2024 Wrap with Stocks Fall, Commodities Mixed as Year Ends

Stocks fall globally to close out 2024, with economic concerns driving investor caution. Commodities and bonds provide a mixed outlook.

Global financial markets ended 2024 cautiously, as economic concerns and mixed data weighed on investor sentiment. While markets in Asia-Pacific and the United States closed lower, commodities showed varied performances, and upcoming economic data kept investors on edge.

Asia-Pacific Markets Slump

Asian stock markets mainly saw negative movements on the final trading day 2024. Japan’s Nikkei 225 fell 0.96%, while China’s Shanghai Composite dropped 0.85%. The Hang Seng in Hong Kong was a rare bright spot, posting a modest gain of 0.09%. Australia’s ASX 200 declined 0.92%, driven by widespread selling in the energy and materials sectors.

Economic data from China further dampened sentiment. The country’s Purchasing Managers’ Index (PMI) for December came in at 50.1, marginally above the contraction threshold of 50 but below the forecast of 50.3. This signaled limited impact from Beijing’s recent stimulus efforts to revitalize the economy.

Another area of focus was South Korea, which saw inflation rise to 1.9% in December. Consumer prices rose faster than the 1.5% in November, adding to global inflationary concerns.

U.S. Markets Close Year in Red

U.S. stock markets mirrored the cautious sentiment, ending 2024 with losses across major indices. The Dow Jones Industrial Average fell 0.97% to 42,573.73, while the S&P 500 and Nasdaq Composite dropped 1.07% and 1.19%, respectively.

Trading in the U.S. was marked by high volatility, with the Dow plunging over 700 points at one stage before paring some losses. Analysts attributed the declines to broader concerns over economic growth rather than specific catalysts, as light trading volumes in a holiday-shortened week exacerbated market swings.

2024 Wrap with Stocks Slide, Commodities Mixed as Year Ends

Commodities Show Mixed Trends

Commodities markets presented a mixed picture. Precious metals like gold and silver edged lower, with gold falling 0.14% to $2,615.35 per ounce and silver declining 0.58% to $29.24 per ounce.

Energy markets fared better, with Brent crude oil rising 0.86% to $74.49 per barrel and West Texas Intermediate (WTI) crude rising 0.85% to $71.64 per barrel. Analysts attributed the gains to tightening supplies and expectations of increased demand in the new year.

Global Bond Yields Reflect Economic Worries

Bond yields showed divergent trends, reflecting varied economic outlooks across regions. The U.S. 10-year Treasury yield stood at 4.516%, while the UK 10-year yield was slightly higher at 4.608%. In Germany, the 10-year bund yield settled at 2.359%.

Strong U.S. Housing Data a Silver Lining

In the U.S., pending home sales surprised to the upside, growing 2.2% month-on-month in November, significantly above the 0.9% expected. The positive housing data offered a glimmer of hope amid broader economic concerns.

Investors now focus on upcoming economic data, including the U.S. House Price Index (HPI), due later today. Market participants are also bracing for a challenging start to 2025, as concerns about slowing global growth, inflation, and geopolitical tensions remain unresolved.

As 2024 ends, the subdued market performance underscores the fragile state of the global economy, leaving investors cautious but hopeful for a better year ahead.

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