The U.S. dollar gained on Tuesday after economic data showing a generally stable jobs market and a still robust services sector suggested that the Federal Reserve will likely slow the pace of its current rate-cutting cycle. The greenback rose to a near six-month peak after the U.S. data. It was up 0.4% at 158.195 yen . Earlier in the global session, the dollar hit its highest since July of 158.425 yen. The euro, on the other hand, slipped 0.1% to $1.0378 , extending its fall after the data. Data showed ...

What Happened in the Markets? The S&P 500 increased 1.3% Friday to end the day at 5,942.47, having gained 1.0% thus far in 2025. All Eleven S&P 500 sectors were higher on the day, as Consumer Discretionary (2.4%) and Information Technology (1.6%) were the strongest-performing S&P 500 sectors, while Consumer Staples (0.1%) and Materials (0.0%) underperformed. By the 4:00 p.m. equity market close, the US 10-year Treasury yield increased to 4.60%; WTI Crude increased to $74.02 per barrel; and gold decreased to $2,637.21 per ounce. Why Did This Move Happen? ...

There are many uncertainties for investors to grapple with as 2025 kicks ofF, and one that UBS equity strategists have picked up are higher-than-average equity valuations. “The S&P 500 forward price-to-earnings ratio now stands at 21.5x, a step above both 10- and 20-year averages of around 18x and 16x, respectively,” writes CIO Mark Haefele, global wealth management CIO in a daily note. But his team doesn’t think this is necessarily an impediment to further gains in the year ahead. Why? Firstly, high valuations are reflective of a positive macro backdrop. ...

The bull case for China’s stocks is on its face compelling: firms in the People’s Republic are undervalued and often enjoy higher cash flow and profitability relative to global peers. Some of the largest and most popular among global investors, such as tech group Tencent 700 and battery maker Contemporary Amperex Technology (CATL) 300750, just closed out 2024 with double-digit gains fuelled by hopes Beijing will finally take more substantial measures to boost sluggish growth. But it is equally clear that this bull case is precarious at best. Case in ...

Asia’s shares followed Wall Street’s positive lead on Tuesday as some investors hoped U.S. President-elect Donald Trump would adopt less aggressive tariffs than previously thought when he takes office. MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was up 0.03%, while Japan’s Nikkei jumped 2%, boosted by a rally in technology stocks. Stocks in Europe, however, looked set for a negative start after Monday’s gain. EUROSTOXX 50 futures fell 0.5%, while FTSE futures retreated 0.47%. In the U.S., S&P 500 futures slipped 0.07%. Nasdaq futures lost 0.16% after the ...

The stock market faces its first major test of the year in the coming week, with investors counting on the U.S. jobs report to show a stable but not overheated economy that underpins expectations for equity gains in 2025. Stocks wobbled at the end of December and the start of January, cooling off after a torrid run. The benchmark S&P 500 closed 2024 with a 23% rise and posted its biggest two-year gain since 1997-1998. Prospects for a third straight standout year hinge in part on the strength of the ...

Investors are expecting more gains for the U.S. stock market in 2025 after two straight standout years, fueled by a solid economy supporting corporate profits, moderating interest rates and pro-growth policies from incoming President Donald Trump. The benchmark was up 23.31% in 2024, even with a recent speed bump, marking its second-straight year of gains exceeding 20%, lifted by megacap tech stocks and excitement over the business potential of artificial intelligence. The index soared 53.19% over the last two years, the biggest two-year percentage jump since 1998. Investors are more ...

USD: Market positioning dominates Monday saw a pick-up in FX volatility on the back of a Washington Post report – quickly rejected by Trump – that incoming US tariff policy could be more selective than first feared. The dollar’s failure to recover all its intra-day losses on Monday likely indicates two factors: first, the market had been heavily favouring the dollar following a nearly continuous three-month rally; second, a view that there is no smoke without fire and that the contents of that Washington Post report sounded sensible. It is ...

While stock markets shrugged off the dim start to 2025, the higher-for-longer U.S. rates theme has left the dollar’s dominance intact, leaving the euro and sterling near multi-month lows. Beyond the worries of the U.S. central bank’s measured rate cut path for 2025, investors are also grappling with how President-elect Donald Trump’s policies will play out regarding inflation, growth and tariffs. European stock markets are set for a mellow open after Asian equities ended the week on a high, buoyed by South Korean shares KOSPI. Japan remains closed for a ...

The first full trading week of 2025 brings key U.S. jobs data as well as Chinese and euro zone inflation numbers. These come against a backdrop of unease over the U.S. interest rate outlook and potential for policy surprises under U.S. President-elect Donald Trump, with the euro and already kicking off the new year on a weak footing. Here’s what’s in store for world markets in the coming week from Rae Wee in Singapore and Alun John, Amanda Cooper, Dhara Ranasinghe and Samuel Indyk in London. 1/ JOB DONE Markets ...

Global stocks rallied on Friday but remained on track for a weekly decline, while the dollar stalled after its recent rally but found some support from a stronger-than-expected U.S. manufacturing survey. U.S. stocks secured strong gains, with both the S&P 500 and Nasdaq up more than 1% to snap a five-session streak of declines, their longest since mid-April. All 11 major S&P sectors rose, led by a 2.42% jump in consumer discretionary stocks. The U.S. currency rallied late last year as investors bet President-elect Donald Trump’s policies would drive growth ...

Some of the world’s largest hedge funds finished 2024 with comfortable double-digit returns, benefiting from chaotic markets, central bank policy changes and a tight U.S. presidential election race. Hedge funds, which trade several different asset classes from stocks to commodities, navigated volatile markets with some degree of success. Macro (BCBA:) hedge fund Discovery (NASDAQ:) Capital ended 2024 up 52%, after gains across equities, currencies, rates and credit, a source familiar with the performance said, with trades in both emerging and developed countries. In terms of sectors, the fund led by ...

Many kids are lucky enough to find stockings filled with treats on Dec. 25 each year but equity investors have to wait a bit longer to confirm whether or not Santa pays them a visit. More often than not, the so-called Santa Claus rally brings an advance for the S&P 500 over the last five trading days of the year and the first two days of the new year, according to the Stock Trader’s Almanac authors, who identified the trend and coined the phrase in the early 1970’s. And the ...

Demand for global equity funds shrank in the week through Jan. 1, as higher U.S. Treasury yields led to caution and investors took profits during the year-end trading lull. Data from LSEG Lipper showed that investors added a net $4.93 billion worth of global equity funds, an 86% drop in inflows compared with about $35.1 billion worth of net purchases in the prior week. Weekly flows into global equity, bond and money market funds in $ million Thomson ReutersFund flows: Global equities, bonds and money markets The MSCI World index, ...

THINK Ahead in developed markets United States (James Knightley) • The first jobs report of the year comes next Friday (January 10). The early consensus is for December non-farm payrolls to have risen 153k with a range of 125k to 200k, but expectations will be firmed up through the week with the release of job openings numbers, ADP private payrolls and the ISM employment components. The unemployment rate is expected to hold at 4.2%, while wage growth is expected to hold at 4% year-on-year. This would all be consistent with ...