(Bloomberg) – European stocks slipped along with US index futures on the last trading day of the year. Yields on the Treasury and the dollar were stable.
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With most European markets closed or closing early on Friday, trade was thin as investors pulled back on a strong year for global stocks as economies recovered from the pandemic. Emerging markets and Asian benchmarks have lagged, in part due to regulatory pressures from China and the slowing economy. Bond investors are managing their losses as many central banks move towards tighter monetary parameters to fight inflation. How the coronavirus and these policy changes are shaping the economic reopening is key to the outlook.
“As we look forward to 2022, the gains are likely to be more modest than they have been over the past year,” in part given the current valuation situation, said Jason Pride, chief investment officer. investments for private wealth at Glenmede, on Bloomberg. Television. But there are also reasons to be optimistic since “we are still recovering from the pandemic,” he said.
The Stoxx Europe 600 index came close to a record close after rising more than 22% this year. Of the major markets, only the UK and France were open for trading and both are closing earlier. The contracts on the S&P 500 and the Nasdaq 100 have changed little. The S&P 500 fell a record low on Thursday, but is up 27% for the year.
Asian stocks benefited from a rally in Hong Kong’s technology gauge following a surge in US-listed Chinese stocks. The Hang Seng technology index rose 3.6%, while Chinese stocks broadly rose. The moves came in the wake of the Nasdaq Golden Dragon China Index’s biggest one-day jump on Thursday since 2008, though it is still down more than 40% for 2021.
The latest data showed that China’s manufacturing sector continued to expand in December, providing some relief for Beijing as the world’s second-largest economy continues to struggle against a collapsing real estate market. Less positively, Hong Kong could face a cluster of omicron virus strains.
The city’s stock market closed early, and Japan is among those that closed ahead of the New Year. Treasury futures were flat after falling yields in US hours. There is no exchange of treasury bills in Asia due to the holidays in Japan. The dollar has fluctuated, oil has fallen and gold has risen. Bitcoin recorded losses in December.
Traders continue to monitor struggling Chinese real estate developers. A Chinese state-owned company will take a 29% stake in China South City Holdings Ltd., in the latest sign from authorities stepping up support for struggling real estate firms.
Emphasis was also placed on telephone talks between US President Joe Biden and Russian President Vladimir Putin. The Kremlin said Putin was happy with the outcome of the talks. The United States and its allies have sounded the alarm about a possible Russian invasion of Ukraine.
For more market analysis, read our MLIV blog.
Some of the main movements in the markets:
The Stoxx Europe 600 was little changed at 8:24 a.m. London time
S&P 500 futures have not changed much
Nasdaq 100 futures have not changed much
Futures contracts on the Dow Jones Industrial Average have changed little
MSCI Asia-Pacific index rose 0.4%
The MSCI Emerging Markets index rose 0.8%
The Bloomberg Dollar Spot Index changed little
The euro fell 0.1% to $ 1.1313
The Japanese yen was little changed at 115.13 per dollar
The offshore yuan was little changed at 6.3703 per dollar
The British pound rose 0.1% to $ 1.3514
The yield on 10-year treasury bills was little changed at 1.51%
The German 10-year yield was little changed at -0.18%
UK 10-year yield rose 1 basis point to 0.99%
Brent crude rose 0.1% to $ 79.64 a barrel
Spot gold rose 0.1% to $ 1,817.20 an ounce
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