Market Highlights 💡 - 31 December 2024

Global stock markets generally declined, with market sentiment becoming more risk-averse as we approach 2025.

🇺🇸 S&P 500 Index: -1.07% 📉

🇺🇸 Nasdaq Index: -1.19% 📉

🇪🇺 STOXX 600 Index: -0.46% 📉

🇯🇵 Nikkei 225 Index: -0.96% 📉

🇭🇰 Hang Seng Index: -0.24% 📉

🇨🇳 Shanghai Shenzhen 300 Index: +0.46% 📈

🇸🇬 Straits Times Index: +0.64% 📈

On Monday, U.S. markets generally declined, with the S&P 500 and Nasdaq falling by -1.1% and -1.2%, respectively, due to year-end tax adjustments, valuation concerns, rising U.S. Treasury yields, and growing uncertainty for 2025, leading to a risk-averse mood.

Asia-Pacific markets closed mixed. The Hang Seng Index fell by -0.2%, while the Shanghai Shenzhen 300 Index rose by 0.5%. Investors are awaiting further clarification of stimulus measures from Beijing, while AI stocks listed in China gained due to increased support for domestic tech industries.

Japan's December Jibun Bank Manufacturing Purchasing Managers' Index (PMI) final value rose to 49.6, indicating the slowest contraction in Japanese manufacturing in three months, as production and new orders declined at a slower pace.

Due to slowing exports and weaker business confidence, South Korea's industrial production index declined by -0.7% month-over-month, worse than the expected -0.4%.

💡 Upcoming Events: 💡

On Tuesday, data from China will be released, including NBS Manufacturing and Non-Manufacturing PMI.

On Thursday, U.S. will release Initial Jobless Claims and S&P Global Manufacturing PMI final value. Europe will announce HCOB Manufacturing PMI final value, and China will report Caixin Manufacturing PMI.

By the end of the week, U.S. ISM Manufacturing PMI will be announced on Friday.

💡 Key Things to Know Today: 💡

1. South Korea's low-cost airline Jeju Air saw its stock price fall to a historic low on Monday following the country's deadliest air disaster, which resulted in 179 deaths. 

Jeju Air tragedy 😭

2. The European Commission unconditionally approved Nvidia's $700 million acquisition of Run:ai, a company helping developers optimize AI infrastructure, after it had faced antitrust scrutiny. $NVIDIA Corp(NVDA)$  

Nvidia acquired Run:ai

3. U.S. President-elect Donald Trump expressed support for Congressman Mike Johnson to remain Speaker of the House, just days before the vote to decide on the position.

Mike Johnson

4. U.S. President Joe Biden announced an additional $2.5 billion in security assistance to Ukraine, using his last few weeks in office to increase military aid to Kyiv before President-elect Donald Trump takes office.

Security assistance to Ukraine by Joe Biden

5. Malaysia's embassy in Tehran, in collaboration with the Iranian Institute for Political and International Studies (IPIS), hosted a high-level meeting in Tehran, highlighting Malaysia's important role as the ASEAN chair for 2025.

IPIS

✅ Key Takeaway:

Despite recent weakness, 2024 has been a stellar year for U.S. stocks. The Nasdaq $NASDAQ(.IXIC)$  is expected to see an annual gain of about 30%, while the S&P 500 $S&P 500(.SPX)$  is anticipated to rise by over 24%. 

Wish everyone a Happy New Year in advance!

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