U.S. Dollar Steadies Ahead of Fed Minutes as Markets Eye Policy Divisions 
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S&P 500 Rises Amid Cyclical Stock Gains, Inflation Data Looms 
Elliott Investment Management Takes Significant Stake in BP to Push for Value Growth 
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[Editorial Cartoon] “Tariff Chicken Game” – U.S. and China Speed Toward Economic Catastrophe 
European Stocks Rally on Chinese Growth and Mining Merger Speculation 
Wall Street Ends Mixed as Tech and Financial Stocks Weigh on Markets Amid Thin Holiday Trading 
China Manufacturing PMI Rebounds in December, Offering Boost to Economic Growth Outlook 
S&P 500 Surges Ahead of Trump Inauguration as Markets Rally 
South Korea Inflation Rises to 2.3% in December, Matching Market Expectations 
How the UK’s rollback of banking regulations could risk another financial crisis 
Investors Brace for Market Moves as Trump Begins Second Term 
Asian Markets Slip as Precious Metals Cool, Geopolitical Tensions Weigh on Sentiment 
Citi Forecasts a Volatile but Ongoing Bull Market for S&P 500 in 2026 
IMF Warns Japan of Market Volatility and Interest Rate Risks 
Asian markets declined sharply Monday, led by Australian and Hong Kong shares, as robust U.S. payroll data dampened hopes for imminent Federal Reserve rate cuts. Trading volumes in the region were lighter due to Japan’s market holiday.
Hong Kong’s Hang Seng index dropped significantly, while China’s CSI 300 and Shanghai Composite posted modest losses. Despite better-than-expected December trade data from China, markets saw no boost. In Australia, the S&P/ASX 200 fell 1.4%, although Insignia Financial Ltd surged nearly 3% following an improved buyout offer from Bain Capital.
Friday’s U.S. jobs report revealed surprising strength, with accelerated job growth and a lower unemployment rate, suggesting the Federal Reserve may maintain current interest rates. The Fed, which cut rates by 100 basis points in 2024, now projects fewer reductions in 2025, given persistent inflation and economic resilience.
ING analysts noted, “Strong U.S. jobs data bolsters the likelihood of an extended pause from the Fed, especially in an inflationary environment.” Goldman Sachs has revised its outlook, expecting only two rate cuts this year instead of three.
Elsewhere in Asia, the Philippines’ PSEi Composite fell over 1%, Singapore’s Straits Times Index slid 0.3%, and South Korea’s KOSPI declined 1% amid domestic political tensions.
Markets are bracing for key U.S. data releases this week, including inflation, retail sales, and industrial production figures. China will also announce critical economic indicators, including GDP growth, industrial production, and retail sales, providing insights into its economic health.
With a busy week ahead, global investors are closely monitoring data to gauge economic momentum and future monetary policy directions.
