Financial markets worldwide presented a fragmented picture during year-end holiday trading sessions, with several major exchanges across Europe and Asia remaining closed for seasonal observances. Among active European indices, France’s CAC 40 declined by 0.5% to reach 8,130.14 while Britain’s FTSE 100 retreated 0.2% to 9,923.59. Asian markets demonstrated divergent trajectories with Hong Kong’s Hang Seng dropping 0.9% to 25,630.54, while Taiwan’s Taiex surged 0.9% to 28,963.60. Australia’s S&P/ASX 200 remained nearly unchanged with a marginal decline. Tokyo and South Korean markets scheduled extended closures through the New Year period, with Wall Street maintaining limited Wednesday operations before its Thursday holiday closure.
Energy markets witnessed subtle adjustments as U.S. crude prices decreased by 16 cents to $57.79 per barrel, with international benchmark Brent crude experiencing a comparable decline to $61.18. Currency markets reflected modest fluctuations with the U.S. dollar strengthening to 156.55 Japanese yen from 156.36 yen, while the euro weakened slightly against the dollar to $1.1727.
Market analysts identified persistent concerns regarding inflationary pressures and central bank policy directions as key factors influencing trading sentiment. The Federal Reserve’s December meeting minutes revealed internal divisions regarding economic threat assessments, contributing to market uncertainty. Financial experts including Sung Won Sohn, economics professor at Loyola Marymount University, emphasized that central banks must exercise caution amid labor shortages and interest rate uncertainties, predicting continued market volatility requiring sophisticated risk management strategies from businesses and investors.