European stocks were mostly higher on Friday as trading resumed after the Christmas holiday break.
Trading activity, as expected, continued to remain low.
The pan-European STOXX 600 gained 0.3% to 505.08, heading for a modest weekly gain.
The index looks set to post modest gains for the year.
After rallying up to 10% to a record high by September, the Stoxx 600 has lost half of that gain by year-end, weighed down by concerns over regional political uncertainty and the potential threat of US tariffs under President-elect Donald Trump.
UK stocks were subdued, with the FTSE 100 slightly lower at 8,130.70 amid a quiet economic day.
Energy giants BP and Shell both saw minor gains, supported by rising oil prices and expectations of a recovery in China due to economic stimulus.
French stocks edged up, with the CAC 40 rising 0.3% to 7,304. Banks, including BNP Paribas, Credit Agricole, and Societe Generale, saw 1-2% increases amid a surge in regional government bond yields.
After a slow start, German stocks gained pace, with the DAX rising around 0.35% to 19,918.50.
Banks like Commerzbank and Deutsche Bank saw small gains as German Bund yields hit a one-month high, following a rise in US Treasury yields after a successful seven-year auction.
Asian stocks end mixed
Asian stocks ended mixed on Friday. Japanese markets led gains, while Seoul stocks declined amid political turmoil in South Korea.
Mainland Chinese and Hong Kong markets closed flat after data showed a fourth consecutive month of declining industrial profits in China.
The Shanghai Composite rose slightly to 3,400.14, and the Hang Seng ended near flat at 20,090.46.
The World Bank upgraded China’s economic growth forecast for 2024 and 2025 but highlighted ongoing challenges in the property sector and weak consumer and business confidence.
Japanese stocks rallied, with the Nikkei rising 1.80% to 40,281.16, while the Topix gained 1.26% to 2,801.68.
The yen hovered near a five-month low, following signals from the Bank of Japan about potential delays in rate hikes.
Toyota, Honda, and SoftBank Group posted gains, while Nissan dropped sharply.
Seoul’s Kospi index fell 1.02% to 2,404.77 amid political uncertainty and a rising won-dollar exchange rate that fueled concerns over capital outflows.
Australian stocks edged higher after the holiday break.
The S&P/ASX 200 rose 0.5% to 8,261.80, and the All Ordinaries gained 0.57% to 8,520.10, with buying seen across most sectors except utilities and technology.
US stock futures fall on Friday
US stock futures dipped early on Friday as investors aimed to conclude the holiday-shortened week on a strong note.
Futures for the Dow Jones Industrial Average declined by 0.28%, while S&P 500 and Nasdaq 100 futures fell by 0.32% and 0.40%, respectively.
This follows a mixed performance in Thursday’s session, where the Dow Jones Industrial Average achieved a narrow gain.
In contrast, the S&P 500 and Nasdaq Composite ended the session just below the flatline.
Despite the recent fluctuations, the three major U.S. indexes have shown positive movement week-to-date, buoyed by strong gains at the start of the shortened holiday week.
The S&P 500 has risen 1.8% so far this week, while the Nasdaq 100 has surged up over 2%.
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