Global stock markets saw an uptick on Wednesday, with investors drawing inspiration from Wall Street’s gains as U.S. markets resumed trading post-holiday, anticipating a tranquil week with shortened trading sessions.
The future contracts for major U.S. indices showed mixed movements. The S&P 500’s future contract witnessed a marginal increase of less than 0.1%, while the Dow Jones Industrial Average’s future contract slightly declined by 0.1%.
In Europe, markets opened steadily in their first session after the holiday break. Germany’s DAX rose by 0.3% to 16,754.87, the CAC 40 in Paris climbed 0.4% to 7,597.52, and the FTSE 100 in Britain increased by 0.7% to 7,749.36.
In Asia, Tokyo’s Nikkei 225 index experienced a 1.2% rise to 33,681.24 following the Bank of Japan’s policy meeting, which revealed a divide among officials regarding changes to the bank’s long-standing lenient monetary policy. The Hang Seng index in Hong Kong advanced by 1.8% to 16,627.00, and the Shanghai Composite in mainland China went up by 0.5% to 2,914.61. Notably, Chinese video gaming companies like Tencent and NetEase recovered some losses in Hong Kong after the government sought to mitigate concerns over new regulatory guidelines affecting gaming revenues. However, these gains were modest compared to the broad sell-off experienced last Friday.
NetEase’s shares in Hong Kong surged by 11.9%, building on a 5.2% increase of its Nasdaq-listed stock on Tuesday. Tencent’s shares in Hong Kong rose by 4.0%, and Bilibili increased by 6.7%.
Other Asian markets also showed positive trends. Seoul’s Kospi index was up by 0.4% at 2,613.50, and Sydney’s S&P/ASX 200 grew by 0.8% to 7,561.20. However, Bangkok’s SET index showed a negligible drop of less than 0.1%, while Mumbai’s Sensex climbed by 0.5%.
On Wall Street, the previous day saw the S&P 500 increase by 0.4% to 4,774.75, nearing its all-time high set almost two years prior. The Dow Jones Industrial Average also rose by 0.4% to 37,545.33, while the Nasdaq composite closed 0.5% higher at 15,074.57. Despite the light trading following the Christmas holiday, market gains were broad, with more stocks rising than falling.
With the year 2024 nearing its end, the S&P 500 has recorded over a 24% increase for the year, while the Nasdaq has surged by 44%. Investors remain optimistic, buoyed by reports of declining inflation and a stronger-than-expected economy.
The Federal Reserve continues its balancing act, aiming to temper inflation through high interest rates without pushing the economy into a recession.
In other early trading on Wednesday, U.S. benchmark crude oil added 3 cents, reaching $75.60 per barrel on the New York Mercantile Exchange. International standard Brent crude also rose by 10 cents to $80.95 per barrel.
Currency markets saw the U.S. dollar strengthen to 142.53 Japanese yen from 142.38 yen, while the euro appreciated slightly to $1.1049 from $1.1044.