Market Highlights π‘ - 13 January 2025
Wall Street Pulls Back Due to Strong Employment Data
πΊπΈ S&P 500 Index: -1.53% π
πΊπΈ Nasdaq Index: -1.63% π
πͺπΊ Stoxx 600 Index: -0.83% π
π―π΅ Nikkei 225 Index: -1.05% π
ππ° Hang Seng Index: -0.92% π
π¨π³ CSI 300 Index: -1.22% π
πΈπ¬ STI: -1.58% π
U.S. Stock Market Pulls Back on Friday, with the S&P 500 and Nasdaq Composite falling -1.5% and -1.6%, respectively, after a stronger-than-expected jobs report reduced hopes for further rate cuts by the Fed in 2025.
The U.S. economy added 256,000 jobs in December, far exceeding last month's 212,000 and the market's expectation of 164,000, with notable job gains in healthcare, government, and social assistance.
The U.S. unemployment rate dropped to 4.1% in December (forecasted at 4.2%), while the labor force participation rate remained unchanged at 62.5%.
Asia-Pacific Markets Closed Lower, with the Shanghai CSI 300 Index down -1.2% after the central bank announced it would suspend purchases of government bonds due to supply shortages. The Hang Seng Index fell -0.9%, marking its largest weekly drop in nearly two months.
π‘ Upcoming Events π‘
Tuesday: U.S. PPI and Core PPI data will be released.
Wednesday: Investors will await U.S. Core Inflation and Inflation Rate data, as well as Eurozone Industrial Production data.
Thursday: U.S. Retail Sales and Unemployment Claims data will be released, and Japan will release its PPI Year-on-Year data.
Friday: China will release a range of data including GDP growth, Industrial Production Year-on-Year, Retail Sales Year-on-Year, and Unemployment Rate.
π‘ Things to Know Today π‘
1. The People's Bank of China announced on Friday that it would suspend sovereign debt purchases for the month due to supply shortages and would resume purchases depending on market conditions.
People's Bank of China
2. TSMC (Taiwan Semiconductor Manufacturing Company) $Taiwan Semiconductor Manufacturing(TSM)$ reported strong quarterly revenue for December, surpassing analyst expectations, driven by continued demand for artificial intelligence, and pushing the company's 2024 total revenue to TWD 2.9 trillion, the highest annual sales since its listing in 1994.
TSMC
3. U.S. insurance stocks fell on Friday as analysts predicted that losses from wildfires threatening Los Angeles could reach up to $20 billion, possibly becoming the costliest disaster in California's history.
Los Angeles wild fire
4. Nvidia $NVIDIA Corp(NVDA)$ criticized the upcoming U.S. chip export restrictions targeting artificial intelligence technology, calling it a last-minute move to suppress the incoming Trump administration.
Chip war
5. The Malaysian government has imposed preliminary anti-dumping duties of 2.52% to 36.8% on tinplate imports from China, India, Japan, and South Korea, effective Sunday (January 11), citing that the export prices were below normal levels and harming local industries.
Tinplate
β Key Takeaways:
While the strong U.S. non-farm payroll data is positive for the economy, it was disappointing for those hoping for rate cuts, as the market now expects the first rate cut of 2025 to be delayed until the September FOMC meeting.
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Here are some news articles related to the rate cut and non-farm payroll data:
RPT-BUZZ-Week Ahead-US inflation, China data, Fed comments to the fore: This article discusses upcoming events such as US inflation data, China data, and Fed comments. It highlights the impact of the strong non-farm payroll data on rate cut expectations.
Global Markets Slide Amid Rate Uncertainty and Economic Worries: This article provides an overview of global market movements due to rate uncertainty and economic concerns. It mentions the impact of the non-farm payroll data on market sentiment.
Asian Currencies Consolidate; Fading Fed Rate-Cut Hopes May Weigh: This article discusses how Asian currencies are consolidating against the dollar after the robust US non-farm payroll report. It mentions the reduced probability of Fed rate cuts in the near term.
BUZZ-Week Ahead-US inflation, China data, Fed comments to the fore: This article highlights the busy week ahead with US data and Federal Reserve speakers. It mentions the impact of the employment figures on rate cut expectations.
Asian Morning Briefing: Strong Jobs Data Sinks U.S. Stocks: This article provides a summary of market movements, with US stocks sliding and Treasury yields rallying due to the strong jobs data. It mentions the impact on interest rate cut expectations.
Please note that these articles provide various perspectives on the topic. Remember to conduct further research and analysis to make informed investment decisions.