USA

Year to Date (YTD)

Commentary: The US economy continued its positive trend, with the US Nonfarm payrolls being slightly above expectations at 227,000. US annual inflation rate increased slightly to 2.7%, in line with expectations. Following the US presidential elections, won by President Trump, several important political appointments were announced by the new administration as it prepares to take over the US government on the 20th of January 2025. Equity markets sustained their positive sentiment with the S&P500 now up by 26% and the tech-focused NASDAQ up by almost 34% YTD.

Europe & UK

Year to Date (YTD)

Commentary: The European economy continued to suffer from negative pressures, with political turmoil in France and in Germany further dampening economic and market sentiment. Recent Manufacturing and Services PMI numbers reflected subdued economic expectations. Eurozone unemployment remained stable at 6.3%. As expected, the ECB cut interest rates by another 25 basis points, with more interest rate cuts being expected as it seeks to support the European economy. European markets recovered most of the losses experience in November, with the Eurostoxx 50 now up by 8.6% YTD.

Malta

Year to Date (YTD)

Commentary: The central bank of Malta revised upward its economic growth projection, buoyed by better than expected data. The central bank expects Malta’s gross GDP to grow by 4.9% in 2024 and 3.9% in 2025. Economic growth is expected to continue to be supported by strong private consumption and a rebound in private investment. In 2025, unemployment is expected to remain at around 3% whilst inflation is expected to continue on its downward trajectory path to reach 2.2%. The MALTEX decreased slightly during the first few days of the month.