Asian markets closed in the red today amid end-of-year profit taking and higher risk aversion. Despite recent news of more government stimulus and upcoming corporate tax cuts, the Nikkei 225 slid -1.57% today. In contrast, the Yen strengthened against the USD and is currently trading at 119.66.

In Europe, the flight to safety continues as implications about the Greek snap elections affect trading. Investors fear that the anti-bailout Syriza party could win the elections and cause disruption in Greece’s recovery plans, thus adding pressure to the Euro. The bloc’s currency currently continues to trade close to its recent low of 1.2124.

In commodities, Brent futures dipped to $57.38 as supply glut concerns overshadow the recent Libyan turmoil.

US Market

Last full trading day of the year in the US. As Santa’s rally loses traction, investors are likely to focus on home prices and consumer confidence data amid thin volumes.


European stocks suffered a fall mainly caused by political volatility in Greece, decreasing oil prices and a drop in consumer prices in Spain. The Stoxx Europe 600 declined by 0.8% to 342.77 points. The Greek elections are likely to be held on the 25th of January hinting that the uncertainty in the market can be expected to last through most of next month.

The State Administration of Foreign Exchange in China withdrew some of its constraints on banks’ foreign exchange holdings, allowing them to hold fewer dollars and resulting in the largest one-day gain of 0.32% for the yuan since May this year. This is one of the measures taken by the government to make market forces a greater influence in the economy.