The past week’s economic indicators and corporate earnings provided valuable insights into global market trends. Key data releases included employment figures, inflation reports, and manufacturing activity from major economies such as the UK, Canada, and the US. Central bank decisions, such as the Bank of Japan’s rate hike, also influenced currency movements. Meanwhile, corporate earnings from industry giants like Netflix, Johnson & Johnson, and GE Aerospace exceeded expectations, driving market sentiment. Commodity prices showed mixed trends, while major stock indices posted gains, reflecting investor optimism amid evolving economic conditions.
Major Economic Indicators and Events in Review
Tuesday, January 21
09:00 am – UK: Claimant Count Change (GBP)
In December 2024, the number of individuals filing for unemployment benefits in the UK increased by 0.7 thousand, reaching a total of 1.744 million. This follows a revised decline of 25.1 thousand in the previous month and came in significantly lower than the anticipated rise of 10.3 thousand projected by market analysts.
The GBPUSD exchange rate edged up by 0.09% compared to the prior trading session.
15:30 – Canada: CPI m/m (CAD)
In December, the CPI rose 1.8% year-over-year, down from 1.9% in November, with restaurant food and alcohol driving the slowdown. The monthly CPI fell by 0.4% but increased by 0.2% when seasonally adjusted.
The USDCAD exchange rate increased by 0.19%.
23:45 – New Zealand: CPI q/q (NZD)
New Zealand’s CPI rose 2.2% in the December 2024 quarter compared to the same period in 2023, maintaining the same annual increase recorded in the previous quarter, according to Stats NZ.
The EURUSD decreased by 0.06%.
Thursday, January 23
15:30 – Canada: Retail Sales m/m (CAD)
Retail sales remained steady, with declines in six of nine subsectors, led by a 1.6% drop at food and beverage retailers. However, increases at motor vehicle and parts dealers (+2.0%) and gasoline stations (+0.7%) offset these losses. Core retail sales, excluding fuel and vehicle-related sectors, fell by 1.0%.
The USDCAD exchange rate decreased by 0.08%.
Friday, January 24
Tentative – Japan: BOJ Policy Rate (JPY)
The Bank of Japan raised its policy rate by 25 basis points to 0.5% on January 24, 2025, the highest level since 2008. The decision, widely expected by economists, was made with an 8-1 vote, with one dissenting member advocating for a delay until firms’ earnings improve.
The USDJPY exchange rate decreased by 0.055%.
10:15 am – France: French Flash Manufacturing PMI (EUR)
France’s private sector contracted for the fifth straight month in January, but at a slower pace, with the Composite PMI rising to 48.3, a four-month high. Manufacturing output saw its smallest decline in seven months, while services weakened further. Weak demand persisted, though some firms noted improved market conditions. Despite rising input costs, businesses cut prices for the first time in nearly four years. Employment fell at the fastest rate since 2020, and business confidence dropped to a neutral outlook amid economic uncertainty.
The EURUSD increased by 0.73%.
10:30 am – Germany: German Flash Manufacturing PMI (EUR)
Germany’s business activity stabilized in January, with the Composite PMI rising to 50.1, a seven-month high. Services expanded modestly while manufacturing contracted at a slower pace. Weak demand persisted, but business confidence improved, especially in manufacturing. Rising costs drove the fastest price inflation in 11 months, and job cuts continued, though at a slower rate.
The EURJPY decreased by 0.01%.
11:30 am – UK: Flash Manufacturing PMI (GBP)
UK business activity grew modestly in January, with the PMI rising to 50.9, a three-month high. Services expanded slightly while manufacturing contracted at a slower pace. New orders declined, job cuts persisted, and cost pressures hit a 20-month high, driving the fastest price increases in 18 months. Business confidence continued to weaken amid economic uncertainty.
The GBPUSD rose by 1.04%.
16:45 – USA: Flash Manufacturing PMI (USD)
US business growth slowed in January, with the PMI dropping to 52.4 as services expanded more slowly and manufacturing saw slight gains. Inflation rose to a four-month high, but hiring surged on optimism about the new administration.
The US Dollar Index declined by 0.6% compared to the previous day.
Commodities
- Crude Oil
Crude oil prices decreased by 3.62% over the past week
- Brent Oil
Brent was down 2.81% compared to the previous week
- Gold
The precious metal Gold (XAUUSD) concluded the week on Friday with a 2.51% weekly rise
- Silver
XAGUSD increased by 0.64% from the last week
Stock Market
- S&P 500 increased by 1.71%
- DJIA was up by 2.12%
- NASDAQ 100 was up by 1.57
Top Gainers
- Dogwood Therapeutics, Inc. (DWTX) 509.63%
- Allurion Technologies Inc. (ALUR) 196.59%
- Nvni Group Limited (NVNI) 180.26%
Top Losers
- Golden Star Acquisition Corporation (GODN) -63.78%
- Next Technology Holding Inc. (NXTT) -53.95%
- Singularity Future Technology Ltd. (SGLY) -38.26%
Company Earnings (January 20 – 24)
Monday, January 20: NFLX (Netflix, Inc.)
Wednesday, January 22: JNJ (Johnson & Johnson)
Thursday, January 23: GE (GE Aerospace)
Friday, January 24: AXP (American Express Company)
Netflix reported quarterly earnings of $4.27 per share, exceeding expectations by $0.07. Revenue reached $10.25 billion, up 16% year-over-year and above estimates. The company achieved a net margin of 20.7% and a return on equity of 35.86%. Earnings more than doubled compared to the same quarter last year.
NFLX shares increased by 13.92% from the previous week.
Johnson & Johnson reported Q4 2024 earnings of $2.04 per share, beating estimates by $0.05. Revenue rose 5.3% year-over-year to $22.52 billion but fell short of expectations. The company has a trailing EPS of $6.65 and a P/E ratio of 22.07. Earnings are projected to grow 5.21% next year, reaching $11.11 per share.
JNJ shares decreased by 0.14% from the previous week.
GE Aerospace reported strong Q4 earnings, with adjusted EPS of $1.32, up 103% year-over-year, and revenue rising 16% to $9.9 billion, surpassing expectations. Orders surged 46% to $15.5 billion, led by a 50% increase in commercial engines and services. For 2025, the company expects EPS of $5.10-$5.45 and low double-digit revenue growth. GE also announced a 30% dividend hike and a $7 billion share buyback program.
GE shares experienced an increase of 7.60%.
American Express reported Q4 earnings of $3.04 per share, beating estimates by $0.04. The company posted a return on equity of 32.46% and a net margin of 15.32%. It updated its FY 2025 EPS guidance to $15.00-$15.50. The stock traded lower despite the earnings beat, with a market cap of $226.04 billion. American Express also declared a quarterly dividend of $0.70 per share, yielding 0.87%.
AXP shares were up 2.81%.
Conclusion
The past week provided a comprehensive snapshot of global economic health, with key indicators revealing mixed trends across major economies. While corporate earnings showed resilience, particularly in the tech and aerospace sectors, economic data highlighted ongoing challenges such as inflationary pressures and employment concerns. Market performance reflected cautious optimism, with gains in major indices and commodities signaling investor confidence despite persistent uncertainties.