Investors assess mixed signals from Asian markets, U.S. tech pressures, and upcoming central bank actions
Global stock markets showed mixed performance on Monday as Asian indices fluctuated amid U.S. tech sector pressures from the prior week, while U.S. and European markets awaited key central bank signals. Investors weighed ongoing AI bubble concerns against economic resilience, with U.S. futures pointing slightly lower early in the session. European benchmarks dipped modestly, reflecting broader caution ahead of ECB and BoE meetings.
Asian markets mixed
Japan’s Nikkei 225 opened lower, trading around 50,168.11 points, down 1.31 percent from Friday’s close, extending recent volatility after a 1.37 percent gain to 50,837 the prior session. The index faced headwinds from a stronger yen and profit-taking in tech stocks, though broader Topix rose 0.31 percent on Friday to 3,434.28, buoyed by Wall Street records. Australia’s All Ordinaries fell 0.66 percent to 8,923.80, tracking regional sentiment.
China markets battled deflation pressures, contributing to choppy global flows as the ECB, BoE, and BoJ policy decisions loomed. Hong Kong’s Hang Seng and mainland indices saw limited movement early, with silver hitting a record $64/oz adding commodity volatility.
U.S. markets waver
U.S. indices retreated sharply on Friday, with the S&P 500 shedding 1.07 percent to 6,827.41, filling a prior gap down to around 6,830 amid AI anxiety. The Nasdaq Composite dropped 1.69 percent to 23,195.20, hit hardest by tech selloffs in names like NVIDIA (-5.74 percent) and Broadcom, while the Dow Jones held relative strength but closed at 42,655.85 after weekly gains of 1.0 percent.
Futures on Monday indicated mild declines: S&P 500 futures off 0.1 percent, Nasdaq-100 futures down 0.2 percent, and Dow futures marginally lower. Year-to-date, Nasdaq leads with 20 percent gains, S&P 500 up 16 percent, and Dow at 14 percent, though Friday’s pullback erased recent records post-Fed‘s 25 basis points cut. TradingEconomics pegged US500 at 6,849 intraday, up 0.32 percent, signaling potential rebound attempts.
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European indices dip
Europe opened softer, with Euro Stoxx 50 around 5,720.71 points after a 0.58 percent Friday drop, down amid tech weakness. Germany’s DAX faced downside bets per prediction markets, while France’s CAC 40 slipped 0.21 percent to 8,068.62 on Friday but hit four-week highs intraday at 8,138, led by BNP Paribas (+1.5 percent).
U.K.’s FTSE 100 fell 0.56 percent to 9,649.03 despite Friday bank gains like Standard Chartered (+2 percent). Stoxx 600 mirrored the 0.53 percent decline, pressured by ASML (-1.8 percent) and U.K. contraction data, though seasonal December strength averages 2.12 percent for Euro Stoxx from mid-month.
Fed’s recent 25 basis points cut with dissent fueled volatility, as AI hype cooled post records, shifting flows to value sectors. Gold and oil steadied amid Trump tariff talks, while year-end seasonality supports Europe. Markets eye BoJ tweaks and China stimulus for direction, with U.S. tech rotation ongoing.
AloJapan.com