The first few days of January will be quiet on the markets but economic growth is expected to accelerate in the US, boosting employment and consumer buying power. But with the markets repeatedly notching all-time highs, both in the US and in New Zealand, there is a notion of caution being exercised by some.
Chief market strategist for National Securities in New York, Donald Selkin, said there was a pervasive feeling the economy was getting better, and the Federal Reserve would play its part by keeping interest rates low.
''While new money will still be flowing into stocks next year, probably we'll see less money come in. There's little chance of another 30% gain or so next year,'' he said.
The Standard & Poor's 500 has risen 29% so far in 2013, its best annual performance since 1997. The Dow Jones Industrial Average is up 26% while the Nasdaq is up nearly 38%.
The gains have been widespread and all 10 S&P 500 sectors were higher on the year. Telecommunications, the weakest group, rose 6.5% while consumer discretionary led the year with a gain of 40%.
The latest Reuters poll showed analysts expected the S&P to rise to 1925 points by the end of next year, representing a rise of 4.5% from current levels.
Britain's top share index rose on Friday, taking its cue from the highs hit on Wall Street, to notch up its sixth straight day of gains - its longest winning streak for two months.
Reuters reported the FTSE 100 was up nearly 1% on Friday's close, after both the Dow Jones and S&P reached their new highs on Thursday, when the British market was shut for the Boxing Day holiday.
The rise made it the British benchmark's longest winning streak since October, fuelled by optimism the US economy was strong enough to withstand the gradual withdrawal of monetary stimulus.
The Fed's stimulus programme, under which it bought $US85 billion ($NZ104 billion) of bonds and mortgages a month, will be less of a factor after the central bank announced a slowing of the programme earlier this month.
The programme will be reduced by $US10 billion a month and Fed chairman Ben Bernanke, who will retire on January 31, suggested the US central bank could continue to slowly reduce the stimulus throughout 2014.
In Britain, commodity-related stocks were among the biggest risers, as well as the most heavily traded stocks.
TJM Partners head of trading Manoj Ladwa said the performance of the US market was helping the UK market and he was maintaining a target on the FTSE of 7000 for the end of the year. It closed at 6750 on Friday.
The news is not so encouraging in other parts of the world. The Japanese yen fell to five-year lows against the US dollar and the euro late last week.
Although the euro zone's economic recovery is seen as sluggish, the currency has been underpinned by European banks' repatriation of assets, as well as buying by exporters, as the region's current account surplus has increased sharply.
The European Central Bank will take a snapshot of the capital positions of the region's banks at the end of this week, which it will use in conducting an asset quality review in 2014 to work out which will need fresh funds.
This had led to some demand for euros from banks to help shore up their balance sheets, traders said.
