Affected by year-end uncertainty, some investors chose to reduce their holdings, and European stock markets recorded a slight decline on Monday (December 30th), following the weak performance of Asian markets.

European stock markets fell slightly on Monday as government bond yields rose, prompting investors to withdraw from the stock market at the end of this year. The Stoxx 600 index fell 0.4% as trading volume was relatively light during the holiday season. The German DAX index is expected to rise 19% this year, outperforming similar indices in the UK and France.

Trading was light before the New Year holiday, and several European markets will close early on Tuesday.

The US futures market continues the downward trend on Wall Street last Friday, with the stock prices of the "Big Seven" technology stocks retreating, causing a setback to the market's upward momentum this year. Although there is no obvious triggering factor, the trading volume is only two-thirds of the daily average level.

The 39th President of the United States, Jimmy Carter, passed away on Sunday at his home in Plains, Georgia. Traditionally, the US stock market is closed on the day of a presidential funeral, but the exchange has not yet released any relevant announcements.

The best choice at this time is to remain cautious. The United States remains the preferred investment destination, with growth stocks performing well and good profit forecasts, so there is still reason to remain optimistic, "said Nicolas Domont, fund manager at Optigesion

The S&P 500 has risen by 25% so far this year, and the Nasdaq has risen by 31%. Compared with the risk-free yield of US treasury bond bonds, such valuation is too high. According to LSEG data, investors expect earnings per share to grow by just over 10% in 2025, compared to an expected growth of 12.47% in 2024.

The Santa Claus market has ended, have you seen this year's performance? "Said Kenny Polcari, strategist at SlateStone Wealth LLC. He added, "This week is another shortened trading week with lower trading volume and potential for increased volatility. Don't make major investment decisions during this time

Asian stock markets have ended their five-day streak of gains. Although most Asian stock markets fell on Monday, the MSCI Asia Pacific Index rose 7.6% for the year, thanks to loose monetary policies from central banks and optimism about the rise of technology stocks driven by artificial intelligence.

The Nikkei index in Japan fell 0.9%, but has risen by about 20% so far this year. The South Korean stock market has performed poorly, suffering from political uncertainty in recent weeks and falling 9% this year, but rising 0.3% on Monday.

Jeju Air's stock price fell to a historic low of 8.7% due to the crash of a Boeing 737-800 plane on Sunday. Boeing fell more than 4% in pre-market trading in the United States. Investigators are currently focusing on the possibility of bird strikes or landing gear malfunctions. Boeing has stated that it has been in contact with Jeju Air and is prepared to provide support.

Nissan's shares fell 5.7% in Tokyo as its proposed partnership terms with Honda may reduce investors' shareholding in the new company.

Due to the approaching New Year holiday and relatively scarce data schedule this week, market trading volume is low. China will release its Manufacturing Purchasing Managers' Index (PMI) on Tuesday, while the United States will release its December ISM survey data on Friday.

In terms of other assets, US treasury bond bonds rose, and the 10-year yield fell from the highest point since May, rising about 75 basis points throughout the year, even though the Federal Reserve cut interest rates by 100 basis points this year.

The sustained rise in bond yields, driven by a reassessment of expectations for loose monetary policy, has raised some concerns, "said Quasar Elizundia, research strategist at broker Pepperstone.

He added, "The Federal Reserve may maintain a tight monetary policy for a longer period of time than expected, which could weaken expectations for corporate profit growth in 2025 and thus affect investment decisions

Bond investors may also remain wary of increased supply, as US President elect Donald Trump has promised tax cuts but has few specific proposals on how to control the budget deficit.

The previous gains in German bonds were erased as data showed that Spanish inflation accelerated faster than expected this month, supporting the view that the European Central Bank would gradually cut interest rates.

In terms of the currency market, the US dollar index has remained stable, rising more than 7% this year, mainly due to expectations of the "America First" policy after Trump's election as president.

Trump is expected to issue at least 25 executive orders after taking office on January 20th, covering various areas from immigration to energy and cryptocurrency policies. The widening interest rate spread has continued to make the US dollar popular, rising 6.5% against a basket of major currencies this year.

In terms of commodities, the crude oil market has remained calm in trading, with prices recording losses throughout the year and a narrow trading range since mid October. Crude oil has experienced a difficult year, especially with demand concerns from China suppressing prices, forcing OPEC+to extend production cuts multiple times.

Gold slightly weakened to around $2620, and the price of gold has still risen by 28% so far this year, expected to record one of the largest annual gains of the century.