector.
Attention has also turned to U.S.-China relations following the U.S. Treasury Department's identification of a cyber breach attributed to a Chinese state-sponsored actor, which allowed unauthorized access to several of its workstations.
In Australia, markets concluded the year on a subdued note, with significant losses led by the banking, mining, and discretionary consumer sectors. The benchmark S&P/ASX 200 Index dropped 0.9% to close at 8,159.10, the lowest since December 20, while the broader All Ordinaries Index decreased by 0.9%, settling at 8,420.50.
Similarly, in New Zealand, the S&P/NZX-50 Index fell by 1.2%, ending at 13,110.74.
### Europe
European stock markets mostly trended upward, albeit in low-volume holiday trading on Tuesday. Several major markets, including those in Germany, Italy, and Switzerland, remained closed or operated half-days. Earlier, official reports confirmed Chinese factory activity grew at a reduced rate in December amidst escalating trade risks.
On the continent, the French CAC 40 Index saw a 0.9% gain, while the UK's FTSE 100 Index advanced by 0.6%. Wizz Air Holdings saw minimal gains after striking a commercial support deal with Pratt & Whitney to address engine issues. Meanwhile, British distribution and outsourcing company Bunzl’s shares declined following the announcement of its £200 million share buyback program commencing January 2.
Energy firm Kistos Holdings experienced a significant rise following the announcement that James Thomson is set to assume the role of Chief Financial Officer and join the Board of Directors starting January 1.
### U.S. Economic News
Standard & Poor's is poised to release its report on home prices across major U.S. metropolitan areas for October, scheduled at 9 am ET.
The material has been provided by InstaForex Company - www.instaforex.com