To The Moon

As Trump tones down his tough rhetoric on tariffs, global markets rebounded.

🇺🇸 S&P 500 Index: 0.88% 📈

🇺🇸 Nasdaq: 0.64% 📈

🇪🇺 Stoxx 600 Index: 0.40% 📈

🇯🇵 Nikkei 225 Index: 0.32% 📈

🇭🇰 Hang Seng Index: 0.91% 📈

🇨🇳 CSI 300 Index: 0.08% 📈

🇸🇬 Straits Times Index: -0.33% 📉

Wall Street rose in sync, with the S&P 500 and Nasdaq Composite gaining 0.9% and 0.6% respectively, as investors assessed President Donald Trump's executive orders and awaited his first actions on trade policy.

The EU ZEW Economic Sentiment Index increased by 1 point to 18 in January 2025, higher than the expected 16.9, while Germany's GDP growth slowed, inflation pressures rose, and political instability remained.

Asia-Pacific markets closed higher, with the Hang Seng Index and CSI 300 Index rising by 0.9% and 0.1%, respectively, due to positive Chinese economic data last week and expectations of improved U.S.-China relations.

💡 Upcoming Events 💡

On Thursday, investors will await U.S. jobless claims, the Eurozone consumer confidence index (preliminary), and Japan's annual export data.

At the end of this week, on Friday, we will see the preliminary S&P Global Manufacturing and Services PMI for the U.S., the final University of Michigan Consumer Sentiment Index, the preliminary HCOB Manufacturing and Services PMI for the Eurozone, Japan's annual inflation rate, the preliminary Manufacturing and Services PMI from Japan's private banks, and the Bank of Japan's interest rate decision.

💡 Things You Need to Know Today 💡

1. President Donald Trump signed an executive order delaying the divestment or ban of TikTok by 75 days, while threatening that if a U.S. buyer's proposed joint venture for TikTok's 50% stake is not approved, high tariffs will be imposed on China.

TikTok potential ban

2. Netflix $Netflix(NFLX)$  shares surged 10% after posting a record Q4 earnings report. The company's net subscribers grew 44% year-on-year, thanks to a strong content lineup, including Squid Game and live sports events.

Netflix

3. President Trump announced a joint venture with SoftBank $Softbank Corp.(SOBKY)$ , OpenAI, and Oracle $Oracle(ORCL)$ , investing $500 billion in AI infrastructure. This "Stargate" initiative aims to develop data centers, increase energy capacity, and make the U.S. a global leader in artificial intelligence.

Stargate project

4. China's Vice Premier Ding Xuexiang spoke at the World Economic Forum in Davos, promising to expand imports and promote trade balance, emphasizing that China is willing to import competitively priced, high-quality products and services.

Ding Xuexiang

5. The U.S. TikTok ban controversy has led to over 2 million Americans downloading Xiaohongshu (Little Red Book), creating optimism for Chinese consumer goods companies like Hangzhou Onechance Tech. Meanwhile, as interest in flights and hotels to China rises, Chinese tourism stocks have also gained.

Little Red Book

✅ Key Takeaways: 

Investors are relieved that President Trump chose not to impose tariffs on major trade partners on his first day in office, but they are closely watching further government actions to assess their impact on the market.

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