• Oil prices have increased due to anticipated fiscal stimulus in China and expected decline in U.S. crude inventories.
• China plans to boost fiscal support for consumption, including issuing 3 trillion yuan worth of special treasury bonds.
• Stock market fluctuations have been observed, with the euro inching lower against the dollar due to expectations of Federal Reserve rate cuts.
• Gold has outperformed major indices due to geopolitical tensions, and political messages from US presidents vary this holiday season.

Oil prices have seen a slight increase recently, driven by the anticipation of additional fiscal stimulus in China, the world's largest oil importer. This rise is also supported by the expected decline in U.S. crude inventories. Brent crude futures rose by 13 cents, or 0.2%, to $73.71 a barrel, while U.S. West Texas Intermediate crude was at $70.21 a barrel, up 0.2%, or 11 cents, from the pre-Christmas settlement.

China's plans to boost fiscal support for consumption in the coming year have been a significant factor in this development. The country intends to increase pensions and medical insurance subsidies for residents and expand trade-ins for consumer goods, as announced by the finance ministry. Furthermore, Chinese authorities have agreed to issue 3 trillion yuan ($411 billion) worth of special treasury bonds next year, as reported by Reuters. This move is part of Beijing's strategy to ramp up fiscal stimulus to revive its faltering economy.

Crude oil prices have risen this week, driven by news that Chinese authorities are implementing a record-breaking 3 trillion yuan fiscal stimulus to boost their struggling economy, said Priyanka Sachdeva, senior market analyst at Phillip Nova. Additionally, a decrease in U.S. crude oil inventories, which indicates healthy demand, has also supported prices.

Global Market Fluctuations and Currency Trends

In related news, the stock market has seen some fluctuations. After opening in green, Benchmark indices Sensex and Nifty dropped on Thursday, driven by losses in index heavyweights TCS, ICICI, and HDFC Bank. In early trade, eight of the 13 major sectors advanced. High-weighted financials gained 0.5%, which analysts attributed to investors searching for safety due to cheaper valuations. The broader smallcaps and midcaps each shed 0.2%.

In the currency market, the euro inched lower against the dollar on Thursday as the dollar remained well supported by expectations that the Federal Reserve will cut rates at a measured pace next year. The dollar has rallied against its major peers, helped by the rise in U.S. Treasury yields since Trump's election victory in early November.

Commodities Market and Political Developments

In the commodities market, gold clocked close to 27% returns during the year, outperforming both the Nifty 50 or S&P 500 index due to the ongoing geopolitical tensions, which increased the safe haven appeal of bullion. The total demand for gold bullion also crossed $100 billion for the first time ever during the third quarter of the year.

In the political sphere, the outgoing and incoming US presidents had different messages for the Christmas holiday. Democrat Joe Biden urged Americans to reflect and unite, while Republican Donald Trump offered a holiday greeting and then took aim at his political opponents.