European stock indexes fell Friday as traders banked profits on a strong start to 2025 and awaited a full return to work next week.
Asia’s key equity indices closed mainly higher, with Seoul up over 2% despite rising political turmoil in Asia’s fourth-largest economy.
Hong Kong, Sydney, and Taipei all saw rises, however, Shanghai fell for the second straight session.
Wall Street closed lower on Thursday, the first US trading day of 2025.
“The post-Christmas malaise in US stocks continued as investors await the inauguration of president-elect Donald Trump who could prove a wildcard for markets this year,” noted Russ Mould, investment director at AJ Bell.
According to US media, departing President Joe Biden has chosen to deny Japan’s Nippon Steel’s proposed $14.9 billion takeover of US Steel and will make the announcement as early as Friday.
Nippon Steel has touted the purchase as a lifeline for Pennsylvania’s ailing steel industry.
US equities opened higher on Thursday before closing slightly down.
Tesla’s stock dropped 6.1per centt as fourth-quarter auto sales fell short of expectations, contributing to Wall Street’s losses.
On Friday, the dollar fell versus the euro, pound, and yen.
The US dollar rose to multi-year highs against some of its main rivals on Thursday, underscoring predictions that the world’s largest economy will outperform others in 2025.
On Friday, the yuan hit its lowest level against the dollar since late 2023.
“The very negative performance of China equities provides a better indication of the weakening sentiment around China assets at the start of 2025, and ahead of Trump’s return to the White House,” said Alvin Tan, head of Asia FX strategy at RBC Capital Markets.
Investors are bracing for Trump’s inauguration on January 20, which will be followed by the formal announcement of steep tariffs, particularly on Chinese imports, that might disrupt international trade.
US unemployment claims declined more than expected on Thursday, indicating a stronlabouror market and giving the Federal Reserve less incentive to back further rate cuts.
Other key economic releases coming up include data on inflation and retail sales during the holiday shopping season.
Key figures around 1100 GMT
London – FTSE 100: DOWN 0.2 percent at 8,247.80 points
Paris – CAC 40: DOWN 0.9 percent at 7,327.26
Frankfurt – DAX: DOWN 0.4 percent at 19,940.47
Tokyo – Nikkei 225: closed
Hong Kong – Hang Seng Index: UP 0.7 per cent at 19,760.27 (close)
Shanghai – Composite: DOWN 1.6 per cent at 3,211.43 (close)
New York – Dow: DOWN 0.4 per cent at 42,392.27 (close)
Euro/dollar: UP at $1.0283 from $1.0269 on Thursday
Pound/dollar: UP at $1.2398 from $1.2382
Dollar/yen: DOWN at 157.34 yen from 157.52 yen
Euro/pound: FLAT at 82.95 pence
West Texas Intermediate: DOWN 0.4 per cent at $72.82 per barrel
Brent North Sea Crude: DOWN 0.4 per cent at $75.63 per barrel
