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LONDON STOCKS RALLY ON FINAL DAY OF YEAR AS FTSE 100 HITS NEW HIGH

HomeLONDON STOCKS RALLY ON FINAL DAY OF YEAR AS FTSE 100 HITS NEW HIGH

LONDON STOCKS RALLY ON FINAL DAY OF YEAR AS FTSE 100 HITS NEW HIGH

LONDON STOCKS RALLY ON FINAL DAY OF YEAR AS FTSE 100 HITS NEW HIGH

Summary The FTSE 100 rose on its final trading day in 2024, driven by mining and oil stocks. The London Stock Exchange is set to close at 12:30 PM on Tuesday before the New Year's holiday on Wednesday. US stock futures rallied into the afternoon, with S&P 500 (ES=F) futures contracts up 0.3% and Dow (YM=F) futures rising 0.2%. Market sentiment remains cautious ahead of 2025.

Markets Close Out 2024 on a Positive Note

The FTSE 100 (^FTSE) hovered just below the flatline at the opening bell before rallying 0.6% into the afternoon, driven by mining and oil stocks such as Endeavour (EDV.L) and Shell (SHEL.L). The domestically-focused FTSE 250 (^FTMC) was 0.8% higher. Commodity stocks were higher following favorable manufacturing data for China in December.

The rally in the FTSE 100 was also supported by retailer JD Sports (JD.L), which saw its shares rise by 1.2%. The company's strong performance has been attributed to its successful expansion into new markets and its ability to adapt to changing consumer trends. Despite the positive close, some analysts are warning of a challenging year ahead for the FTSE 100, citing concerns over global economic growth and the impact of Brexit on UK businesses.

US Stock Futures Rally

US stock futures rallied into the afternoon, with S&P 500 (ES=F) futures contracts up 0.3% and Dow (YM=F) futures rising 0.2%. The tech-heavy Nasdaq (NQ=F) was also higher, up 0.3%. The rally in US stock futures has been driven by a combination of factors, including strong earnings reports from major companies and expectations of further monetary policy easing by the Federal Reserve.

The rise in US stock futures has also been attributed to the ongoing bull market, which has seen stocks continue to reach new highs despite concerns over global economic growth. However, some analysts are warning that the rally may be unsustainable, citing concerns over valuations and the impact of rising interest rates on company profits.

Markets React to China Data

Markets in Asia reacted cautiously to the release of Chinese manufacturing data for December, which showed a slowdown in growth. The data suggested that Chinese stimulus measures had helped support the economy in the final quarter of 2024, but at a slower pace than expected.

The Hang Seng (^HSI) in Hong Kong rose 0.3% following the release of the data, while the Nikkei (^N225) in Japan fell 1%. The KOSPI (^KS11) in South Korea was also lower, down 0.2%.

Bitcoin Cautiously Higher

Bitcoin (BTC-USD) ticked cautiously higher on its final day of trading for 2024, after a rollercoaster year that saw it smash through previous all-time highs. The largest digital asset by market cap was trading at around $93,800 by mid-morning in London.

Over the last month, Bitcoin has been volatile, heading to all-time highs past the $106,000 mark as markets anticipate US president-elect Donald Trump's incoming pro-crypto cast of advisers. During the election cycle, Trump made several pledges in line with boosting the crypto industry.

Oil Prices See Moderate Gains

Oil prices saw moderate gains on Tuesday, driven by strong economic data from China and a weakening US dollar. Brent crude futures rose by 0.7%, trading at $74.48 per barrel, while US West Texas Intermediate (WTI) crude climbed 0.6%, settling at $71.42.

China's new measures aimed at stimulating economic activity boosted market sentiment and fueled expectations of increased demand for oil. The announcement of a record fiscal stimulus package worth 3 trillion yuan ($411bn/£327bn) further enhanced optimism about the country's future oil needs.

US Treasury Breached by State-Sponsored Chinese Hackers

The major news coming out of the US overnight was that the Treasury Department has been hacked by a Chinese state-sponsored actor through a third-party software service provider. The agency sent a letter to Congress on Monday describing it as "a major cybersecurity incident".

BeyondTrust Inc informed them that a hacker had accessed a key used by the vendor to secure a cloud-based service used to remotely provide technical support for Treasury Departmental Offices (DO) end users.

Asian Markets Mixed

Major Asian indices tracked caution on Wall Street on Tuesday, closing out the year mostly lower. Japanese stocks fell, with the Nikkei (^N225) down 1% by the end of the session. The index is now closed for the rest of the week.

South Korea's KOSPI (^KS11) was also 0.2% lower. The Hang Seng (^HSI) in Hong Kong rose 0.3% following data from China that showed its manufacturing sector had expanded for the third month on the trot in December, but at a slower pace.

How US Stocks Are Faring in Premarket

US stocks were more cautious on Tuesday in premarket trade, following a selloff on Monday, hovering around the flatline. CME - Delayed Quote•USD(ES=F) was down 0.24% as of January 9 at 9:29:59 AM EST.

Good Morning from London

It's the last day of the year, and, unsurprisingly, a quiet one for the corporate calendar. The London Stock Exchange closes at 12:30 PM in preparation for the new year. Nonetheless, we will bring you the markets news of the day — things are happening out there!