United States
US markets kicked off the anticipated “Santa Claus Rally” on Tuesday, driven by a surge in megacap technology stocks, in a shortened session ahead of the Christmas holiday. The santas claus rally period is generally considered as the final five trading days of the year, and first two trading days of the new year. The S&P 500 climbed 1.1%, while the Nasdaq 100 added 1.4%, led by gains in Tesla Inc., Broadcom Inc., and Advanced Micro Devices Inc. The Dow Jones Industrial Average rose 0.9%. The Bloomberg Magnificent 7 Total Return Index outperformed, rising 2.1%.
Investors remained optimistic about the strong seasonality into year-end, with historical data showing the S&P 500 typically gaining 1.3% during the last five trading days of December and the first two of January. “This is a pivotal period for institutional portfolios heavily weighted in big tech,” said Matt Maley of Miller Tabak.
The yield on 10-year Treasuries was little changed at 4.59%, reflecting steady sentiment in bond markets. Meanwhile, the Bloomberg Dollar Spot Index was also flat, indicating minimal currency market activity. Ahead this week, investors will focus on initial jobless claims and continuing jobless claims data tonight followed by wholesale inventories data on Friday in what will be a relatively quiet time for economic data leading into the end of the year.
Europe
European equities finished modestly higher ahead of Christmas, while markets will be closed for a public holiday today. The Euro Stoxx 600 gained 0.18% along with the CAC 0.14% and FTSE100 0.42% while the DAX edged -0.18% lower. Between now and the new year, there are no major data releases for the region.
Australia
The ASX is closed today for the Boxing Day public holiday, while ASX200 futures finished up 0.24% before Christmas, signalling a modest gain when trading resumes on Friday. The ASX 200 extended its rally, closing 0.2% higher at 8220.9 during a shortened Christmas Eve session, buoyed by Wall Street’s positive lead. After Monday’s 1.7% surge—the index’s best session in six months—traders saw broad-based gains across sectors, led by real estate and healthcare.
Notable stock movements included Avita Medical, which rose 3.4% after securing FDA pre-market approval for its Recell Go mini product. Meanwhile, St Barbara plummeted 34.4% following a $206.6 million tax bill from the Papua New Guinea government. Major miners struggled as iron ore futures slid 0.7%; BHP fell 0.4%, and Rio Tinto declined 0.8%.
The Reserve Bank of Australia’s December meeting minutes hinted at a cautious approach to rate cuts, with markets pricing a 59% chance of easing by February 2025. The Australian dollar remained steady near a two-year low at US$0.6230, reflecting the broader strength of the US dollar.
Commodities
Cryptocurrencies saw mixed movements, with Bitcoin climbing 3.6% to $97,221.11 and Ether up 0.8% to $3,445.48. Commodity markets showed strength in crude oil, with West Texas Intermediate advancing 1.2% to $70.10 a barrel, while spot gold rose 0.2% to $2,616.87 an ounce. Meanwhile iron ore futures in Singapore declined -0.63% to US$100.45 while copper was 0.66% higher.
Economic Calendar
No major data releases
This article was written by Paul Darwell, Rivkin Securities Pty Ltd. Enquiries can be made via [email protected] or by phoning +612 8302 3632.
