The MSCI’s world equity gauge was flat in early European trading as markets assessed comments from US president Donald Trump that he and Ukrainian president Volodymyr Zelenskiy were getting “a lot closer” to a deal that could end the Ukraine war.
That left the global stock benchmark with an almost 21pc year-to-date gain after Wall Street hit a record high on Friday and European shares touched an intraday record high in early trades on Monday.
But Wall Street’s main indices kicked off the final week of the year on a lower note on Monday, as heavyweight technology stocks gave up some ground from last week’s gains which had pushed the S&P 500 to new highs.
All three indices were headed for firm monthly gains, with the Dow and S&P 500 on pace for their eighth consecutive month in the green, as technology stocks found footing after an upbeat forecast from chipmaker Micron Technology earlier in the month.
“Given this week’s light economic calendar, internal momentum could be the main market storyline this week,” said Chris Larkin, managing director of trading and investing at ETrade from Morgan Stanley.
“If stocks are going to close out another year of double-digit gains on a high note, they’ll likely need tech to do much of the heavy lifting,” he said.
The S&P 500 has added about 1pc so far this year, as the frenzy to capitalise on artificial intelligence helped the US benchmark overtake Europe’s STOXX 600, despite investors diversifying away from US stocks earlier in the year.
The focus of investors in this holiday-shortened week will turn on Tuesday to the publication of the minutes of the Fed’s latest meeting.
The US central bank cut its main funds rate to a range of 3.5pc-3.75pc this month and money markets are pricing two further quarter-point cuts by September.
President Trump, who favours lower borrowing costs, said last week that the replacement for outgoing Fed chair Jay Powell would not be anyone who disagrees with him.
London’s FTSE-100 edged lower earlier on Monday, as prospects of a potential Russia-Ukraine ceasefire weighed on defence stocks.
But European shares were broadly flat as trading resumed after Christmas.
The FTSE-100 ended the session barely changed, as did other major European indices including France’s CAC-40 and Germany’s DAX.
Ireland’s ISEQ-20 was also flat. Marginal gainers included Kerry Group, Kingspan and AIB.
Origin Enterprises declined just under 6pc, while Uniphar was 1pc lower.
MSCI’s broadest index of Asia-Pacific shares was 0.4pc higher on Monday in a strong start to the final week of the year. Most Asian markets have recorded double-digit gains for 2025 as markets bet on the prospects for AI and set aside concerns about the impact of trade tariffs.
South Korea’s Kospi rose 2.2pc on Monday, on pace for its best year since 1999 after investors spread their AI bets beyond Wall Street.
(Reuters)
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