Summary
European indices ticked higher on Tuesday morning amid a slew of data releases, while the FTSE 100 (^FTSE) was flat. US stocks opened in the green before heading lower after new data showed a higher rate of job openings in November.
European Indices and Data Releases
The European markets were relatively stable as investors digested various economic indicators and data points released on Tuesday morning. The pan-European STOXX 600 (^STOXX) rose 0.4% following the Eurozone inflation reading, which matched economist expectations at 2.4%. This figure marks the third time inflation has increased in three months.
The UK's Office for National Statistics reported that grocery price inflation hit 3.7% in December, according to Kantar data. Meanwhile, the British Retail Consortium (BRC) stated that the "Golden Quarter" had failed to deliver growth for retailers, with food sales increasing by only 1.7% year-on-year in December.
US Stocks and Job Openings
US stocks experienced a mixed session on Monday ahead of the release of key monthly jobs data later this week. The S&P 500 (^GSPC) was up about 0.5%, while the Dow Jones Industrial Average (^DJI) fell around 0.1%. The tech-heavy Nasdaq Composite (^IXIC) led the gains, adding approximately 1.2% after a tech-led rally on Friday.
Chip stocks rallied following a record revenue and strong sales forecast from Nvidia (NVDA) server partner Foxconn (2317.TW, HNHPF), boosting optimism for AI-fueled growth. Shares of Nvidia climbed over 3%, closing at an all-time high, while peer Micron Technology (MU) rose more than 10%.
Construction and House Prices
The UK construction industry faced a slowdown in December, with the rate of new work rising at its slowest pace since June 2024. The worst-performing sector was house builders, according to S&P Global's PMI report.
In related news, average UK house prices finished 2024 up 3.3% over the year, standing at £297,166. However, prices fell back slightly in December by -0.2%, following five consecutive monthly increases.
Market Expectations and Analysis
Anthony Codling, managing director in equity research at RBC Capital Markets, predicted a bounceback in house prices in 2025 due to expected wage growth and lower mortgage rates. Meanwhile, Anthony Codling also stated that the fall in December ended a run of five consecutive monthly increases.
The UK housing market's performance has been influenced by factors such as impeding changes to Stamp Duty thresholds, which have motivated prospective first-time buyers to bring their home-buying plans forward.
Global Trade and Politics
A new government could be beneficial for the Canadian dollar, with prime minister Justin Trudeau's resignation setting the country up for a fresh trade relationship with the US during Donald Trump's second administration.