Markets in Europe and Japan Lead Global Indexes, Emerging Markets Struggle

Nichole Harper
30 Dec, 2015
New York City

Market indexes in the U.S. struggled to stay in the positive for the year and France and Germany led markets in Europe. In Asia, Japan closed up 9.1% for the year as index in India dropped more than 8% in 2015.

[R]11:30 AM New York City, New York – Market indexes in the U.S. struggled to stay in the positive for the year and France and Germany led markets in Europe. In Asia, Japan closed up 9.1% for the year as index in India dropped more than 8% in 2015.[/R]

Stocks in New York traded lower after another downturn in energy prices brought down oil explorers to new lows in the year.

On Wall Street, Tollbooth Strategy Index slid 22.09 or 0.2% to 10,930.84.

S&P 500 index fell 8.27 or 0.4% to 2,070.06 and the Nasdaq Composite Index slipped 24.69 or 0.5% to 5,083.36.

Crude oil in New York declined $1.01 to $36.86 a barrel and gold plunged $8.83 to $1,060.28 an ounce.

Crude oil has lost nearly two-third of its value since mid-2014 on the rising global supplies and falling demand in Asia.

With the weak demand in Asia, the price of Brent crude remained below the variety sold in the U.S. for the first time in many years.

Moreover, oil price outlook in 2016 looks bleak as Iran is preparing to add 500,000 barrels a day supply to the world mark which are already running at a surplus of 2 million barrels a day.

U.S. Movers

E I Du Pont De Nemours And Co ((DD)) slid 18 cents to $67.39 after the industrial conglomerate plans to reduce 1,700 jobs in Delaware to pursue the cost savings of about $700 million ahead of merger with Dow Chemical Co.

Fairchild Semiconductor International Inc ((FCS)) jumped 3.2% or 64 cents to $20.65 after the power management solution provider received an unsolicited offer of $21.70 a share or about $2.46 billion in cash from unknown bidder identified in SEC documents as ""Party G"".

European Markets

In London trading, FTSE 100 index fell 20.22 or 0.3% to 6,274.98 and in Frankfurt the DAX index decreased 117.13 or 1.1% to 10,743.01. In Paris, CAC 40 index slipped 17.05 or 0.4% to 4,684.77.

For the month, the DAX index plummeted 5.6% and the CAC 40 index declined 5.5%.

For the quarter, the DAX index soared 11.2% and the CAC 40 index soared 5.2%.

For the year, the DAX index jumped 9.6% and the CAC 40 index surged 10.4%.

Apple Italia, the Italian newspaper La Repubblica said the mobile devices maker agreed to pay €318 million or £234 million to settle tax dispute made by its subsidiary’s officials while declaring its earnings between 2008 and 2013.

Alstom SA gained 0.6% to €28.13 after the France-based transportation services provider lifted its stake by 8% from 25% in Russia-based Transmashholding, the largest railway engineering company from the Russian Railways for €54 million.

Gras Savoye, the France-based insurance broker said the U.S. listed and U.K.-focused Willis Group Holdings Plc completed its acquisition of remaining stake of 70% in the company.

Asian Markets

Nikkei 225 average in Tokyo closed up 9.1% and led the developed markets in the world. Bridgestone Corp said it has no plans to revise its offer higher for Pep Boys.

After another day in positive territory, the stock exchange in Japan closed 2015 as one of the best-performing stock markets in the world.

Nikkei 225 average surged 9.1% in 2015.

The strong 2015 performance reflects the asset purchase program of the Bank of Japan, the weaker yen, which boosts export, and the economic recovery in the U.S., the largest market for Japanese products.

Markets are scheduled to reopen on Monday and traders are already setting expectations for another year of gains.

The Nikkei 225 Stock Average gained 51.48 or 0.3% to 19,033.71 and the broader Topix index added 3.91 to 1,547.30.

In December, Nikkei 225 declined 3.6% but surged 9.5% in the December quarter.

The yen edged down against the U.S. dollar to 120.38.

Stocks in Mumbai opened higher but afternoon caution and profit booking led the widely followed indexes lower at close.

Stocks struggled after the worries of global economic growth resurfaced and investors remained cautious of the earnings season ahead.

Chrisitne Lagarde, chief of International Monetary Fund expressed her caution for the global growth in 2016 and cited rising interest rate environment in the U.S. and slowing growth profile in China.

In addition, market sentiment was cautious ahead of derivatives expiry on Thursday and shortened trading week.

Rupee eased 1 paisa to ₹66.39 against one U.S. dollar.

The Sensex Index fell 119.45 or 0.5% to close at 25,960.03. The CNX Nifty slid 32.70 or 0.4% to 7,896.25.

Bharti acquired 74% stake in Augere Wireless Broadband. SREI agreed to acquire leasing joint venture stake from its France-based partner BNP Paribas.