After the benchmark S&P 500 closed at yet another record high following a report that revealed the US economy grew at an unexpectedly strong 4.3% annual rate in July to September, investors weighed the customary year-end Santa Claus rally against new indications of a late-season slowdown on Wednesday.
The tendency for share prices to climb in the last few days of December and the first trading sessions of the new year is known as a “Santa Claus rally” in financial jargon. This trend is often linked to lighter holiday trading, year-end portfolio changes, and an overall positive festive sentiment among investors. However, the trend is far from clear and has not shown up in years with increased market stress or economic uncertainty.
The Paris CAC 40 gained 0.2% to 8,121.32, while the British FTSE 100 fell 0.2% to 9,870.89. London, Paris, Hong Kong, and Australia are among the stock exchanges that have closed early or will close early on Christmas Eve. For the day, Germany’s markets were closed.
The US markets will remain closed on Christmas Eve and close early on Wednesday. In Asian trade, South Korea’s Kospi dropped 0.2% to 4,108.62 and Tokyo’s Nikkei 225 declined 0.1% to 50,344.10. At 25,818.93, Hong Kong’s Hang Seng increased by 0.2%. The Shanghai Composite index reached 3,940.95, up 0.5%.
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