European stock markets retreated Friday, as traders booked profits from a positive start to 2025 and awaited a full return to business next week.
Asia鈥檚 main equity indices closed mostly higher, with Seoul jumping nearly two per cent despite deepening political uncertainty in Asia鈥檚 fourth-largest economy.
There were gains also for Hong Kong, Sydney and Taipei, although Shanghai slumped for a second session running.
Wall Street ended lower Thursday on the first US trading day of 2025.
鈥楾he post-Christmas malaise in US stocks continued as investors await the inauguration of president-elect Donald Trump who could prove a wildcard for markets this year,鈥� noted Russ Mould, investment director at AJ Bell.
According to US media, departing President Joe Biden has decided to block the proposed $14.9 billion purchase of US Steel by Japan鈥檚 Nippon Steel and will announce the move as soon as Friday.
Nippon Steel has described the transaction as a lifeline to Pennsylvania鈥檚 much-diminished steel industry.
US stocks had opened higher Thursday before ending modestly lower.
The Wall Street losses were driven in part by disappointing results from Tesla, which slumped 6.1 per cent after fourth-quarter auto sales lagged expectations.
The dollar dipped Friday against the euro, pound and yen.
The US currency had Thursday reached multi-year highs against some of its main rivals, reflecting expectations that the world鈥檚 biggest economy would outpace others in 2025.
The yuan on Friday hit the lowest dollar level since late 2023.
鈥楾he very negative performance of China equities provides a better indication of the weakening sentiment around China assets at the start of 2025, and ahead of Trump鈥檚 return to the White House,鈥� said Alvin Tan, head of Asia FX strategy at RBC Capital Markets.
Investors are gearing up for Trump鈥檚 inauguration on January 20, set to be followed by the formal announcement of deep tariffs, especially on Chinese goods, that could rattle international trade.
US jobless claims released Thursday fell more than expected, highlighting a robust labour market and leaving the Federal Reserve with less reason to support fresh rate cuts.
Other significant economic releases ahead include data on inflation and retail sales during the holiday shopping season.