Global Market News

Global Equities Gain

Global equities made gains his week as inflation fears eased. The Dow Jones and the S&P 500 rose 3.69% and 2.91%, respectively, and the Nasdaq increased 2.45%. The US 10-year Treasury note dropped several basis points to close Friday at 4.62%. The price of a barrel of West Texas Intermediate crude oil jumped to $77.37. Volatility, as measured by the CBOE Volatility Index, dropped significantly to 15.97.

US Inflation Data Eases Investors

Last Friday’s strong US employment report had investors worried about upcoming inflation data, but the actual figures were not as bad as expected. In December, consumer prices rose by 0.4%, mainly due to higher gasoline prices, while the core rate increased by 0.2%. Year-over-year, the Consumer Price Index rose to 2.9%, coming in lower than expectations. Meanwhile, the United Kingdom also reported cooler inflation readings.

International Developments

Gaza Ceasefire and Hostage Deal Gains Momentum

Israel’s security cabinet approved a six-week ceasefire deal with Hamas, brokered by Qatar and the US, following 15 months of intense conflict. The agreement includes the staggered release of 33 hostages by Hamas and hundreds of Palestinian detainees by Israel, alongside increased humanitarian aid and partial Israeli military withdrawal. Israeli Prime Minister Netanyahu’s office supports the deal despite opposition from far-right ministers, while President Isaac Herzog and Secretary of State Antony Blinken have expressed optimism about its implementation. The conflict, which began with Hamas’s October 7, 2023 attack on Israel, has left over 46,000 Palestinians and 1,200 Israelis dead, highlighting the war’s devastating toll.

Greenland Stands Firm on Autonomy Amid Trump’s Interest

On January 13th, Greenland’s Prime Minister Múte Egede responded to President-elect Donald Trump’s renewed interest in purchasing the territory, firmly stating Greenland is “not for sale” but open to strengthening ties with the US on defense and natural resources. With only 56,000 residents and vast mineral resources exposed by melting Arctic ice, Greenland has drawn attention from global powers, including the US, Russia, and China. While the US maintains a military presence at the Pituffik Space Base, Greenland continues its push for independence from Denmark, which still oversees its defense and foreign affairs. The debate intensified after Donald Trump Jr.’s surprise visit to Nuuk, underscoring the delicate balance between Greenland’s autonomy aspirations and strategic cooperation with the US.

South Korea Detains President Yoon Amid Martial Law Scandal

South Korea’s impeached President Yoon Suk Yeol was detained this week following a dramatic police raid involving 3,200 officers, marking the first time a sitting South Korean leader has been detained. The Constitutional Court is deliberating whether to uphold the December 14th parliamentary vote to impeach Yoon after his controversial martial law declaration on December 3rd, which lawmakers swiftly overturned. Facing insurrection charges, Yoon is being questioned under a 48-hour detainment order, while acting President Choi Sang-mok assumes leadership. Public opinion is split, with 64% supporting impeachment, though Yoon’s conservative party has seen a rebound in support.

US Social & Political Developments

Biden’s Farewell

On Thursday, President Joe Biden delivered his farewell address from the Oval Office, emphasizing the dangers of concentrated power among the ultra-wealthy and warning against an emerging “tech industrial complex.” Reflecting on his 50-year political career, Biden highlighted achievements such as COVID-19 recovery, infrastructure investment, and gun safety while urging reforms like campaign finance transparency and term limits for Supreme Court justices. Hours before his address, he announced a ceasefire in the Israel-Hamas conflict, capping his tenure with a significant diplomatic breakthrough. With his departure, Biden, at 82, leaves behind a nation grappling with challenges in truth, technology, and democracy.

Biden’s Executive Orders Signal Last-Minute Policy Push; Cuba Reversal Sparks Debate

In his final days in office, President Biden has issued sweeping executive orders targeting offshore drilling by banning new activities across 625 million acres of coastal waters, expediting AI development through federal site leasing, and enhancing cybersecurity measures, including stricter vendor regulations. The administration also reversed Cuba’s designation as a state sponsor of terrorism, leading to the release of 553 political prisoners under a deal brokered with Pope Francis and the Catholic Church. These moves, which follow Biden’s broader climate and digital security initiatives, face potential reversal under President-elect Trump, who has vowed to restore energy dominance and reassess Cuba’s status. Critics, including Florida lawmakers and Cuban-American communities, remain divided, emphasizing political and economic implications for US-Cuba relations amid Cuba’s worst economic crisis in decades.

Corporate/Sector News

US Sanctions and TurkStream Attack Rattle Global Energy Markets

The Biden administration’s implementation of its strictest oil sanctions on Russia last week, targeting major producers, insurers, and 183 tankers, caused significant market disruption and a rise in Brent oil prices to $80.73. Two days later, Ukraine attempted to sabotage the TurkStream pipeline, intensifying concerns about European energy supplies as sanctions on Russian gas loom ahead of the war’s third anniversary on February 24. These sanctions aim to reduce Russia’s oil revenues, which grew to $89.4 billion in 2024, while freight rates for alternative oil shipments surged, with Chinese and Indian refiners seeking new suppliers. Meanwhile, Europe faces a tightening gas market, risking storage shortfalls and price hikes, with LNG imports expected to rise by 10% in 2025 to fill the gap left by reduced Russian supply.

Blue Origin’s Leap into Orbital Spaceflight

On January 16th, Blue Origin, owned by Jeff Bezos, launched its first New Glenn rocket from Cape Canaveral Space Force Station, successfully achieving orbit 12.5 minutes after liftoff at 2:03 a.m. EST. Despite the booster missing its planned landing on the recovery ship Jacklyn, the mission, dubbed NG-1, marked a milestone in orbital-class reusable rocket development, with payload capability of up to 50 tons to low Earth orbit. The launch included testing the “Blue Ring Pathfinder,” a prototype logistics spacecraft for the US Defense Innovation Unit’s Orbital Logistics Program. This mission lays the groundwork for future commercial and national security launches, including supporting Amazon’s Kuiper broadband satellites and US Space Force missions.

Supreme Court Upholds TikTok Ban Ahead of Presidential Transition

The Supreme Court unanimously upheld a law requiring TikTok’s parent company, ByteDance, to divest its US operations within 270 days or face a ban, with the deadline set for January 19th. The decision, supported by the Biden administration, cites national security concerns over data collection and ties to China but leaves enforcement to President-elect Trump, who has expressed interest in negotiating a resolution. While TikTok warns of shutting down as early as Sunday, discussions continue about potential buyers, including billionaire Frank McCourt’s Project Liberty. The expedited case, resolved in under a month, reflects heightened urgency amid bipartisan concerns over foreign influence and data security.

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