Market Highlights 💡 - 27 January 2025

Investors are digesting Trump's comments while focusing on the upcoming earnings reports of major tech companies.

🇺🇸 S&P 500 Index: -0.28% 📉

🇺🇸 Nasdaq Index: -0.50% 📉

🇪🇺 Stoxx 600 Index: -0.05% 📉

🇯🇵 Nikkei 225 Index: -0.07% 📉

🇭🇰 Hang Seng Index: +1.86% 📈

🇨🇳 CSI 300 Index: +0.83% 📈

🇸🇬 Straits Times Index: -0.06% 📉

• U.S. markets declined, with the S&P 500 and Nasdaq falling by -0.3% and -0.5%, respectively, as investors pulled back while digesting mixed economic data and earnings reports, preparing for a week filled with economic data and Federal Reserve meetings.

• Chinese stocks rose, with Hong Kong's Hang Seng Index and China's CSI 300 Index increasing by 1.9% and 0.9%, respectively, as investors responded positively to Trump's recent comments on tariffs on Chinese goods.

• The Nikkei 225 Index slightly declined by -0.07%, as eased concerns about the U.S.-China trade war and expectations of a U.S. rate cut offset the Bank of Japan's policy stance, boosting demand for Japanese stocks.

💡 Upcoming Events: 💡

• Monday: China's National Bureau of Statistics will release the Manufacturing PMI, offering insights into the country's industrial performance and economic recovery.

• Tuesday: The U.S. will announce the Consumer Confidence Index and Durable Goods Orders, revealing consumer sentiment and demand trends.

• Wednesday: Amid continued global uncertainty, Japan's Consumer Confidence Index will highlight domestic economic sentiment.

• Thursday: The Federal Reserve will announce its interest rate decision and release quarterly GDP growth data. In Europe, the European Central Bank will announce its main refinancing rate, followed by a monetary policy statement and press conference, updating the eurozone's monetary outlook.

• Friday: The U.S. will release the Core PCE Price Index, a key inflation measure closely watched by the Federal Reserve.

💡 Things Need to Know Today: 💡

1. The U.S. economy maintained steady momentum at the end of 2024, with strong consumer spending expected to drive quarterly growth of 3.0%, further widening the gap with global peers.

2. The University of Michigan's Consumer Confidence Index fell in January for the first time in six months to 71.1, due to concerns about unemployment and the potential inflationary effects of tariffs.

Consumer confidence index

3. The Bank of Japan raised interest rates to the highest level since the 2008 global financial crisis and revised up its inflation forecast, signaling confidence that wage growth will stabilize inflation near its 2% target.

Bank of Japan

4. China introduced new measures to promote the development of index investment products, the latest attempt to support its struggling stock market amid a challenging external economic environment.

5. According to Yonhap News, South Korean prosecutors have charged President Yoon Suk Yeol with attempting to impose martial law last month but failed. The impeached leader remains detained as authorities work to build their case against him.

Yoon Suk Yeol

✅ Key Takeaway: 

Investors are entering another crucial earnings season for major tech companies, whose stock prices are near historical highs and valuations are on the high side.

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