World shares are mostly higher in holiday-thinned trading ahead of US growth and labor updates

Global Markets Mixed as Gold Hits Record High, Investors Await US Economic Data

World shares showed mixed performance on Tuesday during holiday-thinned trading as investors awaited crucial data on the U.S. economy’s third-quarter performance. Despite the lighter trading volume, gold continued its remarkable rally, touching new record highs.

In early trading, U.S. stock futures for both the S&P 500 and the Dow Jones Industrial Average edged up marginally by less than 0.1%. European markets showed minimal movement with Germany’s DAX inching 0.1% higher to 24,318.93, while France’s CAC 40 slipped 0.2% to 8,105.88. Britain’s FTSE 100 added 0.1%, reaching 9,873.63.

The precious metals market continued its impressive bull run, with gold surging 1% to $4,512.00 an ounce early Tuesday, extending its consistent gains throughout the year. Silver also climbed 1.4% to $69.52 an ounce, reflecting broader investor interest in safe-haven assets amid economic uncertainty.

In Asia, Tokyo’s Nikkei 225 remained flat at 50,412.87, while currency markets saw significant movement after Japanese officials warned of potential intervention if the yen weakened further. The dollar retreated to 155.95 yen, down from 157.04 yen late Monday, despite expectations that the Bank of Japan’s recent rate hike would strengthen the Japanese currency.

“The hint of currency intervention proved to be such a serious threat that the yen, which had been significantly oversold after the Bank of Japan meeting, rose from the ashes,” noted Alex Kruptsikevich of FXPro.

Meanwhile, the euro strengthened against the dollar, climbing to $1.1797 from $1.1762.

Other Asian markets showed modest movements. Hong Kong’s Hang Seng gave up early gains to fall 0.1% to 25,774.14, while the Shanghai Composite index edged up 0.1% to 3,919.98. South Korea’s Kospi added 0.3% to 4,117.32, with shipbuilder Hanwha Ocean’s shares jumping 12.5% after President Donald Trump announced it would help build a new class of U.S. battleship at the Hanwha Philly shipyard.

Australia’s S&P/ASX 200 was a regional outperformer, jumping 1.1% to 8,795.70, while Taiwan’s Taiex advanced 0.6% and India’s Sensex remained virtually unchanged.

The shortened holiday trading week in the U.S. includes several important economic reports that could provide greater clarity on the world’s largest economy. The Commerce Department is scheduled to release its first of three estimates on gross domestic product for the third quarter later Tuesday, offering insights into the broader economic performance. On Wednesday, the Labor Department will provide its weekly update on unemployment benefit applications, a key indicator of labor market health.

Consumer sentiment will also be in focus as the Conference Board releases its December consumer confidence survey on Tuesday, providing another perspective on household optimism amid persistent inflation concerns.

Monday saw positive movement in U.S. markets, with the S&P 500 rising 0.6%, the Dow Jones Industrial Average gaining 0.5%, and the Nasdaq composite adding 0.5%. Notably, smaller companies outperformed major indexes, with the Russell 2000 posting a 1.2% gain.

Oil prices edged slightly higher after jumping more than 2% on Monday following the U.S. Coast Guard’s announcement that it was pursuing another sanctioned oil tanker in the Caribbean. U.S. benchmark crude added 7 cents to $58.08 per barrel, while Brent crude gained 11 cents to $62.18 per barrel.

Recent economic indicators have presented a mixed picture of the U.S. economy. Reports show inflation remains elevated while consumer confidence has deteriorated over the past year. The job market has shown signs of cooling, and retail sales have weakened, creating challenges for Federal Reserve policymakers.

The ongoing U.S. trade tensions have added another layer of uncertainty for consumers and businesses already grappling with higher prices. Despite these economic headwinds, Wall Street analysts largely expect the Federal Reserve to maintain current interest rates at its January meeting, following three consecutive rate cuts, as inflation continues to run above the central bank’s 2% target.