Volkswacht Bodensee - Stocks steady as rate cut hopes bring Christmas cheer

Equities have been buoyed in recent weeks by expectations the Federal Reserve would lower borrowing costs further in 2026, with data showing US unemployment rising and inflation easing.

Investors will look to delayed US gross domestic product figures and consumer sentiment data on Tuesday for further Fed signals.

Precious metals pushed higher on the back of expectations for more US rate cuts, which makes them more attractive to investors.

Gold jumped to a high above $4,497 per ounce, while silver was just short of $70 an ounce, with the US blockade against Venezuela and the Ukraine conflict adding support.

London and Frankfurt stock markets edged up, while Paris dipped.

"European stock markets appear to have entered a period of consolidation as we head into the final trading days of 2025," said Joshua Mahony, chief market analyst at Scope Markets.

"With the Santa rally period traditionally taking place over the final five days of the year, investors will be hoping that the bulls are gathering momentum for a final push tomorrow onwards," he added.

Asian markets enjoyed a bright start, although some stuttered as the day wore on.

Shanghai was higher, while Hong Kong dipped and Tokyo closed flat.

With few catalysts to drive gains on Wall Street, tech was again at the forefront of buying on Monday, with chip titan Nvidia and Tesla leading the way.

The tech sector has driven many global markets to all-time highs this year on huge AI investment, though the trade has been questioned in recent months, sparking fears of a bubble.

A blockbuster earnings report from Micron Technologies last week has helped reinvigorate tech firms.

On currency markets, the yen extended gains after Japan's Finance Minister Satsuki Katayama flagged authorities' powers to step in to support the unit, citing speculative moves in markets.

The yen suffered heavy selling after Bank of Japan boss Kazuo Ueda held off signalling another rate hike anytime soon following last week's increase.

Oil prices edged up, having jumped more than two percent Monday on concerns about Washington's measures against Caracas.

The United States has taken control of two oil tankers and is chasing a third, after President Donald Trump last week ordered a blockade of "sanctioned" tankers heading to and leaving Venezuela.

In company news, shares in Danish pharmaceutical giant Novo Nordisk jumped seven percent after the US approved its popular GLP-1 anti-obesity drug Wegovy to be administered in pill form for weight loss.

- Key figures at around 1045 GMT -

London - FTSE 100: UP 0.1 percent at 9,872.23 points

Paris - CAC 40: DOWN 0.2 percent at 8,108.57

Frankfurt - DAX: UP 0.1 percent at 24,315.08

Tokyo - Nikkei 225: FLAT at 50,412.87 (close)

Hong Kong - Hang Seng Index: DOWN 0.1 percent at 25,774.14 (close)

Shanghai - Composite: UP 0.1 percent at 3,919.98 (close)

New York - Dow: UP 0.5 percent at 48,362.68 (close)

Dollar/yen: DOWN at 156.00 yen from 156.99 yen on Monday

Euro/dollar: UP at $1.1795 from $1.1756

Pound/dollar: UP at $1.3501 from $1.3458

Euro/pound: UP at 87.36 pence from 87.35 pence

West Texas Intermediate: UP 0.1 percent at $58.06 per barrel

Brent North Sea Crude: UP 0.1 percent at $62.13 per barrel

O.Schlaepfer--VB