Global financial markets concluded the final trading sessions of 2025 with divergent performances across major indices amid characteristically thin year-end trading volumes. European shares opened with minimal movement Tuesday following modest declines across Asian markets, with numerous exchanges preparing for New Year closures.
Japanese Prime Minister Sanae Takaichi presided over the Tokyo Stock Exchange’s traditional year-end bell ceremony, emphasizing the government’s commitment to “realizing a Japanese economy that earns the global investment community’s trust.” Despite closing 0.4% lower at 50,339.48, the Nikkei 225 achieved its first year-end close above the historic 50,000 threshold, registering an impressive annual gain of nearly 25%.
European trading saw Germany’s DAX essentially flat at 24,348.38, while Britain’s FTSE 100 edged upward 0.1% to 9,876.73. France’s CAC 40 remained virtually unchanged at 8,112.37. Asian markets displayed variability with Hong Kong’s Hang Seng advancing 0.9% to 25,854.60, while mainland China’s Shanghai Composite held steady at 3,965.51. Australia’s S&P/ASX 200 dipped marginally, and South Korea’s Kospi declined 0.2%.
The technology sector continued experiencing volatility as investor skepticism mounted regarding artificial intelligence investments’ long-term profitability. Market heavyweights Nvidia and Broadcom declined 1.2% and 0.8% respectively, reflecting concerns about whether AI-focused companies can justify their substantial valuations.
Precious metals demonstrated remarkable resilience with gold prices rebounding 0.7% after Monday’s 4.6% decline, maintaining an extraordinary 64% annual appreciation. Silver staged a dramatic recovery, surging 4.4% following an 8.7% previous-day slump, more than doubling in value throughout 2025. These recoveries occurred despite the Chicago Mercantile Exchange’s increased margin requirements for metals trading.
Energy markets witnessed modest gains with U.S. crude oil advancing to $58.22 per barrel and Brent crude reaching $61.61. Currency markets displayed minimal fluctuation as the U.S. dollar held near 156.00 yen while the euro dipped slightly against the dollar.
Treasury yields continued their descent with the 10-year note falling to 4.11%, reflecting the Federal Reserve’s interest rate cuts implemented throughout the year to address employment market softening. This monetary policy shift has generated concerns about potential inflationary pressures exceeding the central bank’s 2% target, creating economic uncertainty heading into 2026.