
European stocks followed Asian markets higher in light pre-holiday trading, supported by a rally on Wall Street driven by giant technology stocks.
The European Stoxx 600 index rose about 0.2%, with major markets including Germany closed and others, such as London and Paris, scheduled to close early. News.A to Z Reports, citing Foreign media.
France’s CAC 40 index outperformed after Prime Minister Francois Bayrou said he aimed to reduce the country’s budget deficit to nearly 5%. US stock futures were little changed.
The S&P 500 is on track to record a stellar annual return and consecutive years of gains of more than 20%. The index has risen about 25% since the end of 2023. The seven largest technology stocks accounted for more than half of the rise, despite improved market breadth in the last half of the year.
By contrast, European stocks lagged amid lackluster economic growth and political turmoil in France and Germany. The Stoxx 600 index has fallen more than 4% since its September high, heading for its biggest quarterly loss in two years.
Among individual transport companies in Europe, Vistry Group Plc fell as much as 20% after the UK housebuilder cut its earnings guidance for the third time in as many months.
Asian stocks rose, with stocks in mainland China and Hong Kong among the best performers, while stocks in Japan were mixed. Shares of Taiwan Semiconductor Manufacturing Company reached a new record high, while Honda Motor Company jumped after announcing a buyback of its shares.
MSCI’s Asia Stock Index is still headed for its first quarterly loss since September 2023, losing 6.8% over the period, even as the S&P 500 rose 3.7%. Sentiment in Asia has deteriorated in recent months due to concerns about higher global tariffs threatened by US President-elect Donald Trump, a stronger dollar, and a lackluster economic recovery in China.
Nissan Motor Co. shares fell as much as 7.3% in Tokyo after the company confirmed it was in talks with Honda about a potential business integration. Honda shares rose as much as 14% after it said it would buy back up to 1.1 trillion yen ($7 billion) of its shares.
Treasuries were little changed, while the Bloomberg dollar gauge rose. The value of the yen fluctuated amid thin trading volumes after Japanese Finance Minister Katsunobu Kato warned against excessive movements in foreign exchange rates.
In China, policymakers plan to sell 3 trillion yuan ($411 billion) in private treasury bonds in 2025, up from 1 trillion yuan this year, Reuters reported on Tuesday, citing two unnamed sources.
Oil prices rose in weak trading ahead of the holidays after a three-day selling wave, with the focus on the dollar’s rise and President-elect Donald Trump’s turmoil in international politics. Rose gold.
News.A to Z