Week in Review: Stocks, Signals, and a Dash of Global Buzz
US Equities – A Sluggish Surge
- Nasdaq & Russell 1000 Growth kicked off the week on a high note, with tech and big‑cap growth stocks dancing up. But after the Christmas market pause on Wednesday, the momentum hit a slight snag, and by Friday most indices had to give back a chunk of their gains.
- The Dow still managed a solid climb of 151.95 points (14.07% year‑to‑date), while the S&P 500 and Nasdaq were up 39.99 and 149.43 points respectively – proof that U.S. equities are still having a good year.
- Treasury Yields crept up; the 10‑year note hit 4.641%. Bond trading was quiet, so they were moving like a sleepy herd.
Consumer Confidence Takes a Rainy Turn
- The Conference Board’s confidence index fell to 104.7 from 112.8 in November, signalling folks are feeling a bit more wary about earning, business, and labor outlooks.
- Durable goods orders dipped 1.1% in November – fewer planes and a dip in defense spending. New home sales ticked up a bit, but still shy of the 664,000‑unit expectation.
Labour: A Mixed Bag
- Initial jobless claims slumped to a six‑week low of 219,000.
- But continuing claims crept up to 1.91 million, hinting that people are hunting for jobs a bit longer than before.
Europe: Optimism Still Boots its Way Ahead
- The STOXX 600 was up 0.99%. France’s CAC 40 gathered 1.11% and Germany’s DAX climbed 0.50% – even as economic data remains mixed.
- UK’s economy slipped to zero growth in Q3, dropping from an earlier 0.1%. Coupled with a revised Q2, worries about a slowdown are ticking up while the government gears up to hike taxes.
- France shuffled the cabinet again, handing the reins to Prime Minister Francois Bayrou. Meanwhile, U.S. President‑elect Donald Trump eyed EU tariffs if energy imports don’t surge.
- ECB’s Christine Lagarde said the 2% inflation target is near, yet the services sector still feels a bit wild – a warning that eurozone monetary policy might be a roller‑coaster.
Asia: Japan’s Yen and China’s Stimulus Outlook
- Japan’s Nikkei leapt 4.08%, with TOPIX up 3.69%. The yen’s slide to JPY 157 against the dollar is good news for export‑heavy firms. The 10‑year government bond yield hit a five‑week high of 1.1%, and Bank of Japan’s Governor Ueda hinted at future rate hikes (timing still unclear).
- Tokyo’s CPI rose 3% YoY in December, blowing past predictions. Manufacturing profits trended down 7.3% YoY in November, but the contraction was gentler thanks to stimulus, though earnings still feel under pressure.
- China’s Shanghai Composite ticked up 0.95% and the CSI 300 rose 1.36%. Investors are buzzing about a potential record RMB 3 trillion in special Treasury bonds in 2025 to bolster consumption and innovation. The People’s Bank pumped liquidity into the system, the biggest banking drain since 2014, but manufacturing profits took another dip.
Bottom Line – A Week of Wobbles and Wins
- US stocks gave fans a modest smile with a few weekly gains, tempered by a slight pullback.
- Confidence is a bit shaky, but things like dividend cuts and yield climbs show markets are still listening.
- Europe’s optimism contrasts with the UK’s cautious outlook, and Japan’s yen‑friendly environment is yielding a bit of bullish momentum.
- China’s stimulus plans sound promising, but voters watching manufacturing profits still might wish for a stronger rally.
Keep an eye on the next week – the markets are still tossing up a mix of optimism, caution, and a splash of international intrigue.
