Stock Market Holiday: Global markets are largely at a muted today aming thin trading activity as several major global exchanges remain shut on account of Boxing, leaving trading activity fragmented across regions.
With markets in Australia, Hong Kong and much of Europe closed following the Christmas break, investor participation has narrowed sharply, even as select Asian markets continue to trade and attempt a late-year rally amid subdued volumes.
Along with Hong Kong’s Hang Seng and Australian Securities Exchange (ASX), key European exchanges shut for the holiday include the London Stock Exchange, Euronext markets in Paris, Amsterdam and Brussels, the Irish Stock Exchange, SIX Swiss Exchange, and Nordic bourses such as Stockholm and Helsinki. While a few European markets such as Germany, Italy and Spain are open, liquidity across the region remains muted due to the extended holiday period.
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Boxing Day, observed on December 26, is a public holiday in several countries including the UK, Ireland, Australia and parts of Europe. The holiday traces its origins to the tradition of distributing “Christmas boxes” to workers and the less fortunate on the day after Christmas. In modern financial markets, Boxing Day is associated with widespread exchange closures and sharply reduced participation, often leading to thin trading conditions and subdued price action in markets that remain open.
Despite the closures elsewhere, several Asian markets remained open and edged modestly higher. Regional stocks extended gains after US equities closed at record highs earlier this week. Tokyo Stock Exchange, Shanghai Stock Exchange, Korea Exchange, and Taiwan Stock Exchange all posted gains on Friday.
Japan’s TOPIX climbed to a fresh record high and was last up 0.5%. South Korea’s benchmark index rose 0.6%, pushing its gains for the year to 72%, making it the best-performing major stock market globally in 2025. China’s blue-chip index advanced 0.27% and is on track to end the year up 18%, marking its strongest annual performance since 2020.
MSCI’s broad Asia-Pacific stock gauge rose for a sixth consecutive session, lifting it to its highest level since November 14. The index was last up 0.4% and has gained 25% so far this year, reflecting strong year-end momentum despite holiday disruptions. This followed record-high closes for US equities on Wednesday, ahead of the Christmas break.
Beyond equities, precious metals dominated market attention. Spot silver surged more than 4% on Friday to a record high, while gold also touched a fresh peak, last trading at $4,503.39 per ounce. The rally has been underpinned by geopolitical concerns, particularly rising tensions as Washington steps up pressure on Caracas by blockading sanctioned oil vessels linked to Venezuela.
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Looking ahead to the new year, investors remain focused on the outlook for US monetary policy. Traders are currently pricing in at least two interest-rate cuts in 2026, though they do not expect the U.S. Federal Reserve to move before June. The central bank itself has projected just one cut next year, and divisions within the Fed have kept markets cautious.
Attention is also on Donald Trump, with investors awaiting his nomination for the next Fed chair to replace Jerome Powell, whose term ends in May. Any clarity on this front could influence markets as trading resumes more fully in the final days of the year.
