I. Performance and Valuation of Global Equity Indices Data Source: Bloomberg, Complied by Tiger Brokers II. Key Market Themes i. U.S. Inflation Cools Surprisingly, Market Concerns Ease Slightly, Opportunities Remain Last week, U.S. December inflation data was released, showing a slight cooling compared to previously strong economic indicators. Specifically, headline CPI rose 2.9% year-over-year, higher than the prior figure but in line with expectations. Notably, the increase was primarily driven by energy prices, which are subject to short-term volatility and lack long-term persistence. Meanwhile, core CPI increased 3.2% year-over-year, exceeding the prior figure but slightly below expectations. Core goods prices continued to cool, while core services remained resilient, particularly
I. Performance and Valuation of Global Equity Indices Data Source: Bloomberg, Complied by Tiger Brokers II. Key Market Themes i. Biden Administration Proposes Stricter Chip Export Ban: Could the Tech Industry Face Deep Impacts? Last week, Bloomberg reported, citing insiders, that the Biden administration plans to introduce further AI chip export restrictions before leaving office on January 20. According to rumors, the new regulations would categorize countries and regions into three tiers: Tier 1: Includes major U.S. allies such as Germany, Japan, and the Netherlands. These countries would face almost no restrictions on acquiring U.S.-exported AI chips. Tier 2: Covers most countries and regions worldwide. These would face aggregate computational power limits at a country or regional
I. Performance and Valuation of Global Equity Indices Data Source: Bloomberg, Complied by Tiger Brokers II. Key Market Themes i. Did the Santa Claus Rally Disappoint? Was This Year an Extreme Case? Over the past two weeks, the market has entered a lull with little news, marking the annual "Santa Claus Rally" period for U.S. equities. However, this year’s holiday season did not bring significant gains. Instead, the three major U.S. indices experienced varying degrees of pullbacks, prompting pessimism among investors worried about a potential market top. To examine whether the “Santa Claus Rally” truly exists and if this year is an outlier, we analyzed data from the past 40 years. We define the "Santa Claus Rally" as the two weeks surrounding January 1. Historical data shows that during
I. Performance and Valuation of Global Equity Indices Data Source: Bloomberg, Complied by Tiger Brokers II. Key Market Themes i. Fed Cuts Rates as Expected, Powell’s Hawkish Comments Rattle Markets: Is the Stock Market Peaking Again? Last week, the Federal Reserve's FOMC announced a 25 basis point rate cut, lowering the benchmark rate to 4.25%-4.5%. However, the accompanying statements were notably hawkish, with the Cleveland Fed President voting against the decision. Powell also publicly stated, “The current rate policy is no longer as restrictive, and future adjustments will be more cautious.” This aligns with our earlier assessment that the Fed would pause further rate cuts after this one. The dot plot also reflects a more hawkish stance, with three officials suggesting that the Fe
I. Performance and Valuation of Global Equity Indices Data Source: Bloomberg, Complied by Tiger Brokers II. Key Market Themes i. Positive Signals from China's High-Level Meeting: How to Position Greater China Assets? On December 9, the Chinese Communist Party's Politburo convened a meeting to analyze and discuss economic work for 2025. Compared to previous sessions, this meeting adopted a more positive tone, introducing the term “extraordinary counter-cyclical adjustments” for the first time. Moreover, in the overall agenda, “expanding domestic demand comprehensively” was prioritized over “building a modern industrial system,” indicating that addressing “how to expand domestic demand and tackle insufficient effective demand” will be the top priority for China’s economy next year. Nota
I. Performance and Valuation of Global Equity Indices Data Source: Bloomberg, compiled by Tiger Brokers II. Key Market Themes i. U.S. Economic Data Released Intensively: Is the Fed "All in Control"? Last week, the U.S. released its November manufacturing and services PMI. Unlike the past few months, manufacturing PMI saw a significant improvement over previous readings and exceeded market expectations, though it remained below the neutral 50 threshold. In contrast, services PMI sharply declined, falling below expectations but stayed above the 50 line. In other words, manufacturing is warming up, though not sufficiently, while services are weakening, but not alarmingly so. Additionally, November employment data was released last Friday. Non-farm payroll additions, based on corporate su
I. Performance and Valuation of Global Equity Indices Data Source: Bloomberg, compiled by Tiger Brokers II. Key Market Themes i. October PCE Inflation in the U.S. Meets Expectations, Economy Strengthens – Can December Deliver a Rate Cut? Recently, the October PCE inflation data for the U.S. was released. Nominal PCE and core PCE rose by 0.20% and 0.27% month-over-month, respectively, both in line with market expectations. Notably, inflation in the services sector continued to rise with an accelerating pace, while durable goods experienced a continued month-over-month decline. Overall, while inflation has ticked up, it remains within expectations. At the same time, personal income and personal spending of U.S. residents increased by 0.6% and 0.4% month-over-month, respectively, signifi
I. Performance and Valuation of Global Equity Indices Data Source: Bloomberg, compiled by Tiger Brokers II. Key Market Themes i. Trump’s Cabinet Formation is Complete: What Does the Treasury Secretary Choice Mean for the Future Macroeconomic Landscape? Recently, the highly anticipated position of U.S. Treasury Secretary in the new administration was finalized. Trump ultimately did not choose Lutnick, strongly recommended by Musk, but instead nominated Key Square founder and Soros Fund CIO, Bessent. Comparatively, Bessent is a staunch supporter of liberal economics, aligning with Trump on policies such as broad tariffs, tax reform, and financial deregulation, though he is less radical than Lutnick. Specifically, he has proposed the “3-3-3 Policy” to Trump, which entails reducing the f
I. Performance and Valuation of Global Equity Indices Data Source: Bloomberg, compiled by Tiger Brokers II. Key Market Themes i. U.S. inflation remains elevated, the economy is strong, but the stock market is plummeting—what exactly is the market worried about? Last week, the U.S. October inflation data was released. The nominal CPI and core CPI rose by 0.2% and 0.3% month-over-month, respectively, staying consistent with previous increases and meeting market expectations. A closer look reveals that only used car prices saw a notable increase, but given their small weight in the index, the overall impact was minimal. The following day, PPI data also came out as expected, with no surprises. In response, Federal Reserve spokesperson Nick indicated that while inflation remains stubborn,
I. Performance and Valuation of Global Equity Indices Data Source: Bloomberg, compiled by Tiger Brokers II. Key Market Themes i. Trump’s Decisive Victory and Republican Sweep: Implications for U.S. Equities, Bonds, and the Federal Reserve This week, the final outcome of the U.S. election revealed a sweeping win for Trump, who captured all seven battleground states and decisively secured the presidency. Additionally, the Republican Party achieved a majority in both the Senate and the House of Representatives, establishing unified governance across the executive and legislative branches. Over the coming four years, Trump’s policy implementation is likely to become smoother and have broader impacts. Market reactions have been particularly notable, with beneficiaries like DJT and Tesla