Zurich Weekly News 02.01.2024

Weekly Investment News

As 2023 drew in to a close, most major indices were in positive territory following a holiday shortened week. As expected, trading volumes were subdued in what is traditionally a quiet week for markets. US stocks posted gains in what is now their 9^th straight week of positive returns. Throughout 2023 the technology-heavy Nasdaq saw the strongest performance returning over 50% in euro terms for the year. Wednesday saw the final US Treasury Auction of the year, which showed strong participation from investors. Yields dropped significantly as a result, however following this, the yield on government bonds rose gradually throughout the week due to suggestions of a moderate economic slowdown. The benchmark 10 Year US Treasury Yield finished the week at 3.94%, which remains to be far lower than what was observed throughout the second half of 2023 (bond yields move inversely to prices). In what is the first week back to work after the Christmas period for many, investors await further US economic data this week to gauge sentiment.

In Europe, optimism around the potential for lower interest rates continued to push markets higher. European equities remained in positive territory last week, although gains were marginal in a subdued period for trading. Friday saw Spain release preliminary December inflation figures, the first Eurozone economy to do so as investors await aggregate Eurozone preliminary inflation this Friday. Spain’s figures showed a slowdown in consumer price rises to from 3.2% to 3.1% in December. This came despite expectations of a 3.4% figure. Much of the decline in numbers has been attributed the fall in fuel prices. Inflation remains to be a key item of interest for many investors as central banks begin to signal that interest rate rises may come to an end.