Market Highlights 💡 - 3 January 2025

US markets fell due to cautious trading sentiment; Asian markets dropped as concerns about China's economic growth outlook persist.

🇺🇸 S&P 500: -0.22% 📉

🇺🇸 NASDAQ: -0.15% 📉

🇪🇺 Stoxx 600: +0.62% 📈

🇯🇵 Nikkei 225: Market closed

🇭🇰 Hang Seng: -1.90% 📉

🇨🇳 Shanghai-Shenzhen 300: -2.91% 📉

🇸🇬 Straits Times Index: +0.35% 📈

On Thursday, US markets broadly declined, with the S&P 500 and NASDAQ dropping by -0.2% each, as investors faced strong labor market data, a rising dollar, and a sharp drop in Tesla's stock price at the start of the new year.

Initial jobless claims in the US dropped by 9,000 to 211k, lower than last week's 8-month low of 222k, indicating fewer layoffs by the end of 2024 and signaling a still-healthy labor market.

Asia-Pacific markets generally closed lower, with the Hang Seng Index up while the Shanghai-Shenzhen 300 index dropped by -1.9% and -2.9%, marking the worst start since 2019, as investors remained cautious about China's growth outlook and the global economy before President Donald Trump's return to the White House.

China's December Caixin/S&P Global Manufacturing PMI fell slightly to 50.5, below the expected 51.6, as declining export orders, amidst concerns about trade prospects, suppressed overall sales.

💡 Upcoming Events: 💡

This week, the US ISM Manufacturing PMI will be released on Friday.

💡 Things to Know Today: 💡

1. Singapore's economy grew by 4.3% year-on-year in the fourth quarter, exceeding the expected 3.3%, with 2024 GDP growing by 4.0%, up from 1.1% year-on-year growth in 2023.

Singapore

2. Apple $Apple(AAPL)$  is offering rare discounts of up to 500 RMB on its latest iPhone models in China, attempting to maintain its market share against local competitors like Huawei.

Apple discount

3. Chinese electric vehicle manufacturers such as Nio $NIO Inc.(NIO)$  and Li Auto $Li Auto(LI)$  have joined market leaders Tesla and BYD $BYD COMPANY(01211)$  in extending purchase incentives into early 2025 as the price war in the world's largest car market enters its third year.

Nio and Li Auto

4. Tesla $Tesla Motors(TSLA)$ announced its first annual decline in deliveries, as fourth-quarter deliveries fell short of expectations, and incentives failed to boost demand for its older vehicle models.

Tesla deliveries

5. The Bank of England allocated £46.18 billion in its first short-term repo operation of 2025, the second-largest amount ever, to inject liquidity into the economy.

Bank of England

✅ Key Points:

Amid uncertainties about the Fed's rate cuts, policies from the incoming Donald Trump administration, and various geopolitical hotspots, market participants continue to focus on the strong performance of the US economy.

@Daily_Discussion  @TigerStars  @Tiger_comments  @TigerGPT