This week in the markets: global unrest can’t shake market hopes

With the end of the year in sight the US market continues its winning streak despite rising geopolitical tensions which now include an attempted coup in South Korea and the end of the Assad regime in Syria.

What’s more, market watchers seem sure that the good times will continue in 2025, with end-of-year forecasts predicting the S&P 500 has further to run.

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Geopolitical uncertainty rises

That is despite a host of known-unknowns emerging on the global stage. In South Korea, prosecutors have launched a criminal investigation into the country’s President over his attempt to impose martial law. That saw the Korean KOPSI index fall more than 2% on Monday to its lowest level in more than a year.

Events are even more dramatic in Syria, where rebels have taken control of the capital Damascas and have driven the President Bashar Al-Assad into exile in Russia. The reaction in financial markets included gains for oil, with Brent crude up 78 cents to $71.90 a barrel. Meanwhile, gold - a safe haven asset - rose by 1%.

Hope the US has further to run

But whatever uncertainty these events may hold, they don’t seem to be worrying investors in the world’s largest stock market. The S&P 500 and Nasdaq closed at new record highs on Friday, up 1% and 3.3% for the week, respectively. Futures suggest a flat start this week.

Looking to next year, US market watchers are in bullish mood. Analysts at Citigroup have forecast the S&P to hit 6,500 by the end of 2025, which would represent a rise of almost 7% from today’s level. 

UK shares rise despite growth fears

In the UK the FTSE 100 has started the week on the front foot, rising 0.5%. It was led higher by mining stocks, which rose by as much as 3% after China’s leadership signalled a “moderately loose” strategy for monetary policy in 2025.

Antofagasta, Rio Tinto and Anglo American all rose while Asia-focused Prudential added 2%, banking group Standard Chartered also rose on hope of faster growth.

There will be an update on the health of the UK economy on Friday when GDP numbers for October are released. Growth in the UK has been slowing and businesses are warning that the recent changes announced in the Budget will add to their costs.

Domino’s Pizza Group has revealed it is facing a cost hit of about £3million a year from the change to increase employers’ national insurance contributions and further increase the national minimum wage.

Finally, Bitcoin has fallen back from the $100,000 mark hit last week, falling more than 2% in trading today.  The great and the good of the crypto world have gathered in Abu Dhabi for the largest ever Bitcoin conference in the region, with leading Trump figures scheduled to speak. 

• Read: Bitcoin hits $100k: the new FOMO phase

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