Stocks Steady Amid Policy Concerns and Year-End Maneuvers

Global stocks remained stable as investors cautiously navigated the end-of-year market amidst concerns over the incoming Trump administration's policies. U.S. Treasury yields increased, influencing market behavior, while China's December manufacturing growth was tepid. Meanwhile, the dollar strengthened, and commodities had mixed performances.

World stocks maintained stability on Tuesday as investors approached year-end trading with caution, largely due to apprehension surrounding the incoming Trump administration's potential policy changes. The absence of a 'Santa rally' was notable, with elevated U.S. Treasury yields applying pressure on stock valuations and subsequently boosting the dollar's standing against other currencies.

While MSCI's world share index remained flat, it was set to conclude 2025 with a commendable 16% annual gain, predominantly driven by a U.S. market rally. With the S&P 500 rising approximately 24%, it outpaced Asia's 8% and Europe's 5% gains. However, the mood turned cautious as U.S. Treasury yields increased, reflecting concerns over Trump's potentially inflationary policies.

In China, manufacturing saw minimal growth in December, though recovery in services and construction was observed. The dollar continued its strengthening trajectory, supported by higher yields and outperforming U.S. markets, as oil prices faced a second year of decline, contrasting with gold's impressive over 26% surge.

(With inputs from agencies.)