Key Global Events that Can Influence the Stock Market This Week!

It was relatively quiet week for the global stock market, which was expected, on the account of lower investor participation and shortened trading week.

2024 was quite volatile but key markets managed to close the year on high note.

Looking at the overall performance of key stock markets and regions- US market performed better than other despite growth slowdown and uncertainty concerns.

It will be a crucial year for the US market, as President Trump will resume his second term of presidency and investors are closely following his policy moves. 

At the end of the week, Nasdaq 225 closed 0.52% lower, while the broader index S&P 500 was down by 0.48%.

Major European stock indexes traded on a mixed note through the week. Germany’s DAX closed the week 2.75% higher. While France’s CAC 40 Index fell 0.99%. The UK’s FTSE 100 Index gained 0.91%. 

Speaking about the Asian markets, India’s Nifty 50 is up by 1.05% in the last week. Japan’s Nikkei 225 is up by 1.77%.

China stock market declined as weaker than expected manufacturing data impacted investors sentiment. Shanghai Composite is down by nearly 5.55% and Hang Seng is down by 1.64%. 

What Happened in the Stock Market Globally?

It was a holiday shortened week, and stock market across the globe witnessed lower investor participation.

• The Indian stock market started the year on a high. Nifty 50 reclaimed the 24,000 level and closed the week higher by 1.05%. In 2024, the index closed 8.75% higher, marking ninth consecutive year of positive gains 

• The US manufacturing PMI jumped to a nine-month high of 49.3 in December 2024, the best reading since March 2024 and an increase from 48.4 in November. Manufacturing makes for 10.3% of the economy.

• The UK house prices rose most in December, since 2022, according to the Nationwide Building Society. Its house price index rose 0.7% in December from November, exceeding a forecast for a 0.1% increase and on a y-oy basis, the house price index increased 4.7%.

• Japan Manufacturing activity contracted for a sixth straight month in a row December. The manufacturing PMI reading was 49.6. A level below 50 shows contraction.

• China’s factory activity increased in December, although at a slower-than-expected pace. The Caixin/S&P Global manufacturing PMI nudged down to 50.5 in December from 51.5 the previous month.

Key Economic Events to Watch in Global Markets in the Upcoming Week

• On January 6th, the US will release its December 2024 Services PMI and is expected to rise to 58.5 from 56.1.

• On January 7th, the Euro region will release its CPI (inflation) numbers for December 2024. It was 2.2% in the previous month. 

• On January 8th, Germany will release its November factory orders and retail sales data. Also, on this day, the US will release its crude oil inventories data that may affect the crude prices. 

• On January 8th, the Federal Open Market Committee (FOMC) will release its meeting minutes that may impact market moves. 

• On January 10th, the US will release its non-farm payroll data and unemployment rate for the month of December 2024.

The global market started 2025 with a positive note, but the changing global economic forces will continue to impact investor sentiment. As markets navigate these challenges, next set of key economic data, central bank commentary, corporate earnings growth will be closely monitored for cues about the way forward. As usual, the market is expected to remain volatile in 2025 investors need to make strategic adjustments on a constant basis.

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