Global Market Steadies Amid Uncertainty

World shares remained steady as elevated government bond yields caused investors to pull out of equities. Despite thin trading volumes and regional holidays, global and regional indices showed varied performance. Economic reports and political developments continue to influence market sentiments.

World shares held steady on Monday as elevated government bond yields led investors to shy away from equities, maintaining focus on the end-of-year performance of regional markets. MSCI's broadest index of world shares remained flat but was still up 17% for the year, reflecting a positive trend.

Despite low trading volumes ahead of the New Year holiday, European stocks opened lower with the pan-European STOXX 600 index slipping by 0.3%, primarily affected by the technology and industrial goods sectors. Stock markets in Germany, Italy, and Switzerland were closed, while the UK and France had shortened trading sessions.

In Asia, China's blue-chip CSI300 Index rose by 0.5%, while South Korea's index was down 0.2% amid political uncertainty. Meanwhile, U.S. futures pointed to a decline following Friday's sell-off. The continued rise in bond yields and political changes under the upcoming U.S. administration are factors to watch as 2024 unfolds.

(With inputs from agencies.)