Market Recap • Week 3 2025

Market recap

Highlights from the week of Jan 13 - 19, 2025

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Equities

• ‍🇺🇸 S&P 500 rallied 2.91% on the back of cooler-than-expected inflation data for December. It was the best week for the index since the election in early November.‍
• 🇺🇸 Nasdaq Composite actually lagged the S&P a bit, gaining 2.45% for the week. It got dragged down by underperformance in many of the largest tech stocks, including a 2.9% drop in Apple.‍
• 🇪🇺 STOXX 600 got a boost from the US inflation data as well and jumped 2.37% for the week.‍
• 🇬🇧 FTSE 100 outperformed the US and soared 3.11%, breaking out from a 10-month consolidation to a new record high. See attached chart.‍
• 🇩🇪 DAX reached a new record high as well, gaining 3.41% for the week.‍
• 🇨🇳 Hang Seng rose 2.73% after positive import and export data early in the week. The CSI 300 gained 2.14% for the week.‍
• 🇮🇳 Nifty 50 fell another 0.97% to its lowest level since June.‍
• 🇯🇵 Nikkei 225 fell 1.89% in continued consolidation.
• 🇩🇰 The Danish C25 index has earned an honorable mention this week by being absolutely horrific once again, falling 2.08% on the back of a 9% decline in Novo Nordisk.

Currencies & Commodities

• The DXY ended the week 0.21% lower at 109.405 after some volatility, breaking a 6-week win streak.
• USD.EUR declined 0.25% to 0.9734 after topping 0.98 intraweek and getting within 2% of parity.
• USD.GBP actually rose 0.33% for the week, now sitting at 0.8217 and another 12-month high.
• USD.JPY weakened 0.91% to 156.259, backing off after approaching the July peak at 162 where the Bank of Japan decided to intervene.
• USD.CNH fell 0.3% after bumping up against the level where it peaked in 2022 and 2023.
• Gold gained 0.49% for the week and closed above $2,700 for the first time since November.
• The crypto market had rallied 11% for the week as of Friday evening (CET). Bitcoin is firmly back above $100k, currently trading at $104.500 after hitting $89,000 on Monday. Ripple (XRP) is once again leading the majors with a 30% gain, followed by Solana at 16%.

Other

• The VIX spiked early on Monday but then declined through the week, ending 18.3% lower at 15.97 as volatility plummets.
• The 10-year US treasury yield dropped 2.94% to 4.623% after topping 4.8% earlier in the week. The 2-year declined 2.28%. More on that in my news recap dropping this weekend.