Weekly Market Recap: 13–19 January 2025
- Jan 20
- 2 min read
Global Equities Surge Amid Positive Economic Indicators
The week of 13 – 19 January 2025 witnessed a robust performance across global equity markets, driven by encouraging economic data and strong corporate earnings.
United States
In the U.S., the S&P 500 posted its most significant gains since November 2024, buoyed by lower-than-expected inflation figures. The Consumer Price Index (CPI) data released midweek indicated a deceleration in inflation, leading to a decline in Treasury yields and bolstering investor confidence. Additionally, the commencement of the fourth-quarter earnings season saw major banks, including Goldman Sachs and JPMorgan Chase, reporting results that surpassed expectations, further propelling the market upward.
Europe
European markets mirrored this optimism, with the Stoxx Europe 600 index advancing. Investors are keenly awaiting the upcoming IHS Markit composite Purchasing Managers’ Index (PMI) for January, anticipated to show a reading of 49.7. While this figure suggests a slight contraction, it represents an improvement from previous months, indicating potential stabilisation in European business activity.
Asia
Asian markets experienced gains, supported by China’s consideration of easing measures to stimulate economic growth. The potential policy adjustments are aimed at bolstering domestic demand and countering external uncertainties, contributing to the positive sentiment in the region’s equity markets.
Commodities
In the commodities sector, oil prices continued their upward trajectory, with Brent crude advancing to $81.01 per barrel. This increase is attributed to new sanctions impacting supply dynamics. Conversely, gold prices saw a modest rise, reflecting ongoing investor interest in safe-haven assets amid global economic developments.
Outlook
Looking ahead, market participants will closely monitor upcoming economic indicators, including retail sales and jobless claims data, to gauge the sustainability of the current growth trajectory. Additionally, corporate earnings reports will continue to influence market dynamics as investors assess the health of various sectors.