Last week featured a mix of significant economic data releases and corporate earnings announcements. Key highlights included inflation updates from the U.S. and UK, labor market data from Australia, and retail sales performance across major economies. In the corporate sphere, major banks like Citigroup, JPMorgan Chase, and Morgan Stanley reported robust Q4 earnings, outpacing expectations and driving notable market reactions. Commodity and stock markets also saw significant movement, with crude oil and equities posting gains while precious metals exhibited mixed results.
Major Economic Indicators and Events in Review
Tuesday, January 14
15:30 – USA: PPI m/m (USD)
In December 2024, the PPI rose 0.2%, driven by a 0.6% increase in goods, mainly from higher energy costs, while services remained flat. Annual PPI climbed 3.3%, with notable price hikes in gasoline and natural gas. Businesses showed cautious optimism for 2025 amid rising costs.
The EURUSD exchange rate edged up by 0.83% compared to the prior trading session.
Wednesday, January 15
09:00 am – UK: CPI y/y (GBP)
In December 2024, UK inflation held steady, with CPIH at 3.5% and CPI easing to 2.5%. Housing costs rose sharply, while transport prices increased due to higher fuel costs. Declines in restaurant, hotel, and tobacco prices offset some gains. Core CPIH fell to 4.2%, signaling easing underlying pressures.
The GBPUSD exchange rate increased by 0.31%.
15:30 – USA: CPI m/m (USD)
In December 2024, the U.S. Consumer Price Index (CPI) rose 0.4% month-over-month and 2.9% year-over-year, driven by higher energy and food prices. Core CPI, excluding food and energy, increased 0.2% for the month and 3.2% annually. Energy costs surged 2.6%, with gasoline up 4.4%, while food prices rose 0.3%. Shelter and used car prices contributed to inflation, offset by declines in personal care and communication indexes.
The EURUSD exchange rate declined by 0.74%.
Thursday, January 16
02:30 am – Australia: Employment Change (AUD)
In December 2024, Australia’s labor market remained steady, with the unemployment rate at 4.0% and the participation rate holding at 67.1%. Employment increased to 14.57 million, with monthly hours worked rising to 1.975 billion. Underemployment improved to 6.0%, while the employment-to-population ratio held at 64.4%. Part-time employment rose, offsetting a decline in full-time roles.
The AUDUSD increased by 0.16%.
09:00 am – UK: GDP m/m (GBP)
UK GDP grew by 0.1% in November 2024, with services driving the growth. Over the three months to November, GDP stagnated, as production fell 0.7% and construction rose 0.2%. Manufacturing declines impacted production, while construction saw slight gains.
The GBPUSD declined by 0.1%.
15:30 – USA: Retail Sales m/m (USD)
U.S. retail and food services sales rose 0.4% in December 2024, reaching $729.2 billion, and were up 3.9% year-over-year. Retail trade sales grew 0.6% month-over-month, with motor vehicle and parts dealers (+8.4%) and nonstore retailers (+6.0%) driving annual gains. Total 2024 sales increased by 3.0% from 2023.
The EURUSD increased by 0.05%.
15:30 – USA: Unemployment Claims (USD)
For the week ending January 11, 2025, U.S. initial unemployment claims rose to 217,000, up 14,000 from the prior week. The 4-week moving average decreased slightly to 212,750. Insured unemployment remained steady at 1.2%. Unadjusted claims rose significantly by 14.7% to 351,885, driven by layoffs in industries such as manufacturing and construction, while states like Michigan and Iowa reported declines in layoffs.
The USDJPY exchange rate declined by 0.8%.
Friday, January 17
09:00 am – UK: Retail Sales m/m (GBP)
Retail sales volumes in Great Britain fell by 0.3% in December 2024 after a 0.1% rise in November. Supermarket sales dropped, while non-food stores, particularly clothing retailers, rebounded. Quarterly sales volumes fell 0.8% in Q4 compared to Q3 but rose 1.9% year-over-year. Online sales increased by 1.5% in December, boosting the proportion of online sales to 27.0%. Annual retail sales volumes grew by 0.7% in 2024, the first increase since 2021.
The GBPUSD declined by 0.5%.
Commodities
- Crude Oil
Crude oil prices increased by 1.03% over the past week
- Brent Oil
Brent was up 1.37% compared to the previous week
- Gold
The precious metal Gold (XAUUSD) concluded the week on Friday with a 0.48% weekly rise
- Silver
XAGUSD decreased by 0.25% from the last week
Stock Market
- S&P 500 increased by 3.01%
- DJIA was up by 3.59%
- NASDAQ 100 was up by 2.94%
Top Gainers
- Great Elm Group, Inc. (GEC) 362.08%
- WANG & LEE GROUP, Inc. (WLGS) 242.67%
- Moog Inc. (MOG.B) 113.90%
Top Losers
- Meiwu Technology Company Limited (WNW) -88.80%
- PTL Limited (PTLE) -75.81%
- SRIVARU Holding Limited (SVMH) -72.33%
Company Earnings (January 13 – 17)
Wednesday, January 15: C (Citigroup Inc)
Wednesday, January 15: JPM (JPMorgan Chase & Co)
Wednesday, January 15: WFC (Wells Fargo & Company)
Thursday, January 16: BAC (Bank of America Corp)
Thursday, January 16: MS (Morgan Stanley)
Citigroup reported Q4 2024 earnings with an EPS of $1.34, surpassing estimates by $0.12. Revenue rose 12.3% year-over-year to $19.58 billion, beating expectations. With a trailing EPS of $5.95 and a P/E ratio of 23.20, earnings are projected to grow 23.81% in 2025, from $5.88 to $7.28 per share.
C shares increased by 12.03% from the previous week.
JPMorgan Chase & Co. reported Q4 2024 earnings on January 15, 2025, with an EPS of $4.81, surpassing the $4.03 consensus by $0.78. Revenue grew 10.9% year-over-year to $42.77 billion, exceeding the $41.90 billion forecast. The bank has a trailing EPS of $19.74 and a P/E ratio of 14.44, with earnings projected to decline by 2.81% in 2025.
JPM shares increased by 8.15% from the previous week.
Wells Fargo & Company reported Q4 2024 earnings on January 15, 2025, with an EPS of $1.43, beating the $1.34 consensus by $0.09. Revenue declined 0.5% year-over-year to $20.38 billion, missing the $20.58 billion estimate. The bank has a trailing EPS of $4.81, a P/E ratio of 16.05, and projected earnings growth of 2.20% in 2025.
WFC shares experienced an increase of 10.18%.
Bank of America reported Q4 2024 earnings on January 16, 2025, with an EPS of $0.82, beating the $0.77 consensus by $0.05. Quarterly revenue rose 15% year-over-year to $25.30 billion, exceeding expectations of $25.12 billion.
BAC shares increased by 3.15% from the previous week.
Morgan Stanley reported Q4 earnings of $2.22 per share, surpassing estimates of $1.65 by 34.55%. This marks a significant increase from $1.13 per share in the prior year. In the previous quarter, the bank delivered an earnings surprise of 19.75% with $1.88 per share versus the expected $1.57.
MS shares increased by 11.68% compared to the previous week.
Conclusion
The dynamic interplay of economic indicators and corporate performances showcased resilience and challenges across global markets. Significant data releases on inflation, employment, and retail sales, combined with robust earnings from major financial institutions, underscored cautious optimism for the year ahead. Market movements in commodities, equities, and exchange rates reflected these developments, shaping a compelling financial outlook.