European stock markets were lower Monday, taking their lead from softer prices on Wall Street, as investors wound down and took profits at the end of year.
At the close of trade in Europe, London’s benchmark FTSE 100 index was down 0.8 percent compared with Friday.
In the eurozone, Frankfurt’s DAX 30 shed 0.7 percent and the Paris CAC 40 lost 0.9 percent.
On the other side of the Atlantic, New York’s the Dow — which ended last week on a fresh record high — was showing a mid-session loss of 0.6 percent.
Earlier in Asia, Tokyo’s Nikkei stocks index closed down 0.8 percent as investors cashed in ahead of the New Year holidays, but the final day of trading still saw the benchmark end up 18.2 percent from a year earlier.
“Investors appear to be growing a tad apprehensive about chasing the record-setting US equity market… into year-end,” said AxiTrader market strategist, Stephen Innes.
OANDA analyst Edward Moya described trading as “light” but said that “expectations remain in place for US stocks to continue march higher” at the start of 2020.
The US Federal Reserve “has clearly signalled they will not be tightening anytime soon, the US consumer continues to impress, and as fears of both a complete collapse with global trade talks and Brexit have abated,” he said.
Briefing.com analyst Patrick O’Hare similarly believed that the declines seen on Monday would not undo the strong rally of recent weeks.
These past few weeks were “a terrific turn in a terrific quarter (+8.8 percent) that is ending a terrific year,” he said.
Analysts attribute the successive series of US records to upbeat investor sentiment based on a lower risk of recession in the immediate future, a mellowing of US-China trade tensions, and accommodative monetary policy.
In Asia, investors will be watching for key policy announcements in the region later this week.
North Korean leader Kim Jong Un is set to give his New Year’s speech on Wednesday, with all eyes on nuclear-armed Pyongyang’s threat of a “new way” after its end-of-year deadline for sanctions relief from the US, analysts said.
Chinese President Xi Jinping is also scheduled to give a New Year’s address.
Key figures around 1645 GMT
London – FTSE 100: DOWN 0.8 percent at 7,587.05 points (close)
Frankfurt – DAX 30: DOWN 0.7 percent at 13,249.01 (close)
Paris – CAC 40: DOWN 0.9 percent at 5,982.22 (close)
EURO STOXX 50: DOWN 0.9 percent at 3,749.20
New York – Dow: DOWN 0.6 percent at 28,487.58
Tokyo – Nikkei 225: DOWN 0.8 percent at 23,656.62 (close)
Hong Kong – Hang Seng: UP 0.3 percent at 28,319.39 (close)
Shanghai – Composite: UP 1.2 percent at 3,040.02 (close)
Euro/dollar: UP at $1.1217 from $1.1177
Dollar/yen: DOWN at 108.84 yen from 109.11
Pound/dollar: UP at $1.3135 from $1.3118
Euro/pound: UP at 85.40 pence from 85.36 pence
Brent Crude: DOWN 0.7 percent at $66.34 per barrel
West Texas Intermediate: DOWN 0.6 percent at $61.38 per barrel