The U.S. dollar has been a standout performer, gaining approximately 6% this year against a basket of major currencies. This demand has been driven by widening interest rate differentials, which make the dollar more attractive to investors. However, this strength has weighed on gold prices, limiting the metal’s upside despite a 27% year-to-date gain, with gold currently priced at $2,621 per ounce.
Oil markets faced headwinds throughout the year. Concerns about reduced demand from China and the potential for increased U.S. supply in 2025 have kept prices subdued. This environment forced OPEC+ to repeatedly extend production cuts to stabilize the market.

Asia-Pacific Markets
In Asia, China’s blue-chip CSI300 Index rose 0.5% on Monday, bringing its yearly gain to nearly 16%. Much of this increase came during a brief rally in September following Beijing’s announcement of additional stimulus measures. Looking ahead, the spotlight will be on China’s Purchasing Managers' Index (PMI) report on Tuesday, which is expected to provide insight into the health of its manufacturing sector.
The dollar remained strong against the yen, hovering near a five-month high at 157.52. Market participants remain cautious, as the risk of Japanese intervention has kept the yen from breaching the 160.00 level.

European Markets
In Europe, thin trading volumes characterized the session ahead of the New Year holiday. Markets in Germany, Italy, and Switzerland are closed on Tuesday, while the UK and France have shortened trading hours.
The euro edged up 0.2% to $1.0447, but the currency remains under pressure, having lost more than 5% against the dollar in 2024.

American Markets
Wall Street showed signs of caution, with S&P 500 futures dipping 0.5% and Nasdaq futures down 0.6% after Friday’s selloff. Despite the recent weakness, U.S. equities have delivered robust gains this year. The S&P 500 has surged 25%, while the Nasdaq has climbed 31%, reflecting strong investor sentiment for technology and growth-oriented sectors.
Investors will closely monitor U.S. manufacturing data for December, scheduled for release on Friday, for further signs of economic activity heading into the new year.