Global markets keep seeking direction during Christmas

ISTANBUL

Global markets are seeking direction in the few open stock exchanges and futures markets, as major US and European exchanges have been closed since Thursday due to Christmas.

According to analysts, trading volume is expected to be low when markets open on Friday, and price fluctuations may be steeper due to thin market conditions.

As markets prepare to wrap up the eventful 2025, investors are focused on who will replace Fed Chair Jerome Powell.

Expectations of the new chair being more pro-monetary easing are affecting asset prices, in addition to the current uncertainty over who will chair the Fed.

Optimism for the Fed’s easing path next year and the impact of central banks’ gold demand push up precious metals.

The US 10-Year bond rose around 2 basis points to 4.15% on Thursday, and the US Dollar Index remained flat at 9.79.

Gold hit a record high of $4,531.1 per ounce on Friday and is currently trading at around $4,505, giving back some of the gains with a 0.6% increase.

Silver also broke a record at $75.15 per ounce on Friday morning and is currently trading at $74.6 per ounce, up 3.7%. Brent crude oil trading is suspended during Christmas.

New York Stock Exchange index futures are searching for direction in the meantime.

As for Europe, stock markets have been closed since Thursday, while Asian markets showed a mixed trend.

The trading volumes in regional markets remained below average, except for the buying in tech and semiconductor stocks in South Korea and Japan.

The shares of Hanmi Semiconductor in South Korea, listed in the Kospi Index, are trading up 6.7%, while Samsung Electronics shares are up 4.8% and SK Hynix 2%.

Lasertec shares in Japan, traded on the Nikkei 225, surged 1.7%, while semiconductor test equipment maker Advantest shares increased 2.4%, and Tokyo Electron shares are up 1.3% on Friday.

The Tokyo Consumer Price Index (CPI) rose 2% in December, and the core CPI rose 2.3%, below estimates. This was followed by a 2.7% increase in the CPI last month.

Japan’s unemployment rate for November was 2.6%, within estimates, while retail sales for the same month rose 0.6% month-on-month, above estimates, and 1% on an annual basis, in line with projections.

Japan’s industrial production fell 2.6% month-on-month and 2.1% year-on-year in November, below estimates.

Analysts say the data showed mixed signals and that the slowdown in Tokyo inflation has yet to point to an overall inflation trend.

Following these changes, the Nikkei 225 rose 0.7% and the Kospi Index 0.3%, while the Shanghai Composite Index fell 0.2%.

Markets in Hong Kong and Europe are closed in the meantime.