European stock markets are expected to kick off Thursday's trading session with mixed results, as investors closely examine the implications of the U.S. interest rate forecast and the anticipated economic policies under President-elect Donald Trump.
Upon assuming office on January 20, Trump is set to introduce a 25 percent tariff on imports from Canada and Mexico, along with a supplementary 10 percent tariff on imports from China, escalating existing trade tensions.
In the U.S., stock futures showed signs of optimism as Tesla is scheduled to announce its fourth-quarter and full-year production and delivery figures later today.
Meanwhile, most Asian markets experienced declines, with Tokyo remaining closed due to New Year festivities. Chinese and Hong Kong markets faced significant reductions, driven by uncertainties regarding future U.S.-China relations under Trump's forthcoming administration. Concerns loom over the potential deterioration of bilateral ties in his second term.
In China, an underwhelming performance in manufacturing was evident, as the Caixin/S&P Global manufacturing PMI for December dipped to 50.5 from the previous month’s 51.5, falling short of analysts’ expectations. This has heightened calls for additional policy measures to stabilize the economy.
Gold saw a slight upturn in Asian markets, benefiting as the U.S. dollar retreated from recent multi-year highs reached earlier in the week. Concurrently, oil prices moved upward following industry data indicating a greater-than-anticipated reduction in U.S. crude inventories.
In 2024, the dollar index increased by 7 percent, while the yield on the 10-year U.S. Treasury note surged by over 60 basis points, marking its most substantial annual gain in two years. Conversely, crude oil prices declined by 3 percent for the second consecutive year, influenced by continuous apprehensions over global oil demand given China's economic slowdown and the ambiguous direction of interest rates.
Gold, on the other hand, recorded its best annual gain in a decade, with a 26 percent increase fueled by robust central bank purchases and intensifying geopolitical tensions.
In the U.S., the S&P 500 index soared by 23 percent in 2024, marking its fifth increase in six years and exceeding the 20 percent growth threshold for the second consecutive year. The Nasdaq index surged by nearly 30 percent, while the Dow Jones Industrial Average rose by 13 percent over the year.
European markets, however, displayed more modest gains. The Euro Stoxx 50 index posted a 6.5 percent increase, and the U.K.'s FTSE 100 advanced by 5.4 percent in 2024.
The material has been provided by InstaForex Company -
www.instaforex.com
