Mixed day for global stocks as dollar pushes higher

New York: Global stocks began 2025 in muted fashion while thedollaradvanced Thursday as markets gird for a much heavier news flow later in January wit...

New York: Global stocks began 2025 in muted fashion while the dollar advanced Thursday as markets gird for a much heavier news flow later in January with the inauguration of President-elect Donald Trump. US stocks opened the day higher but tumbled into the red mid-session before concluding the day modestly lower. "It feels like we won't have all of the players back until Monday," said Art Hogan of B. Riley Wealth Management. "We're stuck in holiday mode." London, bolstered by rising commodity shares to offset banks going in the opposite direction, closed with a one percent gain, while Frankfurt ended 0.6 up and Paris eked out a narrow gain. The Hong Kong and Shanghai stock markets had set a negative tone earlier, slumping more than two percent while Tokyo was closed. Investors are gearing up for big changes in the weeks ahead, especially the January 20 presidential inauguration of Trump, who has threatened deep tariffs that could rattle international trade.

There are also significant economic releases in the coming period relating to the job market, inflation and retail sales during the holiday shopping season.

"We know that part of the policy mix that the incoming president is recommending is pro-growth and part could cause some market volatility like the policies around trade and immigration," said Angelo Kourkafas of Edward Jones.

The dollar index hit its highest level against other currencies since November 2022, reflecting expectations that the US economy will outpace others. Both the euro and the pound fell sharply against the US currency.

"Optimism about the strength of the mighty US economy remains buoyant for 2025," Susannah Streeter, head of money and markets at Hargreaves Lansdown, said Thursday.