Stock Futures in Europe Seem to Track Global Gains

European stocks are tracking the global gains. On Tuesday, the S&P 500 approached its highest high since January 2022 with MSCI Asia performing the highest close in the last 4 months.

Experts believe European shares are likely to open higher after the holiday pause. The markets will experience gains both on Wall Street and in Asia. The rise can be triggered by the expectations of the FED’s rate cuts in March 2024.

MSCI Asia index rose by 1.1% featuring Hong Kong and Chinese tech firms’ rally after softening Beijing’s regulations on the gaming industry. It has been the highest close in the last 4 months, which pushed the Euro Stoxx futures higher by 0.6%. S&P 500 closed within its record high since January 2022 keeping US futures flat.

Analysts say the Asian trend will continue. However, they expect the rally to be short-term, as China and Hong Kong will eventually lag. Nevertheless, we can still observe Mainland Chinese equities rebound after earlier losses. It created a favorable base effect.

Australian ASX 200 index also made its highest high since April 2022 mainly thanks to an iron ore price rally and miners’ gains. Meanwhile, Japan showed up with a weakening yen and lowering government bond yields while the Nikkei 225 index grew by 1%. It made market participants remain mostly bullish by the end of 2023.

US stocks made a 4.5% rally in December featuring an overall gain of 24% so far. Oil made a reversal after price gains triggered by the Middle East tensions. Gold dropped while BTC rebounded after the recent retreat.

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