Market Highlights 💡 - 16 December 2024

NASDAQ hits record high on strong chip stock performance; Chinese stock market drops due to disappointing economic policy meeting.

🇺🇸 S&P 500 Index: 0.00% 📈

🇺🇸 NASDAQ Index: 0.12% 📈

🇪🇺 STOXX 600 Index: -0.53% 📉

🇯🇵 Nikkei 225 Index: -0.95% 📉

🇭🇰 Hang Seng Index: -2.09% 📉

🇨🇳 CSI 300 Index: -2.37% 📉

🇸🇬 Straits Times Index: 0.03% 📈

U.S. markets mixed, with the S&P 500 index closing flat, while the NASDAQ composite index rose 0.1%, mainly led by Broadcom. Investors are awaiting guidance on interest rate cuts from the Federal Reserve.

Japan's Bank of Japan Large Manufacturer Index (Tankan Survey) rose slightly from 13 in the previous periods to 14 in Q4 2024, contrary to market expectations of 12.

Eurozone industrial production fell 1.20% year-on-year in October 2024 (forecast was -1.9%), an improvement from the previous -2.2%, due to soaring energy costs, weaker Chinese demand, rising investment financing costs, and cautious consumer spending.

Asia-Pacific markets performed poorly, with the Hong Kong Hang Seng Index and the Shanghai CSI 300 Index falling by -2.1% and -2.4%, respectively, as statements from the Chinese economic meeting failed to provide details on stimulus measures for growth restoration in the coming year.

💡 Upcoming Events: 💡

Monday: U.S. S&P Global Manufacturing PMI Flash, EU HCOB Manufacturing PMI Flash, Japan Jibun Bank Manufacturing PMI Flash, China Industrial Production YoY, Unemployment Rate, Retail Sales YoY.

Tuesday: U.S. data release, including Retail Sales YoY and Industrial Production YoY.

Wednesday: Investors will focus on EU Inflation Rate YoY Final, Japan Export YoY.

Thursday: The U.S. will announce the Federal Reserve's interest rate decision, Final GDP QoQ growth rate, and Jobless Claims, while the Bank of Japan will announce its rate decision.

Friday: At the end of the week, the U.S. Core PCE Price Index YoY, Japan Core Inflation Rate YoY, China 1-Year and 5-Year Loan Prime Rate will be released.

💡 Things to Know Today: 💡

1. Broadcom $Broadcom(AVGO)$ joins the $1 trillion market cap club as CEO Hock Tan predicts $60 to $90 billion in revenue opportunities by 2027, driven by strong demand for AI chips. Its stock surged 21%.

Broadcom 1 trillion company!

2. Palantir Technologies $Palantir Technologies Inc.(PLTR)$ , MicroStrategy $MicroStrategy(MSTR)$  , and Axon Enterprise $Axon Enterprise, Inc.(AXON)$  will be added to the NASDAQ 100 Index, replacing Illumina, Super Micro Computer, and Moderna. These changes will take effect before the market opens on December 23, 2024.

PLTR to Nasdaq!

3. Hong Kong Stock Exchange launched a Comprehensive Fund Platform (IFP), an electronic repository offering data on over 2,000 retail funds, aimed at promoting retail participation and strengthening Hong Kong's position as a global wealth management center.

HKEX

4. South Korean President Yoon Suk Yeol was impeached for failing to implement martial law. He is currently suspended, awaiting a Constitutional Court decision within six months, which may lead to early elections.

Yoon Suk Yeol

5. Malaysia's Ministry of Works projects 2025 construction spending to reach 200 billion MYR, covering government plans, government-linked companies (GLCs), government-linked investment companies (GLICs), and private sector projects, with a focus on infrastructure such as roads, highways, and bridges.

Malaysia Ministry of Works

✅ Key Takeaways:

The market expects the Federal Reserve to cut interest rates by 25 basis points this week, with a 96% probability based on the Chicago Mercantile Exchange FedWatch data. However, strong economic growth and persistent inflation have reduced investor expectations for large rate cuts in 2025.

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