World shares showed a mixed performance on Monday following a week where the benchmark S&P 500 experienced a 2% decline. The passing of a budget deal by U.S. lawmakers over the weekend helped alleviate concerns of a pre-Christmas government shutdown.
In European markets, Germany's DAX and France's CAC 40 both saw slight declines, while Britain's FTSE also dipped. Futures for the S&P 500 and Dow Jones Industrial Average showed modest gains.
Asian markets displayed more positive movements, with Japan's Nikkei 225 rising significantly. Japanese automakers Honda and Nissan announced plans for a potential merger, leading to a surge in their stock prices. Hong Kong's Hang Seng advanced, while the Shanghai Composite index slipped slightly.
Australia's S&P/ASX 500 and South Korea's Kospi both posted gains, with Taiwan's Taiex experiencing a notable jump. In Bangkok, the SET index also saw an increase.
On Friday, the U.S. stock market rallied, driven by Big Tech companies like Nvidia. Reports of lower-than-expected inflation provided a boost, following concerns raised by Fed Chair Jerome Powell regarding potential interest rate cuts next year.
The market's reaction to Powell's comments reflected a shift in expectations, with traders now anticipating fewer rate cuts in 2022. This adjustment comes after a year of record highs for the stock market, fueled by hopes of economic growth and regulatory changes under the Trump administration.
Oil prices saw a slight increase in early trading, with U.S. benchmark crude oil and Brent crude both edging up. The euro weakened against the dollar in Monday's trading.
