To The Moon

Wall Street sees its first-week gains of 2025; Chinese stock market rises on improved market sentiment.

🇺🇸 S&P 500 Index: 1.00% 📈

🇺🇸 Nasdaq: 1.51% 📈

🇪🇺 Stoxx 600 Index: 0.69% 📈

🇯🇵 Nikkei 225 Index: -0.31% 📉

🇭🇰 Hang Seng Index: 0.31% 📈

🇨🇳 CSI 300 Index: 0.36% 📈

🇸🇬 Straits Times Index: 0.25% 📈

U.S. stock markets rose on Friday, with the S&P 500 and Nasdaq rising by 1.0% and 1.5%, respectively, as investors expected a wave of policy changes from the incoming Trump administration.

Asian stock markets showed optimism, with the Hang Seng and CSI 300 indices rising by 0.3% and 0.4%, respectively, as Q4 2024 GDP data beat expectations, leading markets to anticipate improvement in consumption driven by government stimulus measures.

In Q4 2024, China's economy grew 5.4% YoY (expected 5%), up from 4.6% in Q3, driven by a series of stimulus measures. Full-year growth was 5%, in line with the government's target.

In December, China's industrial production grew 6.2% YoY (November grew 5.4%), exceeding expectations, primarily due to accelerated growth in manufacturing.

In December, China's retail sales grew 3.7% YoY (expected 3.5%), up from 3.0% in November, as multiple stimulus measures were implemented since September of the previous year.

💡 Upcoming Events: 💡

On Monday, Japan's industrial production YoY final value, China's 1-year and 5-year loan prime rates will be released.

On Tuesday, the EU's ZEW Economic Sentiment Index will be released.

On Thursday, investors will await U.S. unemployment claims, Eurozone consumer confidence index, and Japan's export YoY data.

By the end of the week on Friday, we will see the release of the U.S. S&P Global Manufacturing and Services PMI flash, University of Michigan Consumer Sentiment Index final, Eurozone and Korea HCOB Manufacturing and Services PMI flash, Japan's inflation YoY, Jibun Bank Manufacturing and Services PMI flash, and Bank of Japan interest rate decision.

💡 Things to Know Today: 💡

1. TikTok was shut down in the U.S. on Saturday and removed from app stores before the new law banning the platform was enacted, affecting 170 million users. However, President-elect Donald Trump hinted that a 90-day grace period may be granted after the inauguration.

TikTok shutdown

2. The ceasefire agreement between Israel and Hamas in Gaza went into effect on Sunday, ending 15 months of war. The agreement involves the phased release of hostages and Palestinian detainees.

Israel Hamas ceasefire

3. "I just had a very beneficial phone conversation with President Xi Jinping of China. It was a very good conversation for both China and the U.S. I expect we will work together on many issues and begin immediately. We discussed trade balance, fentanyl, TikTok, and many other topics. President Xi and I will do everything we can to make the world safer and more peaceful!" — President-elect Donald Trump.

4. In December, China's new home prices fell 0.08% MoM, driven by stimulus measures in Beijing such as mortgage rate cuts and easing housing restrictions, particularly in first-tier cities where prices rose 0.2%.

5. Early in 2025, China's electric vehicle sales plunged 50% MoM, due to the end of government subsidies, putting pressure on car manufacturers to maintain growth amid fierce competition, with most domestic manufacturers still operating at a loss. $XPENG-W(09868)$  $NIO-SW(09866)$  $LI AUTO-W(02015)$  $XIAOMI-W(01810)$  $BYD COMPANY(01211)$  

China EVs

✅ Key Takeaways: 

All eyes are now on Trump's inauguration and policy statements, with market volatility depending on the speed and scope of his executive orders.

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