Traders work on the floor of the New York Stock Exchange on January 15, 2025 in New York City.
David de Delgado | Getty Images
This report is from today's CNBC Daily Open, the international markets newsletter. CNBC Daily Open keeps investors informed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
Core CPI is below estimates
The US Consumer Price Index rose at a seasonally adjusted rate 0.4% per month In December, the 12-month inflation rate was put at 2.9%, according to the US Bureau of Labor Statistics I mentioned Wednesday. Core inflation, which excludes food and energy prices, rose by 0.2% on a monthly basis and 3.2% on a yearly basis. The annual reading fell 0.1 percentage points from November. Both core readings were also 0.1 percentage point below expectations.
Ceasefire agreement between Israel and Hamas
Israel and Hamas on Wednesday Reaching a ceasefire agreement and releasing the hostages To finish a 15-month war In the Gaza Strip. The Israeli security cabinet must still vote on the agreement before it is implemented. US President Joe Biden said that the first phase of the agreement, if approved, would include a complete ceasefire and the withdrawal of Israeli forces from populated areas in the Gaza Strip.
Markets are having their best day in months
US stocks Popped in on Wednesday On their best day since November, on the back of a cooler-than-expected inflation reading and Treasury yields decline. Asia Pacific markets Wall Street followed higher on Thursday. South Korea Cospi index It advanced more than 1% after the Bank of Korea unexpectedly maintained its expectations Interest rate unchanged at 3%. The Bank of Korea also warned that the country's GDP is “very likely” to miss expectations for 2024 and 2025.
TSMC is experiencing a record year in sales
Stocks listed in Taiwan Taiwan Semiconductor Manufacturing Company It jumped about 3.8% after the company's announcement Q4 earnings and revenue beat LSEG consensus estimates. Company Released December revenue hit last week, bringing its annual total to NT$2.9 trillion ($88 billion) — the highest annual sales since the company went public in 1994.
Big banks blew past earnings estimates
JPMorgan Chase and Goldman Sachs It easily beat Wall Street estimates for fourth-quarter earnings and revenue. JPMorgan executives said the bank would be Enhancing share buybacks Even when CEO Jamie Dimon in May called the stock too expensive. Separately, Goldman CEO David Solomon said at an event after the bank's earnings announcement IPO activity He “will catch” because “an Improving the business environment“.
(Pro) Who can buy Ubisoft?
Ubisoft Appointed advisors on January 9 to review its business direction. This has raised speculation about the identity of the potential buyer. CNBC's Ryan Braun spoke to industry analysts to find out who it might be Potential candidate to take over Ubisoft If the French game publisher puts itself up for sale.
Bottom line
Finally, there is a string of good news for the bulls, after a poor start to the year during which markets recorded weekly losses due to persistent inflation fears.
Top of page: US inflation in December was lower than expected. Sure enough, this month's headline inflation rate was 0.1 percentage point higher than the Dow Jones estimate.
But the US Federal Reserve pays more attention to core inflation because it excludes volatile fluctuations in energy and food prices, which gives a more accurate reflection of price changes in the economy. Core inflation, both on a monthly and annual basis, was cooler than expected.
In fact, as CNBC's Jeff Cox said male“Much of the upward movement in the CPI came from a 2.6% increase in energy prices for the month, driven by a 4.4% rise in gasoline. That was responsible for about 40% of the index's gain, according to the BLS.”
“Today’s CPI number eliminates additional interest rate increases, which some market participants have begun to estimate prematurely,” said John Kirshner, head of U.S. securitized products and portfolio manager at Janus Henderson Investors.
the 10-year US Treasury bond yield The interest rate fell sharply, now at 4.655%, compared to last Friday's close of 4.774%, as traders tempered their interest rate expectations.
This gave stocks room to breathe. the Standard & Poor's 500 It jumped by 1.83% Dow Jones Industrial Average It rose by 1.65% Nasdaq Composite It rose by 2.45%. This was the best day for all three major averages since November 6th.
Upbeat earnings reports from banks also added to the cheer. Their financial results are often a forecast of the overall direction of the economy: banks' top lines expand when businesses and consumers engage in more financial activity, which in turn helps the economy grow.
For investors, the stars were aligned on Wednesday. But while the sky is constantly changing, fluctuations remain, in the form of a new American administration and policies to come.
— CNBC's Jeff Cox, Hakyung Kim and Lisa Kailai Han contributed to this report.
