Euro Area Inflation Accelerated and UK Home Price Growth Slowed In December

European markets lacked direction as investors reviewed the latest inflation updates and debated rate paths ahead of the policy meeting later this month. 

Benchmark indexes in Paris, Frankfurt, Milan, and London wavered around the flatline after the Euro Area inflation accelerated in December. 

Euro Area Inflation Accelerated for the Third Consecutive Month 

The consumer price index in the eurozone increased for the third month in a row in December to 2.4% from 2.2% in November, Eurostat reported Tuesday. 

The rebound in inflation was widely anticipated because of the base effects driven by the large decline in energy prices that are no longer available in energy prices. 

Inflation for food, alcohol, and tobacco was stable, but for energy and services, it accelerated and eased for non-energy goods. 

Inflation in Germany and France Diverged In December 

The annual inflation in France was unchanged at 1.3% in December from the previous month, France's statistical agency INSEE reported Tuesday. 

On Monday, Germany's statistical agency Destatis confirmed that the annual consumer price inflation accelerated to 2.6% in December, largely driven by the increase in energy prices. 

Italy's Jobless Rate Dropped to Record Low In December

The jobless rate in Italy decreased to 5.7% in December from 5.8% in the previous month, the National Institute of Statistics, or ISTAT, reported Tuesday. 

The jobless rate dropped to the lowest level since record keeping began in 1983. 

The number of people seeking jobs decreased by 24,000 to 1.46 million, the lowest since April 2007; the employment participation rate was unchanged at 66.3%, and the number of employed eased by 13,000 to 24.06 million. 

UK Home Price Growth Slowed In December 

UK home prices rose at the slowest pace in five months in December, and the average home price eased, Halifax and Bank of Scotland said in a report. 

The Halifax House Price Index increased 3.3% from a year ago in December, following a downwardly revised 4.7% increase in November. 

The average house price eased 0.2% from the previous month to £297,166, after rising for two consecutive months. 

"While the housing market has been supported in recent months by falling mortgage rates, income growth, and the announcement on upcoming stamp duty policy changes, mortgage affordability will remain a challenge for many, especially as the Bank Rate is likely to come down more slowly than previously predicted. 

However, providing employment conditions don’t deteriorate markedly from a more recent softening, buyer demand should hold up relatively well, and, taking all this into account, we’re continuing to anticipate modest house price growth this year,” said Amanda Bryden, Head of Mortgages, Halifax. 

Europe Indexes and Yields

The DAX index increased by 0.2% to 20,255.52; the CAC-40 index rose by 0.5% to 7,480.62; and the FTSE 100 index inched lower by 0.2% to 8,233.65. 

The yield on 10-year German bonds edged higher to 2.46%, French bonds rose to 3.28%, the UK gilts increased to 4.65%, and Italian bonds rose to 3.60%.

The euro edged higher to $1.043; the British pound inched up to $1.255; and the U.S. dollar eased to 90.51 Swiss cents.

Brent crude increased $0.38 to $76.67 a barrel, and the Dutch TTF natural gas fell by €0.79 to €46.40 per MWh. 

Europe Stock Movers

NEXT plc increased 3.8% to 9,916.0 pence after the specialty retailer reported strong sales in Christmas and raised its profit estimate for 2025. 

Sodexo SA dropped 8.4% to €72.55 after the French food services and facilities management company reported a weaker-than-expected increase in revenue in its fiscal first quarter. 

Organic revenue in the quarter ending in November increased 4.6% to Є6.4 billion, after higher sales in Australia, Brazil, and India were offset by the weakness in Continental Europe. 

Organic growth was impacted by a higher base due to the Rugby World Cup last year, partially offset by the Paralympics this year, and excluding these events, underlying organic growth in the first quarter was 4.9%. 

Organic growth was driven by a 3% price increase, and the remainder increase was supported by new business contribution and sales volume growth. 

Tokyo Tech Rally Lifts Nikkei 225 1.9%, Yen Approaches Six-Month Low

Benchmark indexes in Tokyo rebounded, tracking gains in tech stocks in New York in overnight trading. 

The Nikkei 225 Stock Average soared 1.9%, and the broader TOPIX gained 1%, following a rise in semiconductor stocks in overnight trading in New York. 

Semiconductor-related stocks jumped after the Taiwan-based Foxconn reported a sharp jump in revenue in the December quarter, citing strong demand for artificial intelligence servers. 

Foxconn said it will release full fourth-quarter results on March 14. 

The rally in tech stocks broadened to financials, retailers, and automotive companies. 

In the week ahead, investors are looking forward to the release of household income and spending data, which could provide additional clues about consumer spending and saving. 

Japan Stock Movers 

The Nikkei 225 Stock Average increased 1.9% to 40,060.95, and the broader TOPIX index jumped 1% to 2,783.87. 

Advantest Corp. jumped 4.8% to ¥9,747.0, Tokyo Electron Ltd. soared 11.5% to ¥27,110.0, Disco Corp. increased 7.6% to ¥46,470.0, and Lasertec Corp. advanced 5.8% to ¥15,870.0. 

Mitsubishi UFJ Financial Group increased 2.9% to ¥1,913.0, Sumitomo Mitsui Financial Group advanced 2.4% to ¥3,872.0, and Mizuho Financial Group gained 2.2% to ¥3,969.0. 

Fast Retailing Co. Ltd. increased 1.2% to ¥52,180.0, Seven & I Holdings Co. Ltd. inched higher 0.3% to ¥2,449.0, and Isetan Mitsukoshi Holdings Ltd. gained 0.8% to ¥2,705.0. 

Toyota Motor Corp. gained 1.6% to ¥3,061.0, Honda Motor Corp. increased 1.6% to ¥1,607.50, Nissan Motor Corp. added 1.1% to ¥480.50, and Subaru Corp. advanced 1.6% to ¥2,793.50. 

Tokyo Tech Rally Lifts Nikkei 225 1.9%, Yen Approaches 160 Yen

Benchmark indexes in Tokyo rebounded, tracking gains in tech stocks in New York in overnight trading. 

The Nikkei 225 Stock Average soared 1.9%, and the broader TOPIX gained 1%, following a rise in semiconductor stocks in overnight trading in New York. 

Semiconductor-related stocks jumped after the Taiwan-based Foxconn reported a sharp jump in revenue in the December quarter, citing strong demand for artificial intelligence servers. 

Foxconn said it will release full fourth-quarter results on March 14. 

The rally in tech stocks broadened to financials, retailers, and automotive companies. 

In the week ahead, investors are looking forward to the release of household income and spending data, which could provide additional clues about consumer spending and saving. 

Japan Stock Movers 

The Nikkei 225 Stock Average increased 1.9% to 40,060.95, and the broader TOPIX index jumped 1% to 2,783.87. 

Advantest Corp. jumped 4.8% to ¥9,747.0, Tokyo Electron Ltd. soared 11.5% to ¥27,110.0, Disco Corp. increased 7.6% to ¥46,470.0, and Lasertec Corp. advanced 5.8% to ¥15,870.0. 

Mitsubishi UFJ Financial Group increased 2.9% to ¥1,913.0, Sumitomo Mitsui Financial Group advanced 2.4% to ¥3,872.0, and Mizuho Financial Group gained 2.2% to ¥3,969.0. 

Fast Retailing Co. Ltd. increased 1.2% to ¥52,180.0, Seven & I Holdings Co. Ltd. inched higher 0.3% to ¥2,449.0, and Isetan Mitsukoshi Holdings Ltd. gained 0.8% to ¥2,705.0. 

Toyota Motor Corp. gained 1.6% to ¥3,061.0, Honda Motor Corp. increased 1.6% to ¥1,607.50, Nissan Motor Corp. added 1.1% to ¥480.50, and Subaru Corp. advanced 1.6% to ¥2,793.50. 

Hang Seng Index Dropped 2% After U.S. Expanded Chinese Military Entities List

Stocks in China and Hong Kong traded down in active trading amid rising trade tensions with the U.S. and ongoing weakness in the property market.

The Hang Seng index dropped 2%, and the mainland-focused CSI 300 index decreased 0.2% as investors reacted to the latest inclusion of key Chinese tech companies as "military entities" by the U.S. 

CATL, Cosco Shipping, and Tencent Holdings were included in the supplementary list among dozens of Chinese military companies in the Federal Register released by the Department of Defense on January 7. 

The inclusion in the register does not impose a trade ban with the companies but acts as a warning to U.S. investors from investing in these publicly traded companies. 

China Stock Movers 

The Hang Seng index dropped 2.2% to 19,257.84, and the mainland-focused CSI 300 index fell 0.2% to 3,759.95. 

The yield on 10-year Chinese government notes hovered near a record low of 1.6% amid persistent deflation worries and a lack of improvement in the property market outside of three key urban regions—Beijing, Shanghai, and Shenzhen. 

CATL dropped 3.4% to ¥247.99, Cosco Shipping Holdings dropped 4% to HK $12.18, and Tencent Holdings plunged 7.3% to HK $379.40. 

Other technology stocks declined on the worries that the U.S. may expand the banned list of companies in the sector for future investments. 

JD.com dropped 1.5% to HK $133.70, Meituan fell 2.4% to HK $147.10, Alibaba Group Holding decreased 1.3% to HK $81.05. and Baidu declined 0.9% to HK $80.0. 

Property developers continued the decline as activities in top cities outside three key urban regions are expected to remain weak in 2025. 

China Vanke Ltd. decreased 1.6% to HK $4.95, China Resources Land fell 0.7% to HK $22.0, Longfor Group dropped 0.9% to HK $9.84, and Henderson Land Development declined 1.7% to HK $22.85. 

Hang Seng Index Dropped 2% After U.S. Expanded Chinese Military Entities L

Stocks in China and Hong Kong traded down in active trading amid rising trade tensions with the U.S. and ongoing weakness in the property market.

The Hang Seng index dropped 2%, and the mainland-focused CSI 300 index decreased 0.2% as investors reacted to the latest inclusion of key Chinese tech companies as "military entities" by the U.S. 

CATL, Cosco Shipping, and Tencent Holdings were included in the supplementary list among dozens of Chinese military companies in the Federal Register released by the Department of Defense on January 7. 

The inclusion in the register does not impose a trade ban with the companies but acts as a warning to U.S. investors from investing in these publicly traded companies. 

China Stock Movers 

The Hang Seng index dropped 2.2% to 19,257.84, and the mainland-focused CSI 300 index fell 0.2% to 3,759.95. 

The yield on 10-year Chinese government notes hovered near a record low of 1.6% amid persistent deflation worries and a lack of improvement in the property market outside of three key urban regions—Beijing, Shanghai, and Shenzhen. 

CATL dropped 3.4% to ¥247.99, Cosco Shipping Holdings dropped 4% to HK $12.18, and Tencent Holdings plunged 7.3% to HK $379.40. 

Other technology stocks declined on the worries that the U.S. may expand the banned list of companies in the sector for future investments. 

JD.com dropped 1.5% to HK $133.70, Meituan fell 2.4% to HK $147.10, Alibaba Group Holding decreased 1.3% to HK $81.05. and Baidu declined 0.9% to HK $80.0. 

Property developers continued the decline as activities in top cities outside three key urban regions are expected to remain weak in 2025. 

China Vanke Ltd. decreased 1.6% to HK $4.95, China Resources Land fell 0.7% to HK $22.0, Longfor Group dropped 0.9% to HK $9.84, and Henderson Land Development declined 1.7% to HK $22.85. 

India Movers: Arkade Developers, ICICI Securities, Info Edge, Macrotech Developers, NESCO

Stock market indexes rebounded from the sharp losses in the previous session after the HMPV scare dampened market sentiment. The rupee traded at a new record low for the tenth session in a row. 

The Sensex index increased by 0.6% to 78,409.64, and the Nifty index rose by 0.6% to 23,767.30. 

On the Mumbai stock exchange, 47 stocks traded at their 52-week highs, and 55 stocks traded at their 52-week lows.

Macrotech Developers Ltd. rose 0.7% to ₹1,356.0, and the residential property developer reported record quarterly presales in the December quarter. 

Booking for new residential flats increased 32% from a year ago to ₹4,510 crore in the fiscal third quarter. 

ICICI Securities Ltd. increased 0.9% to ₹847.0, and the brokerage company settled for ₹40 lakh with the SEBI for the misuse of the stock trading system and failing to monitor staff for following the regulatory guidelines. 

Arkade Developers Ltd. increased 2.6% to ₹176.78 after the company said it signed deals to redevelop three residential projects in the western suburb region of Mumbai with a revenue potential of ₹2,150 crore. 

Info Edge India Ltd. decreased 2.9% to ₹8,555.0 after the parent company of Naukri.com reported higher revenue in the December quarter. 

Revenue in the fiscal third quarter increased 15.8% to ₹668.3 crore from ₹576.9 crore a year ago. 

Recruitment solution segment revenue advanced 15.2% to ₹494 crore from ₹428.9 crore a year ago. 

NESCO Ltd. increased 1.2% to ₹1,005.50, and the company was declared as the lowest bidder for developing and operating rest areas and facilities on a concession basis in the South Zone on the Bengaluru-Chennai Corridor Expressway Phase II. 

India Movers: Arkade Developers, ICICI Securities, Info Edge, Macrotech Developers, NESCO

Stock market indexes rebounded from the sharp losses in the previous session after the HMPV scare dampened market sentiment. The rupee traded at a new record low for the tenth session in a row. 

The Sensex index increased by 0.6% to 78,409.64, and the Nifty index rose by 0.6% to 23,767.30. 

On the Mumbai stock exchange, 47 stocks traded at their 52-week highs, and 55 stocks traded at their 52-week lows.

Macrotech Developers Ltd. rose 0.7% to ₹1,356.0, and the residential property developer reported record quarterly presales in the December quarter. 

Booking for new residential flats increased 32% from a year ago to ₹4,510 crore in the fiscal third quarter. 

ICICI Securities Ltd. increased 0.9% to ₹847.0, and the brokerage company settled for ₹40 lakh with the SEBI for the misuse of the stock trading system and failing to monitor staff for following the regulatory guidelines. 

Arkade Developers Ltd. increased 2.6% to ₹176.78 after the company said it signed deals to redevelop three residential projects in the western suburb region of Mumbai with a revenue potential of ₹2,150 crore. 

Info Edge India Ltd. decreased 2.9% to ₹8,555.0 after the parent company of Naukri.com reported higher revenue in the December quarter. 

Revenue in the fiscal third quarter increased 15.8% to ₹668.3 crore from ₹576.9 crore a year ago. 

Recruitment solution segment revenue advanced 15.2% to ₹494 crore from ₹428.9 crore a year ago. 

NESCO Ltd. increased 1.2% to ₹1,005.50, and the company was declared as the lowest bidder for developing and operating rest areas and facilities on a concession basis in the South Zone on the Bengaluru-Chennai Corridor Expressway Phase II. 

Wall Street Indexes Approach Record Highs as Tech Stocks Rebound

Wall Street indexes advanced in Monday's trading amid positive investor sentiment and economic outlook. 

The S&P 500 index and the Nasdaq Composite jumped more than 1% as investors awaited the start of earnings season and banks and tech stocks were in focus. 

Advanced chipmakers traded higher after Taiwan-based Foxconn reported a strong increase in revenue in the December quarter, driven by a continued increase in demand for artificial intelligence servers. 

New factory orders declined 0.4% from the previous month to $586.1 billion in November, the U.S. Census Bureau reported  Monday. 

Orders for October were revised to $588.2 billion, an increase of 0.5% form the previous month. 

Durable goods orders, declined in three of the last four months, fell 1.2% from the previous month to $287.8 billion and non-durable goods edged up 0.4% to $301.4 billion.  

This week investors are looking forward to the release of the international trade balance for November and job openings and non-farm payrolls reports for December.

Bond yields are likely to trade volatile as investors await the release of the JOLT report on Tuesday, ADP's private payrolls update on Wednesday, and the non-farm payroll report on Friday.

The New York Stock Exchange will be closed Thursday to mourn the death of former President Jimmy Carter. 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 1.2% to 6,015.70, the Nasdaq Composite rose 1.80% to 19,974.45, and the Russell 2000 index inched up by 0.7% to 2,283.89. 

The yield on 2-year Treasury notes edged higher to 4.26%, 10-year Treasury notes inched up to 4.59%, and 30-year Treasury bonds increased to 4.81%.

WTI crude oil increased $0.08 to $74.04 a barrel, and natural gas prices edged up 21 cents to $3.67 a thermal unit.

Gold decreased by $0.32 to $2,637.96 an ounce, and silver rose by $0.52 to $30.13. 

The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 1.18 to 107.87 and traded at a two-year high. 

U.S. Stock Movers 

Foxconn said revenue in the December quarter increased 15.2% to NT $2.13, or $64.7 billion. and in December jumped 42.3% to NT$654.8 billion. 

The company said it will release full fourth-quarter financial statements on March 14. 

Nvidia, Broadcom, and Micron Technology advanced between 2% and 4%, following Foxconn's fourth quarter sales update. 

European Stock Market Indexes Moderately Higher After Business Activities Improved In December 

Stock market indexes in the eurozone advanced in Monday's trading, and investors reacted to the latest updates on the manufacturing and services activities. 

Benchmark indexes in Frankfurt, Paris, and Milan advanced, but in London eased as investors reacted to weak but improving business activities.

The HCOB Germany Composite PMI improved to 48.0 in December from 47.2 in November, said S&P Global in a report released on Monday. 

The HCOB France Composite PMI was revised to 47.5 in December from the preliminary estimate of 46.7 and from a ten-month low of 45.9 in November, said S&P Global in a separate report on Monday. 

The Euro Area's Composite PMI advanced to 49.6 in December from 48.30 in November, S&P Global said in a separate report on Monday.

Service sector activities picked up growth in the eurozone, Germany, and France in December. 

Services PMI in the eurozone increased to 51.6 from 49.6; in Germany it rose to 51.30 from 49.20, and in France to 49.30 from 46.90 in the previous month, respectively. 

Europe Indexes and Yields

The DAX index increased by 1.4% to 20,186.24; the CAC-40 index rose by 2.1% to 7,436.55; and the FTSE 100 index inched higher by 0.2% to 8,236.19. 

The yield on 10-year German bonds edged higher to 2.43%, French bonds rose to 3.27%, the UK gilts decreased to 4.60%, and Italian bonds rose to 3.58%.

The euro edged lower to $1.033; the British pound inched down to $1.246; and the U.S. dollar strengthened to 90.64 Swiss cents.

Brent crude increased $0.08 to $76.59 a barrel, and the Dutch TTF natural gas fell by €2.21 to €47.40 per MWh. 

Europe Stock Movers

Automobile makers advanced in Frankfurt and Paris, and luxury stocks in Paris rebounded from last week's weakness. 

Volkswagen AG gained 3.4% to €89.74, Mercedes-Benz Group jumped 4.2% to €54.56, and Porsche Automobil Holding SE advanced 3.2% to €37.09. 

Hermes International gained 3.4% to €2,312.0, LVMH Moet Hennessy increased 3.4% to €632.0, and Kering SA added 2.4% to €231.0. 

BNP Paribas SA gained 2.9% to €59.97, Societe Generale increased 3.3% to €27.41, and UniCredit SpA advanced 1.2% to €38.79.

Japan's Benchmark Indexes Dropped 1%, Toyota's U.S. Sales Struggled In December 

Stock market indexes in Tokyo closed down in Monday's trading after investors returned from a weeklong holiday. 

The Nikkei 225 stock average decreased 1.5%, and the broader TOPIX index dropped 1% as investors worried about the rate path and domestic political uncertainties. 

The Nikkei 225 stock average advanced 19.2%, and the TOPIX index gained 17.7%, and both indexes advanced for the second year in a row. 

Market sentiment remained cautious on the first trading session of 2025 amid worries about the stability of the domestic minority government, a potential increase in U.S. tariffs on Japanese goods, and rising competition from Chinese electric vehicle makers.

Japan Stock Movers 

The Nikkei 225 Stock Average declined 1.5% to 39,307.08, and the broader TOPIX index fell 1% to 2,755.44. 

Technology stocks, financial services providers, and retailers lacked momentum in Tokyo trading. 

Tokyo Electron Ltd. increased 0.5% to ¥24,305.0, Advantest Corp. added 1% to ¥24,305.0, and Screen Holdings advanced 1.3% to ¥9,611.0. 

Toyota Motor declined 4.4% to ¥3,008.0 after the vehicle maker reported a decline in sales in the final quarter in the U.S. 

The company reported fourth quarter sales of 603,104 vehicles, a decrease of 2.7% on a volume basis and a decrease of 5.2% on a daily sales rate basis compared to the fourth quarter of 2023. 

December 2024 U.S. sales totaled 209,953 vehicles, a decrease of 7.1% on a volume basis and a decrease of 3.4% on a DSR basis compared to December 2023.

Toyota Motor North America sales increased 3.7% to 2,332,623 vehicles on a volume basis and an increase of 3.1% on a daily selling rate, or DSR basis, compared to 2023.

Lexus division reported its best-ever annual sales in its 35-year history. 

Nippon Steel Corp. declined 0.4% to ¥3,160.0 after U.S. President Joe Biden blocked the company's $15 billion deal to acquire the Pittsburgh-based U.S. Steel. 

Nippon Steel president Tadashi Imai said the company is reviewing its options, including suing the U.S. government for blocking its acquisition. 

Fast Retailing Co. Ltd. dropped 4.2% to ¥51,560.0, and Seven I Holdings declined 1.9% to ¥2,439.50 ahead of their earnings reports. 

Dai-ichi Life Holdings decreased 0.05% to ¥4,233.0 after the insurance company took a loss of ¥140 billion after it sold ¥500 billion Japanese government notes with maturities of 20 and 40 years, in the fiscal-half ending in September. 

China Policy Officials and PBoC Governor Vow to Offer More Stimulus Support 

Investor sentiment in China and Hong Kong remained subdued amid worries of ongoing economic growth deceleration and lack of corporate earnings growth. 

The Hang Seng index declined 0.4%, and the mainland-focused CSI 300 index dropped 0.2% amid fading hopes of imminent steps by Beijing to revive consumer spending. 

Over the weekend the People's Bank of China announced its plans to offer more liquidity support for the purchase of stocks to institutional investors. 

The country's top economic planner said that China plans to expand its trade-in program to cover industrial equipment, computer devices, and other electronic items.

In 2025, China's trade-in program will cover many industrial equipment categories and personal computing devices funded by long-term bonds, said Yuan Da, deputy secretary general of the National Development and Reform Commission, at a press conference held on Friday. 

As of August, Beijing had distributed 150 billion yuan, or about $21 billion, to local governments to subsidize purchases of home appliances and electric vehicles. 

However, the trade-in program is likely to be less effective in 2025 amid waning demand for durable goods and falling retail sales in Beijing and Shanghai. 

Leaders of the Shanghai and Shenzhen stock exchanges confirmed that they recently held meetings with foreign investors reaffirming their commitments to capital markets reforms. 

Despite public announcements by policy officials and market regulators, market sentiment remained negative amid ongoing weakness in the property market and the manufacturing sector. 

The Caixin Manufacturing PMI eased to 50.5 in December from 51.5 in November, confirming the slowdown reported by the official measure reported by the statistical bureau on December 31. 

The Caixin China General Services PMI rose to 52.2 in December from 51.5 in November, a seven-month high. 

The services sector activities accelerated amid rising domestic orders despite falling export orders. and upbeat sentiment. 

China Stock Movers 

The Hang Seng index decreased 0.4% to 19,683.12, and the mainland-focused CSI 300 index fell 0.2% to 3,767.0. 

Tech stocks advanced in the hopes of higher sales after policymakers vowed to expand the trade-in program. 

Lenovo Group increased 0.7% to HK $9.90, SMIC gained 0.7% to HK $29.75, and Contemporary Amperex Technology Co Ltd decreased 0.6% to ¥255.88. 

China Vanke Co. Ltd. decreased 1.4% to HK $5.02, China Resources Land fell 1.1% to HK $22.20, and Longfor Group Holdings fell 0.1% to HK $9.90. 

Alibaba Group declined 0.5% to HK $82.15, Baidu Inc. fell 0.6% to HK $80.60, JD.com added 1.1% to HK $135.60, and Meituan dropped 3.1% to HK $148.90. 

Wall Street Indexes Approach Record Highs as Tech Stocks Rebound

Wall Street indexes advanced in Monday's trading amid positive investor sentiment and economic outlook. 

The S&P 500 index and the Nasdaq Composite jumped more than 1% as investors awaited the start of earnings season and banks and tech stocks were in focus. 

Advanced chipmakers traded higher after Taiwan-based Foxconn reported a strong increase in revenue in the December quarter, driven by a continued increase in demand for artificial intelligence servers. 

New factory orders declined 0.4% from the previous month to $586.1 billion in November, the U.S. Census Bureau reported  Monday. 

Orders for October were revised to $588.2 billion, an increase of 0.5% form the previous month. 

Durable goods orders, declined in three of the last four months, fell 1.2% from the previous month to $287.8 billion and non-durable goods edged up 0.4% to $301.4 billion.  

This week investors are looking forward to the release of the international trade balance for November and job openings and non-farm payrolls reports for December.

Bond yields are likely to trade volatile as investors await the release of the JOLT report on Tuesday, ADP's private payrolls update on Wednesday, and the non-farm payroll report on Friday.

The New York Stock Exchange will be closed Thursday to mourn the death of former President Jimmy Carter. 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 1.2% to 6,015.70, the Nasdaq Composite rose 1.80% to 19,974.45, and the Russell 2000 index inched up by 0.7% to 2,283.89. 

The yield on 2-year Treasury notes edged higher to 4.26%, 10-year Treasury notes inched up to 4.59%, and 30-year Treasury bonds increased to 4.81%.

WTI crude oil increased $0.08 to $74.04 a barrel, and natural gas prices edged up 21 cents to $3.67 a thermal unit.

Gold decreased by $0.32 to $2,637.96 an ounce, and silver rose by $0.52 to $30.13. 

The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 1.18 to 107.87 and traded at a two-year high. 

U.S. Stock Movers 

Foxconn said revenue in the December quarter increased 15.2% to NT $2.13, or $64.7 billion. and in December jumped 42.3% to NT$654.8 billion. 

The company said it will release full fourth-quarter financial statements on March 14. 

Nvidia, Broadcom, and Micron Technology advanced between 2% and 4%, following Foxconn's fourth quarter sales update. 

European Stock Market Indexes Moderately Higher After Business Activities Improved In December 

Stock market indexes in the eurozone advanced in Monday's trading, and investors reacted to the latest updates on the manufacturing and services activities. 

Benchmark indexes in Frankfurt, Paris, and Milan advanced, but in London eased as investors reacted to weak but improving business activities.

The HCOB Germany Composite PMI improved to 48.0 in December from 47.2 in November, said S&P Global in a report released on Monday. 

The HCOB France Composite PMI was revised to 47.5 in December from the preliminary estimate of 46.7 and from a ten-month low of 45.9 in November, said S&P Global in a separate report on Monday. 

The Euro Area's Composite PMI advanced to 49.6 in December from 48.30 in November, S&P Global said in a separate report on Monday.

Service sector activities picked up growth in the eurozone, Germany, and France in December. 

Services PMI in the eurozone increased to 51.6 from 49.6; in Germany it rose to 51.30 from 49.20, and in France to 49.30 from 46.90 in the previous month, respectively. 

Europe Indexes and Yields

The DAX index increased by 1.4% to 20,186.24; the CAC-40 index rose by 2.1% to 7,436.55; and the FTSE 100 index inched higher by 0.2% to 8,236.19. 

The yield on 10-year German bonds edged higher to 2.43%, French bonds rose to 3.27%, the UK gilts decreased to 4.60%, and Italian bonds rose to 3.58%.

The euro edged lower to $1.033; the British pound inched down to $1.246; and the U.S. dollar strengthened to 90.64 Swiss cents.

Brent crude increased $0.08 to $76.59 a barrel, and the Dutch TTF natural gas fell by €2.21 to €47.40 per MWh. 

Europe Stock Movers

Automobile makers advanced in Frankfurt and Paris, and luxury stocks in Paris rebounded from last week's weakness. 

Volkswagen AG gained 3.4% to €89.74, Mercedes-Benz Group jumped 4.2% to €54.56, and Porsche Automobil Holding SE advanced 3.2% to €37.09. 

Hermes International gained 3.4% to €2,312.0, LVMH Moet Hennessy increased 3.4% to €632.0, and Kering SA added 2.4% to €231.0. 

BNP Paribas SA gained 2.9% to €59.97, Societe Generale increased 3.3% to €27.41, and UniCredit SpA advanced 1.2% to €38.79.

Japan's Benchmark Indexes Dropped 1%, Toyota's U.S. Sales Struggled In December 

Stock market indexes in Tokyo closed down in Monday's trading after investors returned from a weeklong holiday. 

The Nikkei 225 stock average decreased 1.5%, and the broader TOPIX index dropped 1% as investors worried about the rate path and domestic political uncertainties. 

The Nikkei 225 stock average advanced 19.2%, and the TOPIX index gained 17.7%, and both indexes advanced for the second year in a row. 

Market sentiment remained cautious on the first trading session of 2025 amid worries about the stability of the domestic minority government, a potential increase in U.S. tariffs on Japanese goods, and rising competition from Chinese electric vehicle makers.

Japan Stock Movers 

The Nikkei 225 Stock Average declined 1.5% to 39,307.08, and the broader TOPIX index fell 1% to 2,755.44. 

Technology stocks, financial services providers, and retailers lacked momentum in Tokyo trading. 

Tokyo Electron Ltd. increased 0.5% to ¥24,305.0, Advantest Corp. added 1% to ¥24,305.0, and Screen Holdings advanced 1.3% to ¥9,611.0. 

Toyota Motor declined 4.4% to ¥3,008.0 after the vehicle maker reported a decline in sales in the final quarter in the U.S. 

The company reported fourth quarter sales of 603,104 vehicles, a decrease of 2.7% on a volume basis and a decrease of 5.2% on a daily sales rate basis compared to the fourth quarter of 2023. 

December 2024 U.S. sales totaled 209,953 vehicles, a decrease of 7.1% on a volume basis and a decrease of 3.4% on a DSR basis compared to December 2023.

Toyota Motor North America sales increased 3.7% to 2,332,623 vehicles on a volume basis and an increase of 3.1% on a daily selling rate, or DSR basis, compared to 2023.

Lexus division reported its best-ever annual sales in its 35-year history. 

Nippon Steel Corp. declined 0.4% to ¥3,160.0 after U.S. President Joe Biden blocked the company's $15 billion deal to acquire the Pittsburgh-based U.S. Steel. 

Nippon Steel president Tadashi Imai said the company is reviewing its options, including suing the U.S. government for blocking its acquisition. 

Fast Retailing Co. Ltd. dropped 4.2% to ¥51,560.0, and Seven I Holdings declined 1.9% to ¥2,439.50 ahead of their earnings reports. 

Dai-ichi Life Holdings decreased 0.05% to ¥4,233.0 after the insurance company took a loss of ¥140 billion after it sold ¥500 billion Japanese government notes with maturities of 20 and 40 years, in the fiscal-half ending in September. 

China Policy Officials and PBoC Governor Vow to Offer More Stimulus Support 

Investor sentiment in China and Hong Kong remained subdued amid worries of ongoing economic growth deceleration and lack of corporate earnings growth. 

The Hang Seng index declined 0.4%, and the mainland-focused CSI 300 index dropped 0.2% amid fading hopes of imminent steps by Beijing to revive consumer spending. 

Over the weekend the People's Bank of China announced its plans to offer more liquidity support for the purchase of stocks to institutional investors. 

The country's top economic planner said that China plans to expand its trade-in program to cover industrial equipment, computer devices, and other electronic items.

In 2025, China's trade-in program will cover many industrial equipment categories and personal computing devices funded by long-term bonds, said Yuan Da, deputy secretary general of the National Development and Reform Commission, at a press conference held on Friday. 

As of August, Beijing had distributed 150 billion yuan, or about $21 billion, to local governments to subsidize purchases of home appliances and electric vehicles. 

However, the trade-in program is likely to be less effective in 2025 amid waning demand for durable goods and falling retail sales in Beijing and Shanghai. 

Leaders of the Shanghai and Shenzhen stock exchanges confirmed that they recently held meetings with foreign investors reaffirming their commitments to capital markets reforms. 

Despite public announcements by policy officials and market regulators, market sentiment remained negative amid ongoing weakness in the property market and the manufacturing sector. 

The Caixin Manufacturing PMI eased to 50.5 in December from 51.5 in November, confirming the slowdown reported by the official measure reported by the statistical bureau on December 31. 

The Caixin China General Services PMI rose to 52.2 in December from 51.5 in November, a seven-month high. 

The services sector activities accelerated amid rising domestic orders despite falling export orders. and upbeat sentiment. 

China Stock Movers 

The Hang Seng index decreased 0.4% to 19,683.12, and the mainland-focused CSI 300 index fell 0.2% to 3,767.0. 

Tech stocks advanced in the hopes of higher sales after policymakers vowed to expand the trade-in program. 

Lenovo Group increased 0.7% to HK $9.90, SMIC gained 0.7% to HK $29.75, and Contemporary Amperex Technology Co Ltd decreased 0.6% to ¥255.88. 

China Vanke Co. Ltd. decreased 1.4% to HK $5.02, China Resources Land fell 1.1% to HK $22.20, and Longfor Group Holdings fell 0.1% to HK $9.90. 

Alibaba Group declined 0.5% to HK $82.15, Baidu Inc. fell 0.6% to HK $80.60, JD.com added 1.1% to HK $135.60, and Meituan dropped 3.1% to HK $148.90. 

Wall Street Indexes Extend Rally Ahead of Labor Market Reports

Wall Street indexes advanced in Monday's trading amid positive investor sentiment and economic outlook. 

The S&P 500 index and the Nasdaq Composite advanced in early trading as investors awaited the start of earnings season and banks and tech stocks were in focus. 

Advanced chipmakers traded higher after Taiwan-based Foxconn reported a strong increase in revenue in the December quarter, driven by a continued increase in demand for artificial intelligence servers. 

This week investors are looking forward to the release of the international trade balance for November and job openings and non-farm payrolls reports for December.

Bond yields are likely to trade volatile as investors await the release of the JOLT report on Tuesday, ADP's private payrolls update on Wednesday, and the non-farm payroll report on Friday.

The New York Stock Exchange will be closed Thursday to mourn the death of former President Jimmy Carter. 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.7% to 6,039.60, the Nasdaq Composite rose 1.04% to 19,841.31, and the Russell 2000 index inched up by 0.2% to 2,279.16. 

The yield on 2-year Treasury notes edged higher to 4.26%, 10-year Treasury notes inched up to 4.59%, and 30-year Treasury bonds increased to 4.81%.

WTI crude oil increased $0.33 to $74.29 a barrel, and natural gas prices edged up 29 cents to $3.64 a thermal unit.

Gold increased by $7.56 to $2,645.60 an ounce, and silver rose by $0.22 to $30.27. 

The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 1.18 to 107.87 and traded at a two-year high. 

U.S. Stock Movers 

Foxconn said revenue in the December quarter increased 15.2% to NT $2.13, or $64.7 billion. and in December jumped 42.3% to NT$654.8 billion. 

The company said it will release full fourth-quarter financial statements on March 14. 

Nvidia, Broadcom, and Micron Technology advanced between 2% and 4%, following Foxconn's fourth quarter sales update. 

Wall Street Indexes Extend Rally Ahead of L

Wall Street indexes advanced in Monday's trading amid positive investor sentiment and economic outlook. 

The S&P 500 index and the Nasdaq Composite advanced in early trading as investors awaited the start of earnings season and banks and tech stocks were in focus. 

Advanced chipmakers traded higher after Taiwan-based Foxconn reported a strong increase in revenue in the December quarter, driven by a continued increase in demand for artificial intelligence servers. 

This week investors are looking forward to the release of the international trade balance for November and job openings and non-farm payrolls reports for December.

Bond yields are likely to trade volatile as investors await the release of the JOLT report on Tuesday, ADP's private payrolls update on Wednesday, and the non-farm payroll report on Friday.

The New York Stock Exchange will be closed Thursday to mourn the death of former President Jimmy Carter. 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.7% to 6,039.60, the Nasdaq Composite rose 1.04% to 19,841.31, and the Russell 2000 index inched up by 0.2% to 2,279.16. 

The yield on 2-year Treasury notes edged higher to 4.26%, 10-year Treasury notes inched up to 4.59%, and 30-year Treasury bonds increased to 4.81%.

WTI crude oil increased $0.33 to $74.29 a barrel, and natural gas prices edged up 29 cents to $3.64 a thermal unit.

Gold increased by $7.56 to $2,645.60 an ounce, and silver rose by $0.22 to $30.27. 

The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 1.18 to 107.87 and traded at a two-year high. 

U.S. Stock Movers 

Foxconn said revenue in the December quarter increased 15.2% to NT $2.13, or $64.7 billion. and in December jumped 42.3% to NT$654.8 billion. 

The company said it will release full fourth-quarter financial statements on March 14. 

Nvidia, Broadcom, and Micron Technology advanced between 2% and 4%, following Foxconn's fourth quarter sales update. 

European Stock Market Indexes Moderately Higher After Business Activities Improved In December

Stock market indexes in the eurozone advanced in Monday's trading, and investors reacted to the latest updates on the manufacturing and services activities. 

Benchmark indexes in Frankfurt, Paris, and Milan advanced, but in London eased as investors reacted to weak but improving business activities.

The HCOB Germany Composite PMI improved to 48.0 in December from 47.2 in November, said S&P Global in a report released on Monday. 

The HCOB France Composite PMI was revised to 47.5 in December from the preliminary estimate of 46.7 and from a ten-month low of 45.9 in November, said S&P Global in a separate report on Monday. 

The Euro Area's Composite PMI advanced to 49.6 in December from 48.30 in November, S&P Global said in a separate report on Monday.

Service sector activities picked up growth in the eurozone, Germany, and France in December. 

Services PMI in the eurozone increased to 51.6 from 49.6; in Germany it rose to 51.30 from 49.20, and in France to 49.30 from 46.90 in the previous month, respectively. 

Europe Indexes and Yields

The DAX index increased by 0.4% to 19,988.87; the CAC-40 index rose by 0.6% to 7,322.36; and the FTSE 100 index inched lower by 0.1% to 8,215.44. 

The yield on 10-year German bonds edged higher to 2.43%, French bonds rose to 3.27%, the UK gilts decreased to 4.60%, and Italian bonds rose to 3.58%.

The euro edged lower to $1.033; the British pound inched down to $1.246; and the U.S. dollar strengthened to 90.64 Swiss cents.

Brent crude increased $0.03 to $76.53 a barrel, and the Dutch TTF natural gas fell by €0.99 to €48.66 per MWh. 

Europe Stock Movers

Automobile makers advanced in Frankfurt and Paris, and luxury stocks in Paris rebounded from last week's weakness. 

Volkswagen AG gained 3.4% to €89.74, Mercedes-Benz Group jumped 4.2% to €54.56, and Porsche Automobil Holding SE advanced 3.2% to €37.09. 

Hermes International gained 3.4% to €2,312.0, LVMH Moet Hennessy increased 3.4% to €632.0, and Kering SA added 2.4% to €231.0. 

BNP Paribas SA gained 2.9% to €59.97, Societe Generale increased 3.3% to €27.41, and UniCredit SpA advanced 1.2% to €38.79.

European Stock Market Indexes Moderately Higher After Business Activities Indexes Improved In December

Stock market indexes in the eurozone advanced in Monday's trading, and investors reacted to the latest updates on the manufacturing and services activities. 

Benchmark indexes in Frankfurt, Paris, and Milan advanced, but in London eased as investors reacted to weak but improving business activities.

The HCOB Germany Composite PMI improved to 48.0 in December from 47.2 in November, said S&P Global in a report released on Monday. 

The HCOB France Composite PMI was revised to 47.5 in December from the preliminary estimate of 46.7 and from a ten-month low of 45.9 in November, said S&P Global in a separate report on Monday. 

The Euro Area's Composite PMI advanced to 49.6 in December from 48.30 in November, S&P Global said in a separate report on Monday.

Service sector activities picked up growth in the eurozone, Germany, and France in December. 

Services PMI in the eurozone increased to 51.6 from 49.6; in Germany it rose to 51.30 from 49.20, and in France to 49.30 from 46.90 in the previous month, respectively. 

Europe Indexes and Yields

The DAX index increased by 0.4% to 19,988.87; the CAC-40 index rose by 0.6% to 7,322.36; and the FTSE 100 index inched lower by 0.1% to 8,215.44. 

The yield on 10-year German bonds edged higher to 2.43%, French bonds rose to 3.27%, the UK gilts decreased to 4.60%, and Italian bonds rose to 3.58%.

The euro edged lower to $1.033; the British pound inched down to $1.246; and the U.S. dollar strengthened to 90.64 Swiss cents.

Brent crude increased $0.03 to $76.53 a barrel, and the Dutch TTF natural gas fell by €0.99 to €48.66 per MWh. 

Europe Stock Movers

Automobile makers advanced in Frankfurt and Paris, and luxury stocks in Paris rebounded from last week's weakness. 

Volkswagen AG gained 3.4% to €89.74, Mercedes-Benz Group jumped 4.2% to €54.56, and Porsche Automobil Holding SE advanced 3.2% to €37.09. 

Hermes International gained 3.4% to €2,312.0, LVMH Moet Hennessy increased 3.4% to €632.0, and Kering SA added 2.4% to €231.0. 

BNP Paribas SA gained 2.9% to €59.97, Societe Generale increased 3.3% to €27.41, and UniCredit SpA advanced 1.2% to €38.79.