Global financial markets experienced a subdued and fragmented trading session on Friday, December 26, as widespread closures for the Boxing Day holiday sharply curtailed investor participation and liquidity across major hubs.
Major Exchanges Shut, Trading Activity Fragmented
The extended Christmas break led to shutdowns at several key global exchanges, leaving trading activity thin and regionally split. Markets in Australia, Hong Kong, and much of Europe remained closed. Specifically, the Hong Kong's Hang Seng and the Australian Securities Exchange (ASX) were shut. In Europe, the holiday shuttered the London Stock Exchange, Euronext markets in Paris, Amsterdam, and Brussels, the Irish Stock Exchange, SIX Swiss Exchange, and Nordic bourses in Stockholm and Helsinki.
While a handful of European markets, including those in Germany, Italy, and Spain, were technically open, liquidity was significantly muted due to the holiday period. Boxing Day, observed on December 26, is a public holiday in nations like the UK, Ireland, Australia, and parts of Europe, traditionally leading to thin trading conditions in open markets.
Asian Markets Defy Trend with Modest Gains
Despite the quiet backdrop, several Asian markets that remained open managed to post modest gains, building on the momentum from record-high closes on Wall Street earlier in the week. Key exchanges in the region, including the Tokyo Stock Exchange, Shanghai Stock Exchange, Korea Exchange, and Taiwan Stock Exchange, all edged higher.
Japan's TOPIX index climbed 0.5% to a fresh record high. South Korea's benchmark index rose 0.6%, cementing its position as the world's best-performing major stock market in 2025 with a staggering 72% annual gain. China's blue-chip index advanced 0.27%, putting it on track for an 18% yearly rise—its strongest annual performance since 2020.
Broadly, the MSCI Asia-Pacific stock gauge rose for a sixth straight session, gaining 0.4% to reach its highest level since November 14. The index has gained 25% year-to-date, showcasing robust year-end momentum.
Precious Metals Shine, Investor Focus Shifts to 2026
Beyond equities, precious metals captured significant attention. Spot silver surged over 4% to a record high, while gold also touched a new peak, trading at $4,503.39 per ounce. Analysts linked the rally to geopolitical concerns, including heightened tensions as Washington increased pressure on Caracas.
Looking ahead, investor focus is turning to the outlook for US monetary policy in the new year. Markets are currently pricing in at least two interest-rate cuts in 2026, with no move from the U.S. Federal Reserve expected before June. The Fed's own projection of just one cut next year has introduced caution.
Additionally, attention is on Donald Trump, as investors await his nomination for the next Fed chair to replace Jerome Powell, whose term concludes in May. Clarity on this front is expected to influence market direction as full-scale trading resumes in the final days of the year.
