Weeky Markets Newsletter 20 JAN 2025 by Charlotte St Felix
Weekly Market Recap: January 13 – January 19, 2025
Global Equities:
United States: Major indices showed varied movements this week, with the S&P 500 advancing 1% and the Nasdaq Composite rising 1.5%.
Markets were buoyed by cooling inflation data (CPI up 0.4% m/m, 2.9% y/y; Core CPI up 0.2% m/m, 3.2% y/y) and robust December jobs growth (256,000 jobs added vs. 155,000 expected).
Treasury yields slid, with the 10-year yield plunging to 4.64%.
Europe: The STOXX Europe 600 Index ended 0.65% higher, reflecting cautious optimism despite political and economic uncertainty.
United Kingdom: The FTSE 100 closed at a record high of 8,505.22, gaining 3.1% over the week. Weak domestic economic data raised hopes for interest rate cuts, while a weakening pound benefited large-cap, internationally focused companies.
France: The CAC 40 Index advanced 2.4% this week, supported by strength in luxury goods and energy companies. Optimism surrounding a potential Middle East ceasefire also provided a lift to French equities.
Germany: The DAX 40 Index ended the week 2.7% higher, driven by strong industrial output data and easing energy prices. German exporters benefited from a weaker euro, which improved competitiveness in global markets.
Fixed Income:
U.S. Treasury yields dropped across maturities, influenced by mixed inflation data. The Fed is expected to pause rate cuts for January and March due to sticky inflation.
UK bond yields fell sharply last week, with the 10-year gilt yield dropping from 4.91% to 4.66% amid weak retail sales data, lower-than-expected inflation, and rising expectations of a Bank of England rate cut.
Cryptocurrency:
Bitcoin (BTC-USD): Bitcoin surged over 3% this week, surpassing the $100K mark, supported by softer core inflation data and optimism around Fed policy stability.
Economic Indicators:
US
Inflation: Headline CPI rose 0.4% m/m and 2.9% y/y, with core inflation at 0.2% m/m and 3.2% y/y.
Jobs Report: December's employment data beat expectations, adding 256,000 jobs versus a forecasted 155,000, reinforcing a strong labor market.
UK
UK gilt yields saw a sharp decline, with the 10-year yield dropping from 4.91% to 4.66%. This marked the best week for gilts since July, fueled by disappointing retail sales data, lower-than-expected December inflation (2.5%), and rising expectations of a Bank of England rate cut.
Geopolitical Events:
Israel-Hamas Ceasefire: A ceasefire agreement, set to begin January 19, could bring stability to the Middle East, alleviating energy market disruptions.
On January 20, 2025, Donald Trump was inaugurated as President of the United States. The event marked a contentious and polarizing transition, with large-scale demonstrations in Washington, D.C., and tight security around the capital. Trump's inaugural address emphasized economic revitalization, reduced regulation, and a hard stance on international trade. Markets remained stable, but uncertainty looms over future trade policies and international relations.
In DJT’s chart:
Uranus Conjunct Midheaven: signals bold, disruptive leadership and transformative policies that challenge the status quo, particularly in areas like cryptocurrency and deregulation
Neptune Trine Venus: reflects an aspirational vision linked to wealth and speculative ventures, such as the rise of cryptocurrencies (e.g., $TRUMP coin), blending innovation with potential deception
Uranus Sextile Saturn: indicates opportunities to disrupt existing structures while maintaining stability, fostering innovation in trade, energy, and technology
Saturn Square Uranus: highlights potential regulatory pushback against bold reforms, particularly in speculative markets like cryptocurrency, creating volatility
Commodities:
Oil: Crude prices edged higher for a fourth consecutive week.
Gold: Gold maintained strength, reflecting safe-haven demand amid ongoing inflation concerns.
Astrological commentary
Israel-Hamas ceasefire
The synastry chart between Israel’s foundation and the timing of the Hamas-Israel ceasefire deal highlights significant astrological dynamics, suggesting the agreement’s potential instability and challenges to lasting peace. Below are the key aspects and their interpretations:
On the left is the transit of the state of Israel to the deal’s chart
Sun conjunct Uranus: This aspect signifies the deal as a moment of sudden change and disruption. Uranus, symbolizing unpredictability and upheaval, suggests that while the ceasefire may bring an initial sense of relief, it could also trigger unexpected developments, destabilizing the agreement.
Pluto square Mercury: Pluto’s square to Mercury (exchange and communication) emphasizes deep-rooted tensions and the interrogation of the treaty’s foundations. This aspect highlights the likelihood of hidden motives, power struggles, or difficulties in reaching mutual understanding, weakening the agreement’s durability.
Mars opposing Mercury: The opposition of Mars and Mercury reflects conflicting energies between aggression and negotiation. This aspect suggests underlying hostility that could escalate, disrupting the delicate balance achieved during the ceasefire discussions.
Venus square Venus: The square between Venus in Israel’s chart and the ceasefire’s Venus indicates a clash of values and priorities. Venus represents harmony and agreements, and this tension suggests difficulties in aligning mutual interests, undermining the treaty’s ability to foster lasting peace.
Uranus square Saturn conjunct Venus: This aspect between Uranus (disruption) and Saturn-Venus (structure and harmony) reflects the struggle between maintaining stability and facing unpredictable shifts. The Venus-Saturn conjunction of the deal seeks to establish order, but Israel’s Uranus introduces volatility, indicating that the agreement may struggle to hold under changing circumstances.
Natal Saturn conjunct Mars, opposing the deal’s Saturn: This dynamic indicates significant pressure and conflict. Saturn’s conjunction with Mars reflects the underlying tension of control and conflict, while the opposition to the deal’s Saturn suggests a rigid, unyielding dynamic that could lead to a breakdown of the agreement over time.
The synastry between the charts suggests the ceasefire, while momentarily stabilizing, is built on a precarious foundation. Tensions indicated by Pluto, Mars, and Uranus suggest that underlying issues of power, aggression, and unpredictability remain unresolved. As these aspects play out, there is a high likelihood that the agreement may be short-lived, potentially erasing the recent optimism seen in markets tied to the news of the ceasefire.
Renewed hostilities could reverse any positive market momentum tied to the ceasefire and affect sectors sensitive to geopolitical tensions, such as energy and defence.
Equities
US equities
The S&P 500 experienced a 4% correction in early January 2025 but rebounded 1% during the week of January 13–17, closing at 5,996.66. This recovery suggests a short-lived correction, with investor confidence improving. The CBOE Volatility Index (VIX) dropped 8.2%, reaching 15.6, its lowest since mid-2024, reflecting optimism but also raising concerns about potential complacency.
Astrologically, Uranus's conjunction with the S&P 500 Ascendant signals ongoing volatility, while Saturn’s separating aspects to the index’s Sun and Saturn suggest stabilization after recent contractions. However, Pluto’s applying square to Neptune indicates deeper transformative trends. As Pluto approaches the chart’s Midheaven in March 2025, coinciding with a Pisces-Virgo axis eclipse, a significant market shift is anticipated. Pluto’s opposition to the index’s natal Uranus and Uranus's lingering presence near the Ascendant will likely sustain volatility in the months ahead.
UK equities
In the UK, the week of January 13–17, 2025 saw the FTSE 100 gain 3.1%, closing at a record high of 8,505.22 on January 17. The rally was driven by expectations of interest rate cuts following weak domestic economic data and a weaker pound, which benefited internationally focused companies. Key sectors like energy and financials also contributed to the strong performance.
In contrast, during the week of January 6–10, 2025, the FTSE 100 posted a modest increase, closing at 8,248.49 on January 10. Gains were limited due to concerns over rising gilt yields and slower economic growth, which tempered investor optimism.
The FTSE 100 is undergoing Pluto square Pluto and Neptune square Neptune transits, signalling systemic transformation and renewal of its structures. The Pluto square peaks at the end of January 2025, while the Neptune square culminates in mid-March, aligning with potential shifts in the UK market’s fundamentals.
Uranus is not making major transits to the chart, its absence is reflected in stable market conditions. Indeed, the FTSE 100 Volatility Index (VFTSE) remained steady last week, ranging between 10.27 and 11.54, showing limited turbulence.
France & Germany
The CAC 40 and DAX 40 saw steady performances during the week of January 13–17, 2025, as both indices benefited from positive earnings and improving sentiment in key sectors. The CAC 40 rose 2% to close at 7,709.75, driven by strong gains in luxury goods, with LVMH and Hermès performing well amid robust earnings reports. In contrast, the DAX 40 posted a more modest increase of 0.3%, closing at a new all-time high of 16,320.45, supported by strong performances in industrials and technology. Compared to the previous week, the CAC’s gains accelerated from 1.1%, while the DAX slowed slightly from its 0.5% advance, reflecting sectoral and regional differences in market drivers.
Astrologically speaking, both indices are entering a transformative period in 2025 with shared influences of Neptune and Saturn – we can expect contraction following rising enthusiasm:
Neptune square Uranus (March 2025): Signals innovation challenges and uncertainty, likely impacting technology and energy sectors in both markets.
Neptune square Saturn (April for CAC, May for DAX): Reflects periods of structural adjustments and pragmatic decision-making, particularly in sectors vulnerable to macroeconomic shifts.
Saturn square Saturn (April for CAC, May for DAX): Indicates consolidation and long-term strategy shifts, with each index facing unique timing for reassessments and rebalancing.
Crypto currencies
Over the past two weeks, Bitcoin (BTC) has exhibited notable volatility. After surpassing the $100,000 mark on January 6, 2025, BTC experienced a decline, briefly dipping below $90,000 on January 13, 2025, before recovering to approximately $96,816.47 by January 17, 2025.
The bitcoin chart’s displays an Uranus square Neptune aspect, exact in February 2025, which is associated with heightened market volatility and speculative exuberance. This alignment often correlates with sudden and unpredictable market movements, as Uranus's influence brings innovation and disruption, while Neptune's energy can blur boundaries and create illusions, leading to over-optimism or misjudgment in financial decisions, whilst transiting Saturn opposition Saturn, exact in March 2025 could bring some contraction to the price growth.
Looking ahead, the Neptune square Pluto aspect, peaking in May 2025, suggests deep, transformative shifts in collective financial structures. This transit may uncover hidden issues within financial systems, prompting significant changes and reforms.
On January 17, 2025, the $TRUMP coin was launched, coinciding with significant transits in Donald Trump's natal chart. Notably, transiting Uranus is conjunct his Midheaven, indicating sudden changes and a public embrace of innovative ventures. Additionally, transiting Neptune trines his natal Venus in Cancer, suggesting the pursuit of financial opportunities that may have an illusory or deceptive quality.
We are overall expecting disruptions across multiple asset classes around the time of the Pisces-Virgo axis eclipse in March 2025.
Earnings Calendar for next week:
Tuesday, January 21: Netflix (NFLX), General Electric (GE)
Wednesday, January 22: Proctor & Gamble (PG), Johnson & Johnson (JNJ)
Thursday, January 23: Intuitive Surgical (ISRG), Union Pacific (UNP)
Friday, January 24: American Express (AXP), Verizon (VZ)
Relevant Charts for the Newsletter
Bitcoin – January 3, 2009, 18:15:00
CAC 40 – December 31, 1987, 00:00:00
DAX – July 1, 1988, 00:00:00
FTSE 100 – January 3, 1984, 08:00:00
Israel – May 14, 1948, 16:00:00
S&P 500 – March 4, 1957, 09:30:00
Donald J Trump – June, 14, 1946, 10:54