Market Overview

Global markets are going through an important transition this week as investors navigate a mix of opportunities and uncertainties created by political change, economic data and corporate earnings. The US is poised for a significant shift in policy direction as Donald Trump begins his second term in office, raising expectations of business-friendly policy changes and deregulation that could redefine the investment landscape.

U.S. Equities & Indices 

S&P 500 closed at 5,996.66, up 3.71% while Dow Jones Industrial Average finished at 43,487.83 rising 3.69% over the week. Nasdaq climbed 2.45%, ending at 19,630.20.

In equities, the Magnificent Seven stocks (Apple, Amazon, Microsoft, Alphabet, Meta, Tesla, and Nvidia) largely exhibited bullish performance, with the exception of Apple, which declined 1.89% for the week. Tesla led the group with a 5.75% weekly gain, followed by Alphabet, which rose 4.99%. Other notable performers included Nvidia (+4.55%), Meta Platforms (+4.44%), Amazon (+3.42%), and Microsoft (+2.84%).

Global markets

On the global side, Asian markets had a mixed performance last week. Hong Kong’s Hang Seng Index rose by 2.73%, closing at 19,584.06 and China’s Shanghai Composite gained 2.31%, closing at 3,241.82. In contrast, India’s Sensex declined by 0.98% closing at 76,619.33.

In Europe, the Euro Stoxx 50 index advanced by 3.44% to close at 5,148.30, reaching its highest level in a month. Major contributors included Kering (+6.13%), LVMH (+6.01%), and Hermès (+5.82%).

Commodities

Oil prices remained steady last week, with crude oil trading at $78.04 per barrel. Gold extended its rally, closing at $2,703.24 per ounce. Silver also rose closing the market at $30.36 per ounce and continuing its upward trend alongside gold.

Crypto

The cryptocurrency market experienced significant gains last week. Bitcoin reached $105,120 (+9,28 %), while Ethereum rose to $3,415 (+5,90 %). Investors are optimistic about the incoming Trump administration, which has signalled support for cryptocurrencies. 

Outlook for the Week Ahead

• U.S. Economic Data Releases

Key data releases this week include U.S. Leading Economic Indicators (January 22), Initial Jobless Claims (January 23), and Existing Home Sales, Consumer Sentiment, and S&P Flash PMIs (January 24).

• Corporate Earnings Reports for Q4 2024

• Trump Administration Announcements

Markets are closely following the Trump administration's upcoming policy announcements, which could have a major impact on global financial markets. Potential changes in trade tariffs could directly impact sectors dependent on international supply chains. At the same time, proposed tax reforms, including corporate tax cuts, could encourage business growth, increased capital spending and higher shareholder returns.