Global Markets Stabilize Ahead of Final Trading Week of 2024
As investors head into the final trading week of 2024, global markets have stabilized with mixed results. The FTSE 100 ticked higher and US stocks fell on Friday, while Europe was in the green.
European Markets Recover from Boxing Day Break
The FTSE 100 (^FTSE) was up 0.1% by the closing bell after a day hovering around the flatline as European markets returned after the boxing day break. Germany's DAX (^GDAXI) rose 0.5%, and the CAC 40 (^FCHI) in Paris gained 0.8%. The pan-European STOXX 600 (^STOXX) ticked up 0.5%.
Iron Ore Prices Weaken Amid Chinese Economic Concerns
Among the top fallers in the FTSE 100 was miner Anglo American (AAL.L), which slipped 1.3% lower as traders' concerns about Chinese demand for iron ore played out. Iron ore prices were their lowest in more than five weeks on Friday amid a prolonged rout for China's economy.
US Markets Struggle to Maintain Momentum
Across the pond, the S&P 500 (^GSPC) lost about 1.3%, while the tech-heavy Nasdaq Composite (^IXIC) shed 2% on Friday morning. The Dow Jones Industrial Average (^DJI) lost 1%. Meanwhile, the 10-year US Treasury yield (^TNX) hovered near seven-month highs around 4.6%.
Oil Prices Rise Amid Expectations of China's Economic Recovery
Oil prices edged higher on Friday, supported by expectations that China's economic recovery will be bolstered by ongoing stimulus measures. Brent crude futures rose 0.2% to $73.39 per barrel, while US West Texas Intermediate (WTI) crude gained 0.2% to trade at $69.80.
Netflix Stock Falls Amid Strong Earnings
Netflix stock slipped almost 3$ in early trade on Friday, even after setting new streaming records with the broadcast of two NFL games on Christmas day. According to reports, the Kansas City Chiefs' victory over the Pittsburgh Steelers averaged 24.1 million viewers, while an average of 24.3 million people watched the Baltimore Ravens defeat the Houston Texans.
Crypto Markets Experience Volatility
Bitcoin (BTC-USD) fell to hover near the $96,000 level as volatile trading continued. Crypto-linked stocks like MicroStrategy (MSTR) tracked the declines.
UK Retailers Struggle Amid Financial Distress
The Guardian reported that data from Begbies Traynor shows there were 2,124 retailers in "critical financial distress" in the first 11 weeks of the October-December quarter. This figure is a jump of around 25% quarter-on-quarter — up from 1,696 in July-September.
Kospi Falls Amid Political Turmoil in South Korea
Korea's KOSPI Composite index (^KS11) finished 1% lower as political turmoil continues to roil the region. South Korea voted on Friday to impeach its interim president Han Duck-soo.
Conclusion
As investors enter the final trading week of 2024, global markets have stabilized with mixed results. While European markets recovered from the boxing day break, US stocks struggled to maintain momentum. Oil prices rose amid expectations of China's economic recovery, while Netflix stock fell despite strong earnings. The crypto market experienced volatility, and UK retailers continued to struggle amid financial distress. Amidst these developments, investors remain cautious as they await further signals from the incoming Trump administration.