ALGO's RWA TVL has seen a significant rise, increasing by 34.6%, marking a notable shift in the financial landscape. Concurrently, the social media platform X experienced a 64.5% growth in followers this year, indicating a surge in digital engagement. Meanwhile, headline inflation accelerated to +0.39% month-over-month seasonally adjusted (m/m SA), resulting in a 2.9% year-over-year (y/y) increase, aligning with consensus expectations.
In the Eurozone, headline inflation rose to 2.4% y/y in December, up from 2.2% in November, as anticipated. This rise contributed to a Q4 average inflation figure that was 10 basis points lower than the European Central Bank (ECB) staff predictions. December's data confirmed a narrative of weakening momentum in underlying inflation, with diminishing momentum in services while goods inflation remains very low.
Market-based inflation expectations have turned modestly higher but remain aligned with the 2% target. The latest University of Michigan survey revealed that US consumers' inflation expectations have risen across both one-year and five-year horizons, reflecting concerns about future economic conditions.
In currency markets, the GBP/USD pair managed to defend the 1.2200 mark during the European session on Thursday. Analysts continue to speculate on future monetary policy moves, with Danske Bank forecasting a 25 basis point rate cut by the Federal Reserve in March.
Gold prices fluctuated between minor gains and losses through the early European session. However, they managed to consolidate recent gains, reaching over a one-month peak this Thursday. Investors are keenly observing upcoming US Retail Sales and Jobless Claims data for further insights into economic health.
Oil prices have risen in early 2025, driven primarily by supply concerns linked to new sanctions on Russian exports. These geopolitical tensions have contributed to market volatility, though inflation pressures are showing signs of easing gradually. In the US, weak goods inflation combined with a more balanced job market has been instrumental in reducing inflationary pressures.