US stocks were higher in the first session of 2024, rebounding from four consecutive sessions of losses and building on the sharp gains from the previous year as markets expect the corporate sector to continue delivering strong returns in a higher interest rate environment this year. The S&P 500, the Dow, and the Nasdaq 100 were all around 0.8% higher. Fresh data showed that initial unemployment claims unexpectedly fell to their lowest in eight months and continuing claims dropped sharply from three-year highs, adding to the view that the US economy is due to remain strong in the near future. The sharpest gains were concentrated among tech sector companies, which were the backbone of the US equity rally during 2024. Nvidia shares added 1.5% after soaring by 180% last year, consistent with surges for other chip manufacturers, and reflecting investors’ speculative bets over the exponential rise in AI services in coming years.

Initial jobless claims in the US slumped by 9,000 from the previous week to 211,000 in the last week of 2024, contrasting sharply with the expected increase to 222,000, to mark the lowest amount of initial claims in eight months. In the previous week, outstanding unemployment claims fell by 52,000 to 1,844,000, below expectations of 1,890,000. The results aligned with the view that the US labor market remains tight in historical standards, adding leeway for the Federal Reserve to leave interest rates at higher levels should inflation continue to refrain from slowing at their desired pace.

WTI crude oil futures climbed to $73.5 per barrel on Thursday, reaching their highest level since October, fueled by optimism about oil demand and a report showing shrinking US crude stockpiles. Optimism grew following Chinese President Xi Jinping's New Year address, in which he expressed confidence in China’s economic recovery despite global uncertainties. Additionally, China’s manufacturing sector continued its slight expansion for the third consecutive month, further lifting expectations of strong oil demand. The price increase was also supported by a report from the American Petroleum Institute, which showed US crude inventories dropped by 1.4 million barrels last week, continuing a trend of declining stockpiles. If confirmed by official data, this would be the sixth consecutive week of inventory reductions.

Bank lending to households in the Eurozone rose by 0.9% year-on-year to €6.918 trillion in November 2024, accelerating from a 0.8% increase in the previous month, as expected. It was the fastest pace of credit growth since August 2023. Meanwhile, lending to companies rose by 1% to €5.162 trillion, down from a 1.2% advance in October. Overall private sector credit growth, encompassing both households and non-financial corporations, decreased to 1.5% in November from 1.7% in October.

The Caixin China General Manufacturing PMI edged down to 50.5 in December 2024 from November's 5-month high of 51.5, missing market estimates of 51.7 while marking the third straight month of growth in factory activity. Both output and new orders expanded at slower rates while foreign orders shrank after increasing at the fastest pace for seven months in the prior month. Also, employment dropped for the fourth month, resulting in the third month of backlog accumulation. Meanwhile, buying levels rose for the third month, with some firms aiming to build safety stocks. Vendor performance improved for the first time since May, albeit only marginally. On the price front, selling prices declined for the first time since September. Although the rate of decline was modest, this contrasted with another increase in input prices. Finally, confidence weakened, with the reading hitting a three-month low, due to concerns about growth and trade outlooks, particularly with the threat of US tariffs.

The HCOB Italy Manufacturing PMI rose to 46.2 in December 2024, up from 44.5 in November, and above forecasts of 44.8. Still, the reading indicates a solid decline in the health of the manufacturing sector, driven by continued reductions in output and new orders, particularly in key sectors like automotives, and weak export demand. New export orders fell for the twenty-first consecutive month. Although cost pressures eased, input prices rose for the first time in three months due to higher material and transportation costs. Firms responded by reducing employment and input buying, while destocking activity continued at one of the fastest rates on record. Despite these challenges, manufacturers were more optimistic about the year ahead, with expectations for a recovery in demand and international conditions, leading to the highest confidence level since August 2024.