U.S. Market
Stocks Mixed, Year Ends Strong
U.S. stocks showed mixed performance in a holiday-shortened week, with profit-taking early on. Despite late-year weakness, the S&P 500 gained over 20% for a second straight year, marking its best two-year performance in 25 years.
Key Economic Data
Chicago PMI dropped to 36.9 in December, marking 13 months of contraction. The Atlanta Fed cut its Q4 GDP growth forecast from 3.1% to 2.6%. On the bright side, jobless claims hit an eight-month low at 211,000.
Treasury Yields Fall
Yields declined across most maturities, boosting municipal and corporate bonds.
European Market
European Stocks Mixed
The STOXX 600 gained 0.20%, while major country indexes were mixed. A weaker pound boosted the UK’s FTSE 100, up 0.91%.
Spain Inflation Surges
Inflation rose to 2.8% in December, supporting hawkish ECB calls for cautious rate cuts.
UK Housing Strengthens
December house prices rose 0.7% month-over-month, the fastest annual growth since 2022.
Japan Market
Strong Year Despite End-of-Year Dip
The Nikkei 225 ended 2024 up 20%, its highest year-end close, driven by a weaker yen and corporate reforms. December’s PMI improved slightly, showing slower contraction.
China Market
Markets Weaken Amid Slower Growth
The manufacturing PMI dipped to 50.1, missing forecasts. Real estate showed signs of stabilization with December sales flat year-over-year but up 24.2% month-over-month.
Other Key Markets
Turkey
The central bank cut rates to 47.5%, and minimum wages were raised 30% for 2025.
Mexico
The central bank lowered its rate to 10.00%, extending inflation targets to 2026.
*Source of data: Yahoo! Finance and Bloomberg. Past performance is not indicative of future results.
