The Paris stock exchange closed flat in a shortened session ahead of the long Christmas weekend, with global indices still hovering at record highs. The CAC 40 index ended the day stable at 8,104.87 points, continuing the trend seen for nearly a month now.

With many market participants already on holiday, trading volumes remained extremely thin and movements limited, as Euronext markets closed their doors at 2:00 p.m. and London wrapped up at 1:30 p.m. Elsewhere in Europe, the Frankfurt, Milan, and Zürich exchanges were already closed.

With little to report in terms of stocks or economic indicators, the few European markets remaining open on Christmas Eve are expected to drift quietly in a low-volatility environment.

Investors have clearly closed out their positions for the year and are taking a break to digest the strong performances recorded in 2025.

With one week left in the year, Paris's CAC 40 is on track for a gain of nearly 10%—a respectable performance given the political uncertainty that has weighed on business confidence in France in recent months.

However, this lags behind the DAX (+22%) and the STOXX Europe 600 (+16%), both of which have benefited from improved economic prospects across the continent.

Equity markets have shown remarkable resilience despite the implementation of new U.S. tariffs, whose effects on growth and inflation have ultimately remained contained.

The New York Stock Exchange will also operate on a half-day schedule today, with an expected close at 1:00 p.m. local time.

Wall Street, trading at all-time highs, has been buoyed since last week's announcement of a sharp slowdown in U.S. inflation—a development that supports continued monetary easing from the Fed, following three rate cuts in recent months.

So far in 2025, the Dow Jones is up nearly 14%, the S&P 500 has gained more than 17%, and the Nasdaq Composite has surged over 22%.

Analysts expect the rally to continue into 2026, supported by robust global growth—despite an increasingly “K-shaped” configuration—and ongoing investments in AI, which now represent a significant share of economic activity.

While stock valuations remain high and a great deal of optimism is already priced in—leaving room for potential disappointment—corporate earnings are expected to keep rising.

On the currency market, the dollar continues its downward trend begun at the start of the year and is set to end the period down 14% against the euro, which is once again flirting with the 1.18 mark.

Strong equities and some year-end portfolio rebalancing are weighing on the bond market, with the yield on ten-year Treasuries climbing to 4.17%, its highest level in three months.

Brent crude is up 0.1%, remaining above $62 due to ongoing tensions between the United States and Venezuela, but the European benchmark is down 18% this year amid persistent fears of oversupply.

The ultimate safe haven, gold is unfazed by the current risk appetite and is up another 0.1% at $4,492, reaching historic highs. For the year as a whole, the yellow metal is set to post gains of around 73%.