- Last week, the Nasdaq 100 rose by 3.3%, while the DJIA slipped slightly by 0.6%. The SPX also gained 1%. The US added 227k jobs in November, slightly more than expected. Federal Reserve Governor Christopher Waller mentioned that despite signs of inflation progress slowing, he is likely to support a rate cut at the Fed's December meeting unless there are unexpected economic changes.
- The STOXX Europe 600 edged up by 2%. The European Central Bank (ECB) may be shifting its approach from relying heavily on past data. According to ECB chief economist Philip Lane in a Financial Times podcast, future policy decisions will focus on upcoming risks rather than past trends, especially once the ECB is confident inflation is heading toward its 2% target.
- The CSI gained 1.4%. Markets are anticipating that China's leaders will unveil additional measures to support the economy at the Central Economic Work Conference. Investors are eager for details on economic growth targets and potential stimulus strategies during the two-day event starting December 11. There is strong optimism that China will introduce further steps to address growth challenges exacerbated by trade policies of the incoming Trump administration.
The US stock market has shown remarkable strength over the past month, with the S&P 500 up around 6% since the US election. All three major US stock indexes are now trading at or near record highs.
In line with this optimism, Wall Street's "fear gauge" -the VIX index - has reached its lowest level in months. The VIX tracks anticipated S&P 500 volatility over the next 30 days by analyzing options data. Its current level suggests a period of minimal volatility expectations among investors.
With the VIX at its current low level, some investors may interpret this as a sign of market complacency, which could be an opportunity to take precautions or hedge against future volatility.
