The U.S. dollar remains near a two-year high, buoyed by elevated U.S. Treasury yields as investors adjust their expectations for Federal Reserve rate cuts in 2025. The euro softened slightly, down 0.1%, while the yen lingered near its five-month low of 157.08 per dollar.
Meanwhile, gold prices remained stable at $2,613 per ounce, marking a 27% rise this year—the largest annual gain since 2010. Oil markets also showed modest gains, with Brent crude futures up 0.6% at $73.08 per barrel and U.S. crude increasing 0.6% to $69.67 per barrel.

Asia-Pacific Markets
Asian markets displayed resilience, driven by China's plans to ramp up fiscal stimulus. Sources reported that Beijing intends to issue a record amount of special treasury bonds in 2024 to revive its slowing economy.
Japanese Finance Minister Katsunobu Kato reiterated Tokyo's concern over excessive foreign exchange volatility, signaling potential intervention to stabilize the yen. The currency has declined 4.7% this month, remaining pinned near a five-month low of 157 per dollar, keeping traders alert for any policy action.

European Markets
European shares edged higher in light trading on Tuesday, with German markets closed for the Christmas holiday.
The British pound showed a slight uptick, rising 0.1% to $1.2544 in holiday-shortened trading. However, sterling has lost 1.6% in December, marking its third consecutive monthly decline. Against the euro, the pound strengthened 0.14%. Despite recent losses, sterling has gained over 4% against the euro this year, returning to levels last seen during the Brexit vote in 2016. Analysts anticipate increased volatility for the pound next year as global monetary policies diverge.

American Markets
With Donald Trump set to return to the White House in January, central banks globally are treading cautiously amid uncertainty surrounding his proposed economic policies, including tariffs, tax cuts, and immigration reforms.
December data revealed an unexpected dip in U.S. consumer confidence, reflecting waning post-election optimism and concerns about future business conditions.
Wall Street, entering its seasonally strong period, remained subdued ahead of Tuesday's shortened trading session. Trading volumes are expected to be thin in the year’s final days, raising the potential for choppy market movements.