Breaking Down the Financial Highlights from Last Week

US CPI data reveal improved outcomes with core CPI figures coming in lower than anticipated. Stocks surged following the release of the data, renewing hopes for a short-term rate cut. CPI concluded the year with a 2.9% rise, aiding the soft landing.

Anyhow, as the core inflation rate has fallen to 3.2%. Core inflation is a crucial economic indicator as it excludes volatile items such as food and energy prices, providing a clearer view of the underlying inflation trends affecting the economy. The persistence of core inflation at this elevated level raises significant concerns among economists and policymakers alike, as it suggests that inflationary pressures may still be entrenched in the economy. This situation could lead to further scrutiny of monetary policy measures and potential adjustments to interest rates in an effort to stabilize prices and curb inflation. Additionally, the implications of sustained core inflation extend beyond just economic metrics; they can influence consumer behavior, wage negotiations, and overall economic conditions.

The US 10-year treasury yield fell by more than 20 basis points, and the dollar index declined after a rally that lasted for months.

The UK CPI data brings encouraging news for a possible rate cut next month, as it dropped below the anticipated 2.6% figure.

Trump coin was launched and surged by 300% overnight. The meme coin associated with Trump achieved a market cap of $13 billion.

In 2024, China's economy performed a growth rate of 5%, meeting Beijing's economic goals for the year. Additionally, China's export surplus in 2024 approached 1 trillion dollars, with exports totaling 3.58 trillion in goods and services.

In the upcoming week, there are several significant economic and political events that market participants and analysts will be closely monitoring. One of the most anticipated events is the inauguration of Donald Trump, which is expected to have far-reaching implications for both domestic and international policies. This event marks a pivotal moment in American politics, as it could set the tone for Trump's administration and influence investor sentiment across various sectors. Additionally, the consumer sentiment index from the Eurozone will be released, providing valuable insights into the economic outlook and confidence levels of consumers within the region. Moreover, the Purchasing Managers' Index (PMI) data from both the United States and the Eurozone will be published. The PMI is a key indicator of economic health, as it surveys purchasing managers in the manufacturing and service sectors to gauge business conditions. A higher PMI reading typically indicates expansion, while a lower reading suggests contraction. Lastly, there is speculation regarding a potential rise in interest rates by the Bank of Japan.