Stock Market Cues: Domestic equity markets, as well as major global exchanges, were closed on December 25 for Christmas. Some global markets are shut even on December 26, on account of post-Christmas holiday. This suggests that trading volumes are likely to be thin today.
As trading resumes on December 26, market participants are expected to react to fresh geopolitical developments, key economic data from Japan, fluctuations in crude oil prices, and the rupee-dollar exchange rate, among other cues.
Stock Market Cues To Watch On Dec 26
Following are the key share market cues that are likely to influence investor sentiment in trade on December 26:
US Stock Market
US stock market, too, was shut on December 25 on account of Christmas. On December 24, Wall Street's benchmark indices closed higher, led by revival of AI trade after last week's selloff occurred due to concerns over stretched valuations of these counters.
At close, Dow Jones was up 0.60 per cent, S&P 500 was up by 0.32 per cent and the tech-heavy Nasdaq Composite was up 0.22 per cent.
Asian Stock Markets
Asian markets were trading higher on December 26 morning. Japan led the early gains, as Nikkei 225 traded around 1 per cent higher, hovering around its two-week high. The broader Topix touched a fresh record high, trading higher by around 0.50 per cent.
South Korea's Kospi was up by 0.70 per cent, and China's blue-chip CSI 300 traded up by 0.60 per cent. Hong Kong's Hang Seng is shut today on account of post-Christmas holiday. Australian, Canadian and most of the European markets are also closed today.
Japan’s Core Inflation Data
Core consumer inflation in Japan slowed in December as food price pressures eased, but it stayed above the Bank of Japan’s 2 per cent target, data released earlier today showed, keeping the case for further interest rate hikes intact.
"The data backs up the Bank of Japan's (BoJ) view that core inflation will slide below its 2 per cent target in coming months on easing cost pressure, before resuming a more demand-led increase that justifies additional rate increases. But some analysts warn of the risk renewed yen declines may prod firms to keep raising prices, leading to sticky, cost-led inflation that could quicken the pace of BOJ rate hikes," Singapore-based Channel News Asia said in a report.
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US-Venezuela Oil Tensions
The White House has asked US forces to largely prioritise enforcing a “quarantine” on Venezuelan oil shipments for the next two months, signalling that Washington is leaning more on economic pressure rather than military action to pressurise Venezuela, a US official told Reuters.
The announcement comes after recent US operations in Venezuela resulted in at least 105 deaths.
Crude Oil Prices Today
Crude oil prices traded higher in early trade on December 26 amid supply concerns after US’ tightening of economic pressure on Venezuelan oil shipments and US forces’ air strikes on Islamic State militants in Nigeria.
Brent crude oil futures surged as much as 0.40 per cent to hit the day's high at $62.49 a barrel, while the West Texas Intermediate (WTI) crude oil futures climbed up to 0.41 per cent to touch the day's high at $58.59 per barrel.
US Air Strikes ISIS In Nigeria
The US carried out an airstrike against ISIS terrorists in northwest Nigeria, US President Donald Trump announced on the eve of Christmas.
“Tonight, at my direction as Commander in Chief, the United States launched a powerful and deadly strike against ISIS Terrorist Scum in Northwest Nigeria,” Trump wrote on his Truth Social platform. “I have previously warned these Terrorists that if they did not stop the slaughtering of Christians, there would be hell to pay, and tonight, there was.”
The strike comes weeks after Trump directed the Pentagon to prepare for potential military action in Nigeria amid reports of Christian persecution.
