Despite this, global stock markets kept pace maintaining a steady course after a break in trading due to the thanksgiving holiday in the United States. Resilience of the market denotes investor confidence since global shares are anticipated to log their best monthly performance since November 2020.
The Asian trading session had indecision and sentiment carried over into European markets where the Stoxx 600 index remained muted. Futures for the S & P 500 and Nasdaq also depicted minimal changes exhibiting a time of serenity in the markets.
This period of calm, notwithstanding easing of geopolitical stresses, arises against the backdrop of short truce between Israel and Hamas that took place over the course of 3 days. This relative calmness in their financial world signifies shifting investors’ priority from immediate global events to long-term economic forecasting and strategies.
In the coming days and weeks, as 2023 nears closure, it can be observed that the analysts are contemplating whether the market will go towards an uptrend or downtrend. Although the “Santa rally” is usually seen in the last weeks of December, it may not materialize this year; as such, the period in which markets will have clear direction may be lacking.
The year U.S. Treasury yields declined to below 5% previously recorded in July have since stabilized. Additionally, the most recent FEDERAL RESERVE policy meeting minutes indicated that rate hikes could only be paused if the direction of inflation showed reversal.
Cautious market sentiment prevails in Europe following skepticism towards policies of central bank easy money. Bond yields in the Eurozone are ending up higher this week due to fewer certainty about an expected European Central Bank rate cut in April 2024.
The dollar index which measures US currency versus six major peers edged toward three month low due to reduced appeal for holding the dollar in the midst of rate cut expectations. However, the sterling remained strong, trading near a two and half month high as the bank of England is expected to keep high interest rates until late next summer.
The oil market remained stable as Brent Crude futures hovered at approximately $81.68 per barrel despite concerns about a delayed OPEC meeting. On the other hand, gold prices remained steady highlighting an ongoing search for safe-haven assets during uncertain times.
According to reports by Reuters, the next weeks ahead will be fundamental in determining the trajectory for the year 2024 as global markеts surmount these divergent factors. However, a goodwill and optimism is underlining the silence of markets as one nears 2014.
