Global shares retreated on Monday as the year drew to a close, lacking the previous year's exuberance that had propelled many world markets to record highs in 2024.
The Tokyo's benchmark Nikkei 225 index closed 1% lower at 39,894.54, with the Japan Exchange Group's CEO apologizing for a recent insider trading case during the yearend ceremony.
In early European trading, Germany’s DAX lost 0.4% to 19,896.66, the CAC 40 in Paris was down 0.4% at 7,328.22, and Britain’s FTSE 100 dropped 0.4% to 8,119.74.
South Korea’s Kospi dropped 0.2% to 2,399.49, with Jeju Air Co. shares falling 8.7% after a tragic incident involving one of the company’s jets.
Law enforcement officials in South Korea sought a court warrant to detain impeached President Yoon Suk Yeol over a martial law decree issued on Dec. 3.
The Hang Seng in Hong Kong lost 0.2% at 20,041.42, while the Shanghai Composite index gained 0.2% to 3,407.33, and Australia’s S&P/ASX 200 dipped 0.3% to 8,235.00.
On Friday, the S&P 500 fell 1.1%, with the Dow Jones Industrial Average down 0.8% and the Nasdaq composite falling 1.5%.
Despite the recent drop, the S&P 500 is poised to end the year with a gain of around 25%, marking a second consecutive yearly gain of more than 20%.
The market gains have been supported by positive economic data indicating strong consumer spending and a robust labor market, along with a gradual easing of inflation.
The Federal Reserve's interest rate policy saw a reversal this year, with expectations for interest rate cuts contributing to market gains. The central bank implemented its third interest rate cut in 2024.
In other news, U.S. benchmark crude oil lost 31 cents to $70.29 per barrel, while Brent crude, the international standard, shed 32 cents to $73.47 per barrel. The euro also fell slightly against the dollar.
