Global Stock Markets See Mixed Trends as Year-End Volatility Persists

December 31, 2024 12:00 AM AEDT | By Team Kalkine Media

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Global Stock Markets See Mixed Trends as Year-End Volatility Persists — Image source: shutterstock

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Highlights

- Asian and US markets experienced mixed performance amid economic data and policy expectations.

- Elevated yields and profit-taking weighed on US equities, affecting global indices.

- Asian markets reflected varied trends, with China’s PMI data supporting gains in the Hang Seng Index.

The US equity markets extended losses as higher Treasury yields and policy concerns continued to pressure stocks. The Nasdaq Composite fell over one percent, mirroring declines in the S&P 500 and Dow Jones. Persistent selling in cryptocurrency-related stocks added to market woes, with MicroStrategy (NASDAQ:MSTR) tumbling by over eight percent, and Marathon Holdings (NASDAQ:MARA) dropping by more than six percent as Bitcoin retreated further from its December peak.

Economic data bolstered the likelihood of a tighter monetary policy. Pending home sales climbed for a consecutive month, indicating sustained housing demand, while the Dallas Fed Manufacturing Index also showed unexpected growth. These data points reinforced market expectations of a more hawkish Federal Reserve heading into the new year.

Asian Markets React to US Trends

Asian markets displayed mixed results as investors digested global cues. The Hang Seng Index advanced, recovering from early losses on the back of China’s private sector PMI data. Notably, the non-manufacturing PMI improved to 52.2, supporting gains in real estate and technology sectors. Alibaba (HKG:9988) led the tech recovery, while Baidu (HKG:9888) declined marginally.

In contrast, Japan’s Nikkei Index fell by nearly one percent. A strengthening Japanese Yen dented sentiment for export-driven companies. Key technology firms like Tokyo Electron (TYO:8035) and Softbank Group (TYO:9984) saw modest declines. Nissan Motor (TYO:7201) faced a sharp drop amid merger speculation, leading sectoral losses.

Australian Market Performance

The ASX 200 Index mirrored US market trends, declining amid weakness across banking, mining, and tech stocks. Commonwealth Bank of Australia (ASX:CBA) and ANZ (ASX:ANZ) were among the notable decliners, each slipping close to one percent as rising US yields deterred interest in financials. Gold prices also weighed on miners, with Northern Star Resources (ASX:NST) losing ground.

Key Takeaways

Global markets remained volatile as the year-end approached, shaped by profit-taking, economic data, and monetary policy outlooks. In Asia, China’s positive PMI data offered some relief, while other regions saw more cautious trends, reflecting global uncertainties. Investors are expected to monitor geopolitical developments and policy announcements for further market direction.

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