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Global stocks mostly lower on last day of the year, oil in focus

Published 31/12/2015, 09:39 pm
© Reuters.  Global stocks mostly lower on last day of the year
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Investing.com - Global stock markets were mostly lower on Thursday, the last day of 2015, as investors continued to track movements in the oil market.

Oil prices ticked modestly higher Thursday, after falling more than 3% in the prior session after data showed a surprise buildup in U.S. oil stockpiles.

West Texas Intermediate oil futures are on track to post an annual decline of 31% in 2015, while Brent oil prices are down nearly 36%, as oversupply concerns dominated market sentiment for most of the year.

Holidays limited the damage in Asian markets, with many either closed or shutting early. European shares were lower ahead of a shortened trading session on the last day of 2015. Meanwhile, U.S. markets wrap up the last week of trade for the year on Thursday, and are closed Friday for New Year's Day.

Heading into the final trading session of the year, volumes are expected to remain light, reducing liquidity in the market which could result in exaggerated moves.

The U.S. is to produce weekly data on initial jobless claims at 8:30AM ET, followed by a report on manufacturing activity in the Chicago region at 9:45AM. A recent run of mixed economic data failed to offer clues as to how fast the Fed will raise rates next year.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.15% at 98.45 during European morning hours.

With the first U.S. rate hike since 2006 out of the way, the focus is now on the pace of future rate increases. The Federal Reserve, from its forecasts, is anticipating four rate hikes next year.

Meanwhile, gold prices were little changed in quiet trade. The precious metal is on track to post an annual decline of 11% in 2015, the third yearly loss in a row, as speculation over the timing of a Fed rate hike dominated market sentiment for most of the year.

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