Post-Christmas Stock Purchases: A Global Perspective

As the holiday season comes to an end, investors around the world are eager to make post-Christmas stock purchases. However, while Americans have the opportunity to engage in trading, international investors will have to exercise patience.

Stock Market Closures: A Global Outlook

On Boxing Day, which always falls on December 26th, several international markets are closed in observance of this public holiday. Countries such as the U.K. and its former colonies including Canada, Australia, Hong Kong, and South Africa all observe this day with market closures.

For instance, stock markets in London, Toronto, Sydney, Hong Kong, and Johannesburg will be closed on Monday, December 25th, and Tuesday, December 26th. In addition, most European markets will also be closed during this time.

However, in the United States, investors can still indulge in stock trading. While the New York Stock Exchange and the Nasdaq Stock Market are closed on Monday, December 25th, in celebration of Christmas, they reopen on the following day.

Boxing Day Performance: A Closer Look

Traditionally, the day after Christmas brings moderate festive cheer to the U.S. stock market. According to Dow Jones Market Data, since 1928, the S&P 500 has exhibited an average gain of 0.3% on Boxing Day. Furthermore, historical data reveals that the S&P has experienced a rise on 70% of Boxing Days.

Among the notable Boxing Day successes, 2018 stands out when the S&P 500 surged by 5% and the Dow rallied more than 1,000 points. This exceptional performance was driven by a wave of bargain hunting following significant losses in preceding trading sessions. Conversely, the worst Boxing Day losses took place in 1930 during the Great Crash.

Unraveling the Origins of Boxing Day

Boxing Day's origins remain somewhat mysterious. However, historians widely associate the day with the act of giving gifts to those outside the immediate family, such as servants or donations made to churches through their boxing day donation boxes.

Moreover, in many Western European countries, Boxing Day is known as St. Stephen's Day, commemorating the first martyr of Christianity. Interestingly, this connection may ring a bell for those familiar with the lyrics of "Good King Wenceslas," where the eponymous monarch looks out "on the feast of Stephen." Appropriately, Boxing Day often serves as a day for savoring the leftovers from the grand Christmas feast.

In conclusion, while investors across the globe eagerly anticipate post-Christmas stock purchases, stock market closures on Boxing Day may prove to be a temporary obstacle for international investors. However, Americans can take advantage of this opportunity to engage in trading activities.