European Shares Poised For Mixed Open In New Year

(RTTNews) - European stocks are likely to open on a mixed note Thursday as investors ponder the U.S. rate outlook and the impact of a new U.S. administration led by President-elect Donald Trump on the regional growth.

After taking charge as the U.S. President on January 20, Donald Trump is likely to impose a 25 percent tariff on imports from Canada and Mexico and an additional 10 percent tariff, above any additional tariffs on imports from China.

U.S. stock futures edged higher as Tesla reports fourth-quarter and full-year deliveries and production figures later today.

Most Asian markets fell, with Tokyo still closed for the New Year holidays. Chinese and Hong Kong markets led declines amid much uncertainty about the outlook for U.S.-China relations in the New Year. It is feared that bilateral relations may quickly plunge to a new low during Trump's second term.

Underwhelming Chinese factory activity data also signaled a rocky economic outlook and increased calls for further policy support.

The Caixin/S&P Global manufacturing PMI for China nudged down to 50.5 in December from 51.5 the previous month, undershooting analysts' forecasts.

Gold edged up slightly in Asian trade as the dollar retreated from multi-year highs reached on Tuesday.

Oil ticked higher as industry data showed a larger-than-expected drawdown in U.S. crude inventories.

The dollar index rose 7 percent in 2024 while the 10-year U.S. yield ended the year up by more than 60 bps, posting its best annual gain in two years.

Crude oil prices ended 2024 with a 3 percent loss, slipping for a second straight year amid persisting concerns about the outlook for global oil demand due to weak Chinese growth and uncertainty about interest-rate trajectory.

Gold delivered one of its best performances in a decade in 2024, recording an annual growth of 26 percent fueled by central bank purchases and heightened geopolitical tensions.

The S&P 500 rallied 23 percent in 2024, rising for the fifth time in six years and ending up by more than 20 percent for the second year in a row. The Nasdaq soared by nearly 30 percent and the Dow surged 13 percent for the year.

European markets showed moderate performance in comparison, with the Euro Stoxx 50 climbing by 6.5 percent and the U.K.'s FTSE 100 rising 5.4 percent in 2024.