Market Recap • Week 2 2025

Market recap

Highlights from the week of Jan 6 - 12, 2025

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Equities

• 🇺🇸 The S&P 500 fell 1.94% for the week after stronger-than-expected economic data raised concerns about inflation and higher rates in the US. The index closed yesterday at its lowest level since November 5 although it is still just 4.5% off of its record high set in early December. The Nasdaq Composite fell 2.34%.
• 🇪🇺 STOXX 600 rose 0.65% despite small inflation upticks in Germany and the eurozone at large.
• 🇫🇷 The French CAC 40 outperformed most other markets with a 2.04% gain.
• 🇩🇪 The DAX wasn’t far behind though, jumping 1.55% for the week.
• 🇬🇧 FTSE 100 eked out a gain of 0.3%.
• 🇨🇳 Hang Seng continued its struggles with a 3.52% decline for the week, now down 18% from the peak in October. The CSI 300 held up a lot better but still ended the week 1.13% lower.
• 🇮🇳 India’s Nifty 50 lost 2.39% and made its lowest weekly close since June last year. The index is down 11% from its all-time high in September.
• 🇯🇵 Nikkei 225 fell 1.77% after a pretty volatile week. The Japanese market is still searching for direction and is currently unchanged from 10 months ago.

Currencies & Commodities

• The DXY gained another 0.66% on the back of more economic data showing continued strength in the US economy.
• USD.GBP rallied 1.74% to 0.819, its highest level since November 2023.
• USD.CNH eked out a small gain after temporarily losing some strength against the Chinese yuan earlier in the week.
• Gold jumped 1.95% on the back of increased inflation fears, once again approaching $2,700.
• The crypto market is down 5.4% as of Sunday afternoon (CET) in what was a risk-off week across markets. Bitcoin is holding up well, down less than 4% at $94,500. Ethereum and Solana are both down double digits. Ripple is showing significant strength with a 4.6% gain though.

Other

• The VIX spiked 21.14% to 19.54 amidst a slew of macro data, its highest weekly close since early November last year.
• The 10-year US treasury yield rallied 3.5% to 4.763%, the highest level since its peak at 5% in the fall of 2023.

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