Marketmind: No let up in sombre New Year market mood

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A look at the day ahead in European and global markets from Kevin Buckland.

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04 Jan 2024

A look at the day ahead in European and global markets from Kevin Buckland

Global stocks extended 2024's weak start into Thursday, exacerbated by Japan's return from an extended New Year holiday.

Equity investors there not only got their first chance to react to the global selloff, but to the massive quake that ravaged Ishikawa prefecture, north-west of Tokyo, on New Year's Day.

Japan's Nikkei fell more than 1%, outpacing declines in the rest of the region, with the notable exception of China, where the blue-chip CSI 300 dropped 1.4%.

It all bodes poorly for Europe, with plenty of room left to fall from nearly two-year peaks, even after Wednesday's almost 0.9% slide for the STOXX 600.

Hanging over everything is the euphoric, late-2023 build-up in bets for a U.S. soft landing and rapid Fed rate cuts, which are now being dialled back.

Minutes of the Fed December meeting didn't add any fuel to the Powell-pivot bonfire; if anything, they contained a dose of cold water, as