Charles-Henry Monchau

Chief Investment Officer


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WEEKLY SUMMARY: Santa rally stalls as mega-caps dump, bond yields jump

Major US stock indexes produced moderate gains in the final full week of the year. Friday saw a puke in stocks as year-end pension rebalancing hit the market. US macro surprises were negative on the week; , The Conference Board reported that its index of U.S. consumer confidence fell in December to 104.7 from 112.8 in November. For the fourth time in the past six months, new orders for durable goods declined, falling 1.1% versus consensus expectations for a 0.2% rise. New home sales in November also came in slightly below consensus expectations; the Census Bureau reported a seasonally adjusted annual pace of 664,000 compared with expectations for 670,000, Meanwhile, the Labor Department reported on Thursday that applications for unemployment benefits declined slightly to 219,000 for the week ended December 21, the lowest reading since mid-November. U.S. Treasury yields were generally higher heading into Friday amid light holiday trading, with the yield on the benchmark 10-year note touching an intraday high of 4.641% on Thursday. Stocks in Europe were higher over the abbreviated holiday trading week, with the STOXX 600 Index gaining 0.99% in local currency terms. Japan’s stock markets rose over the week, with the Nikkei 225 Index gaining 4.08% and the broader TOPIX Index up 3.69%. The dollar rallied on the week. Gold ended the week unchanged, having rallied up to pre-Powell-plunge levels and fading back on Friday. Bitcoin closed the week below $100k.

Have a great week-end.
Wishing you all the best for 2025!
Charles for the team 
 
 
 




 

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