S&P 500 Relies on Tech for Growth in Q4 2024, Says Barclays 
China’s Growth Faces Structural Challenges Amid Doubts Over Data 
UBS Predicts Potential Fed Rate Cut Amid Strong US Economic Data 
Mexico's Undervalued Equity Market Offers Long-Term Investment Potential 
Trump’s "Shock and Awe" Agenda: Executive Orders from Day One 
MAS Holds Monetary Policy Steady as Strong Growth Raises Inflation Risks 
UBS Projects Mixed Market Outlook for 2025 Amid Trump Policy Uncertainty 
RBA Expected to Raise Interest Rates by 25 Basis Points in February, ANZ Forecast Says 
Goldman Predicts 50% Odds of 10% U.S. Tariff on Copper by Q1 Close 
Bank of Korea Expected to Hold Interest Rates as Weak Won Limits Policy Easing 
US Futures Rise as Investors Eye Earnings, Inflation Data, and Wildfire Impacts 
ECB’s Cipollone Backs Digital Euro as Europe Pushes for Payment System Independence 
Stock Futures Dip as Investors Await Key Payrolls Data 
U.S. Prosecutors Investigate Fed Chair Jerome Powell Over Headquarters Renovation 
China's Refining Industry Faces Major Shakeup Amid Challenges 
Philippine Central Bank Signals Steady Interest Rates as Inflation Rises and Growth Slows 
Thailand Economy Faces Competitiveness Challenges as Strong Baht and U.S. Tariffs Pressure Exports 
Bank of America (BofA) analysts predict the Federal Reserve may return to raising interest rates, citing strong economic data and inflation concerns. The recent halt in rate cuts follows robust December payrolls, signaling the end of the current easing cycle.
The threshold for potential rate hikes remains high, as the Fed still views rates as restrictive. However, BofA suggests that if core Personal Consumption Expenditures (PCE) inflation exceeds 3% year-over-year or inflation expectations become unanchored, rate hikes could resume.
Rising U.S. Treasury yields, up 100 basis points since September, reflect economic resilience and persistent inflation, keeping the Fed cautious about further cuts. While higher yields could impact credit quality, especially in commercial real estate, widespread credit deterioration is unlikely if GDP grows at 2-3% and the job market stays strong.
Should inflation pressure force the Fed to act, concerns about a U.S. recession could grow, potentially impacting bank stocks due to heightened credit default risks. BofA analysts advise monitoring "Regulatory relief, Rate backdrop, and Rebounding customer activity" as key factors influencing bank performance in 2025.
Among financial institutions, Wells Fargo and JPMorgan are seen as strong contenders in the money center segment. Goldman Sachs and Morgan Stanley offer promising exposure to a potential recovery in investment banking.
Investors are urged to stay informed as the Fed's decisions could reshape market dynamics and economic forecasts heading into 2025.
