European stock markets are anticipated to open with varied performances on Monday, with a particular emphasis on technology stocks. Investors are closely monitoring remarks from Nvidia CEO Jensen Huang at the CES 2025 event in Las Vegas today, where artificial intelligence is poised to take center stage.
Asian markets presented a mixed picture, as South Korea's Kospi index surged nearly 2% following a court decision to dismiss an appeal against an arrest warrant for the impeached president Yoon Suk Yeol. Meanwhile, Japan's Nikkei saw a decline of about 1.5% as it kicked off trading for the new year.
In China and Hong Kong, market sentiment was subdued due to ongoing U.S.-China trade tensions and ambiguity regarding stimulus policies, despite promising data showing China's services activity grew at its fastest rate in seven months in December.
The U.S. dollar showed mixed movements against major currencies after favorable outcomes in the U.S. House Speaker elections. Notably, the Chinese yuan fell to a 16-month low, disregarding the central bank's efforts to maintain a stronger guidance and assurances of currency stability.
Oil prices experienced a slight dip but remained near their highest levels since October. Conversely, gold prices edged lower as investors await forthcoming U.S. economic data this week, searching for further insights into the Federal Reserve's interest rate outlook.
Key economic indicators this week include the U.S. Labor Department's closely monitored monthly jobs report, reports on services sector activity, consumer sentiment data, and the release of the latest Fed meeting minutes.
Federal Reserve Governor Lisa Cook is scheduled to deliver remarks at a law and microeconomics conference at the University of Michigan. This follows comments from Richmond Fed President Tom Barkin on Friday, who confirmed his belief that current interest rate levels are sufficiently restrictive to reduce inflation by 2025.
In Europe, attention is turning to German inflation figures, the Eurozone Sentix Investor Confidence survey results, and the Eurozone final Composite PMI data, which are expected to draw interest later in the day.
U.S. stock markets closed with sharp gains on Friday after a rocky start to the year. Major technology stocks soared amid predictions of benefiting from continued investment in artificial intelligence. Bond yields eased slightly, reflecting data indicating that U.S. manufacturing activity contracted at a more moderate pace in December.
The Nasdaq Composite, heavily weighted towards tech stocks, rose 1.8%, while the S&P 500 gained 1.3%, breaking a five-day losing streak. The Dow also saw an increase, adding 0.8%.
European stock markets ended last week on a weaker note, concluding a week shortened by holidays. Sectors such as luxury, automotive, and mining led the declines following reports that China plans to significantly increase funding from ultra-long treasury bonds in 2025.
The pan-European STOXX 600 fell by 0.5%. Germany's DAX index decreased by 0.6%, the UK's FTSE 100 dropped 0.4%, and France's CAC 40 declined by 1.5%.
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