Traders work at the New York Stock Exchange on January 15, 2025 in New York.
David Dee Delgado | Getty Images
This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open informs investors about 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 below estimates
The US consumer price index rose on a seasonally adjusted basis 0.4% per month in December, putting the 12-month inflation rate at 2.9%, the US Bureau of Labor Statistics reported Wednesday. Core inflation, which excludes food and energy prices, rose 0.2% month-on-month and 3.2% year-on-year. The annual reading decreased by 0.1 percentage point compared to November. Both core readings were also 0.1 percentage points below expectations.
Ceasefire agreement between Israel and Hamas
Israel and Hamas on Wednesday reached an agreement on a ceasefire and the release of the hostages finish a 15-month war in the Gaza Strip. Israel’s security cabinet still has to vote on the agreement before it can be implemented. If approved, the first phase of the agreement will include a complete ceasefire and the withdrawal of Israeli forces from the populated areas of the Gaza enclave, US President Joe Biden said.
Markets are enjoying their best day in months
US stocks popped up on wednesday for their best day since November, on the back of lower-than-expected inflation readings and Reduction of treasury yields. Asia-Pacific markets followed the growth of Wall Street on Thursday. South Korea Kospi index advanced more than 1% after the Bank of Korea unexpectedly kept its reference rate unchanged at 3%. BOK also warned that it is “highly likely” that the country’s gross domestic product will miss forecasts for 2024 and 2025.
TSMC records a record year in sales
Shares listed in Taiwan A Taiwanese semiconductor company jumped about 3.8% after the company’s report fourth quarter profit and revenue that beat LSEG consensus estimates. Company released its December revenue last week, bringing its annual total to NT$2.9 trillion ($88 billion) — the biggest annual sales since the company went public in 1994.
Big banks beat earnings estimates
JPMorgan Chase and Goldman Sachs easily beat Wall Street estimates for both fourth-quarter profit and revenue. JPMorgan executives said the bank would be increase in share buybacks even as CEO Jamie Dimon called the stock expensive in May. Separately, Goldman CEO David Solomon said this at the bank’s post-earnings event IPO activity is “pick up” because of “an improved business environment.”
[PRO] Who could buy Ubisoft?
Ubisoft appointed advisors January 9 to reconsider his business direction. This has fueled speculation as to who could be a possible buyer. CNBC’s Ryan Browne spoke with industry analysts to find out who it might be a likely candidate to take over Ubisoft if the French gaming publisher is put up for sale.
Conclusion
Finally, some good news for the bulls, after a poor start to the year that saw markets post weekly losses on persistent inflation concerns.
Top of the page: Inflation in the US was lower than expected in December. To be sure, headline inflation for the month was 0.1 percentage point higher than the Dow Jones consensus estimate.
But the U.S. central bank pays more attention to core inflation because it strips out volatile swings in energy and food prices, giving a more accurate reflection of price changes in the economy. And core inflation, on a monthly and annual basis, was lower than expected.
Indeed, like CNBC’s Jeff Cox recorded“Much of the increase in the CPI came from a 2.6% increase in energy prices in the month, which was fueled by a 4.4% increase in gasoline prices. This was responsible for about 40% of the increase in the index, according to the BLS.”
“Today’s CPI number removes additional rate hikes, which some market participants have started to price in prematurely,” said John Kerschner, head of US securitized products and portfolio manager at Janus Henderson Investors.
The US 10-year bond yield it fell sharply to now stand at 4.655%, compared to last year’s close of 4.774%, as traders eased their interest rate expectations.
This gave stocks some breathing space. The S&P 500 jumped 1.83%, the Dow Jones Industrial Average rose 1.65% and Nasdaq Composite jumped 2.45 percent. It was the best day for all three major averages since November 6.
Upbeat bank earnings reports also added to the cheer. Their financial performance often serves as a predictor of the general direction of the economy: Banks expand when businesses and consumers engage in more financial activity, which in turn helps the economy grow.
For investors, the stars aligned on Wednesday. But just as the sky keeps moving, instability, in the form of the new American administration and politics, remains.
— CNBC’s Jeff Cox, Hakyung Kim and Lisa Kailai Han contributed to this report.
