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Thursday March 28, 2024

Markets wobble as traders wind down for Christmas

Traders' screens twinkled red and green on Monday as global stock markets wobbled on Monday in a muted start to a holiday-shortened trading week, with many investors already away from Christmas

By AFP
December 23, 2019
Santa Claus pays a visit to the New York Stock Exchange (NYSE) in New York, US, November 21, 2018. REUTERS/Brendan McDermid/Files

LONDON: Traders' screens twinkled red and green on Monday as global stock markets wobbled on Monday in a muted start to a holiday-shortened trading week, with many investors already away from Christmas.

Asian equities fluctuated Monday with activity thinning out, while confidence remains buoyed by relief at the China-US trade deal, analysts said.

In Europe, London stocks pushed higher while Frankfurt and Paris appeared to run out of fizz.

"It's been a strong run up to Christmas for the stock markets and it seems traders are taking a little breather in this shortened trading week," said analyst Craig Erlam at trading firm Oanda.

"It's been a good few weeks for investors, spurred primarily by the de-escalation in the trade war, with Trump ... claiming it will be signed very shortly."

Global equities have enjoyed a flourish as they head towards the end of the year, having been on a roller-coaster ride for 12 months owing to the long-running trade row and Brexit.

And observers say that with those two major issues cleared up for now, 2020 could see a healthy run-up in prices, boosted by looser central bank monetary policy as well as signs of improvement in economies around the world.

Traders were still breathing a sign of relief after Britain's freshly-elected parliament approved Prime Minister Boris Johnson's divorce deal with the European Union.

"The passing of Boris' Brexit withdrawal bill on Friday means MPs in the UK can finally relax and enjoy all of the festivities that this time of year brings," added Erlam.

Wall Street provided yet another record-breaking lead on Friday after data confirmed the US economy enjoyed reasonable growth in the third quarter, while other reports showed personal income and consumer confidence improving.

The New York gains lent some support to Asian markets but dealers there struggled to build any momentum.

Hong Kong finished up 0.1 percent and Tokyo was barely moved, while Shanghai sank more than one percent.

With very little by way of market-moving events on the horizon, analysts are expecting a quiet week.

"It has been a quiet morning in Europe as dealers are winding down for Christmas," noted CMC Markets analyst David Madden.

"As it is Christmas week, market volatility is low, and trading ranges are small, so it is possible today's movements are not a true reflection of market sentiment."

Key figures around 1100 GMT

  • London - FTSE 100: UP 0.4 percent at 7,612.73 points
  • Frankfurt - DAX 30: DOWN 0.2 percent at 13,290.87
  • Paris - CAC 40: FLAT at 6,020.90
  • EURO STOXX 50: DOWN 0.1 percent at 3,771.75
  • Tokyo - Nikkei 225: FLAT at 23,821.11 (close)
  • Hong Kong - Hang Seng: UP 0.1 percent at 27,906.41 (close)
  • Shanghai - Composite: DOWN 1.4 percent at 2,962.75 (close)
  • New York - Dow: UP 0.3 percent at 28,455.09 (close)
  • Pound/dollar: DOWN at $1.2994 from $1.2999 at 2200 GMT
  • Euro/pound: UP at 85.30 pence from 85.23 pence
  • Euro/dollar: UP at $1.1085 from $1.1079
  • Dollar/yen: DOWN at 109.40 yen from 109.44 yen
  • Brent North Sea crude: FLAT at $66.15 per barrel
  • West Texas Intermediate: DOWN 0.2 percent at $60.34