European stocks are poised for a positive opening on Friday as trading picks up following the Christmas holidays. As 2024 wraps up, attention shifts to potential Federal Reserve interest rate decisions in 2025 and possible changes in tariff policies by U.S. President-elect Donald Trump.
In Asia, stock markets mostly gained, notably Japan's Nikkei, which surged nearly 2 percent. This rise came as the yen stayed near a five-month low due to the Bank of Japan's cautious approach to raising interest rates. However, Tokyo saw an acceleration in inflation for the second consecutive month in December, keeping prospects for a rate hike alive.
Meanwhile, China's industrial profits displayed a slower decline in November, providing some relief to investors concerned about decelerating economic growth. In South Korea, the stock market fell sharply, and the won plunged to a 16-year low as lawmakers readied to vote on the possible impeachment of the acting president, Prime Minister Han Duck-soo.
The U.S. dollar remained stable during Asian trading sessions, while oil prices and other market prices lacked clear direction amid an absence of significant catalysts. In contrast, U.S. stock markets showed mixed results when trading resumed post-Christmas holidays. Retail sales exceeded forecasts despite a shorter holiday season, and the labor market presented a mixed picture with unexpected falls in initial jobless claims for the week ending December 21, although continuing claims rose to a three-year peak.
The Dow ended the day flat but with a slight upward trend, whereas the tech-heavy Nasdaq Composite and the S&P 500 both closed slightly lower. Major European markets did not open on Thursday due to the Boxing Day holiday.