FX.co ★ European Shares Poised For Mixed Open As Year-end Approaches

European stocks are poised for a mixed opening on Monday as the year draws to a close. This week heralds a quieter phase for economic data and corporate earnings, with markets in both Europe and the U.S. closed on Wednesday to mark New Year's Day.

In the U.S., the economic calendar remains subdued this week, featuring housing price and sales updates, as well as a report on the manufacturing sector. U.S. stock futures experienced a downturn, while Asian markets mostly saw lower trading, amid increasing global uncertainties and cautious sentiment as the year-end holiday season nears.

In South Korea, political instability intensified as authorities sought an arrest warrant for suspended President Yoon Suk-yeol following his brief declaration of martial law. Concurrently, the country's transport ministry announced a review of plans to conduct a special inspection on Boeing B737-800 aircraft after a crash incident.

The yen maintained strength against the dollar amid expectations of an interest rate hike by the Bank of Japan in January. In a holiday-shortened week, oil and gold prices exhibited marginal gains amidst lackluster trading.

On Friday, U.S. stocks declined as yields on the 10-Year Treasury Note rose to an eight-month high, triggering profit-taking across the board and hindering the traditional Santa Claus rally ahead of the new year. The Dow Jones Industrial Average fell by 0.8 percent, ending a five-session winning streak but still achieving a 1.4 percent gain for the week. The S&P 500 and Nasdaq Composite dropped by 1.1 percent and 1.5 percent, respectively, but both indices closed the week over 1.5 percent higher.

European stocks concluded Friday on a strong note as trading recommenced after the Christmas holidays. The pan-European STOXX 600 increased by 0.7 percent, with banks surging after France's new Prime Minister, Francois Bayrou, announced that the delayed 2025 budget bill would aim for a deficit slightly above 5 percent to safeguard economic growth. The German DAX rose by 0.7 percent, France's CAC 40 advanced by 1 percent, and the UK's FTSE 100 edged up by 0.2 percent.