📆 Monday, January 6
► European rose on Monday, with the Stoxx 600 up over 0.6%, driven by gains in semiconductor companies such as ASML Holding. The boost came as Microsoft announced plans to spend $80 billion on data centers, mirroring tech-led gains in Asia. Also auto stocks advanced heavily – boosted by stabilizing Chinese markets and a promising partnership between Volkswagen and Xpeng for building a super-fast charging network in China. Services PMI in Germany, France, Italy and Spain (and the Eurozone as a whole) moved higher. In particular Spanisch services PMI came in very strong (at 57.3 well above expectations of 54.1); Also French services PMI came in significantly better than expected (49.3 vs. 48.2 expected) as predicted also by our Chief Analyst on Friday but is still in contraction territory. Markets are now awaiting German inflation data due later today.
► US markets gained, as traders looked ahead to a data-heavy week. The S&P 500 (+0.7%) and Nasdaq (+1%) moved higher, supported by resilience in tech stocks. Treasury yields remain elevated, with 30-year yields reaching their highest since 2023 earlier today, and 10-year yield holding near its highest levels since May at around 4.595%, reflecting a robust U.S. economic backdrop. Investors anticipate key reports this week, such as the JOLTS (Tuesday), ADP Employment Survey (Wednesday), FOMC Minutes (Wednesday), and the December NFP data (Friday), which will provide critical clues ahead of the Federal Reserve's next meeting.
► Asian markets saw mixed movements. Japan’s Nikkei dropped over 1.6%, impacted by weak composite and services PMIs, which fueled expectations of continued dovishness from the Bank of Japan. The JPY weakened to its lowest level since July. In China, the services PMI climbed to 52.2, marking the fastest expansion since May, driven by strong domestic demand, though the offshore yuan weakened to a 16-month low. South Korea’s KOSPI surged 1.1%, reaching a three-week high on gains in tech stocks like SK Hynix and Hon Hai Precision Industry, which are benefiting from Microsoft's data center investment plan.
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