(Bloomberg) -- US equity futures edged higher in muted pre-holiday trading, signaling a subdued open on Wall Street after Monday’s tech-led rally.
Contracts on the S&P 500 gained about 0.1% and those on the Nasdaq 100 were 0.2% higher. American Airlines Group Inc. shares fell as much as 5.5% in premarket trading after the company grounded all flights nationwide, according to an FAA advisory.
Europe’s Stoxx 600 added 0.3%, with major markets including Germany shut and others, such as London and Paris, scheduled to close early. France’s CAC 40 outperformed after Prime Minister Francois Bayrou said he aimed to reduce the country’s budget deficit to near 5%.
The S&P 500 is on its way to record a stellar annual return and back-to-back years of more than 20% gains. The index has risen about 25% since the end of 2023. The top seven biggest technology stocks accounted for more than half of the advance, though market breadth improved in the latter half of the year.
European stocks, by contrast, have lagged amid lackluster economic growth and political upheaval in France and Germany. The Stoxx 600 has dropped more than 4% since a September high, heading for its biggest quarterly loss in two years.
“The year is ending with a renewed strength in the US market, thanks to an increase in breadth,” said Alberto Tocchio, a portfolio manager at Kairos Partners. “The reality is that US growth has surprised everybody as it’s been very resilient, while unfortunately Europe is closing very downbeat as it still struggles to get some growth.”
Among individual movers in Europe, Vistry Group Plc plunged as much as 20% after the UK homebuilder lowered its earnings guidance for the third time in as many months.
Asian stocks rose, with shares in Mainland China and Hong Kong among the best performers, while those in Japan were mixed. Taiwan Semiconductor Manufacturing Co. touched a new record high, while Honda Motor Co. jumped after announcing a share buyback.
MSCI’s Asian equity benchmark is still headed for its first quarterly loss since September 2023, losing 6.8% over the period, even as the S&P 500 has risen 3.7%. Sentiment has soured in Asia in recent months due to concerns over higher global tariffs threatened by US President-elect Donald Trump, a stronger dollar and China’s lackluster economic recovery.
Nissan Motor Co. shares slid as much as 7.3% in Tokyo after the company confirmed it’s in talks with Honda over a possible business integration. Honda climbed as much as 14% after saying it will buy back as much as ¥1.1 trillion ($7 billion) of its stock.
Treasury yields ticked higher, while Bloomberg’s gauge of the dollar was steady. The yen fluctuated amid meager volumes as Japanese finance minister Katsunobu Kato warned about excessive foreign-exchange moves.
In China, policymakers are planning to sell 3 trillion yuan ($411 billion) in special treasury bonds in 2025, an increase from 1 trillion yuan this year, Reuters reported Tuesday, citing two sources it did not name.
Oil climbed in subdued trading ahead of the holidays after a three-day selloff, with focus on a strengthening dollar and President-elect Donald Trump’s roiling of international politics. Gold edged higher.
Key events this week:
- Christmas Day, Wednesday
- US initial jobless claims, Thursday
- Boxing Day, Thursday
- Japan Tokyo CPI, unemployment, industrial production, retail sales, Friday
- US goods trade, Friday
Some of the main moves in markets:
Stocks
- S&P 500 futures rose 0.1% as of 7:20 a.m. New York time
- Nasdaq 100 futures rose 0.2%
- Futures on the Dow Jones Industrial Average were little changed
- The Stoxx Europe 600 rose 0.3%
- The MSCI World Index was little changed
Currencies
- The Bloomberg Dollar Spot Index was little changed
- The euro was little changed at $1.0401
- The British pound was little changed at $1.2546
- The Japanese yen was little changed at 157.10 per dollar
Cryptocurrencies
- Bitcoin rose 0.2% to $94,046.64
- Ether fell 0.6% to $3,398.47
Bonds
- The yield on 10-year Treasuries advanced two basis points to 4.60%
- Germany’s 10-year yield advanced four basis points to 2.32%
- Britain’s 10-year yield advanced three basis points to 4.58%
Commodities
- West Texas Intermediate crude rose 0.6% to $69.67 a barrel
- Spot gold rose 0.1% to $2,615.94 an ounce
This story was produced with the assistance of Bloomberg Automation.
--With assistance from Rob Verdonck, Michael Msika and Chiranjivi Chakraborty.
©2024 Bloomberg L.P.