Stock Market Cues: FOMC Minutes, China Manufacturing PMI, US Jobless Claims And More

Stock Market Cues: The penultimate trading day of 2025 is set to see market participants reacting to a host of global macroeconomic data points, such as Federal Open Market Committee's (FOMC) meeting minutes and China's manufacturing PMI, among other opening cues.

In the previous session on December 30, the benchmark indices closed flat after trading in a narrow range, as market participants stayed cautious amid the weekly Nifty futures and options (F&O) expiry.

Sensex slipped 20.48 points, or 0.02 per cent, to close at 84,675.08, while Nifty 50 closed 3.25 points, or 0.01 per cent, at 25,938.85.

Broader market indices closed lower as well. Among sectoral indices, metal, PSU bank, and auto outperformed, while IT, realty, FMCG, and consumer durables closed in the red.

Stock Market Cues To Watch On Dec 31

Following are the global and domestic cues that are likely to impact trade on D-Street on December 31:

FOMC Meeting Minutes

The FOMC meeting minutes showed a deeply divided Federal Reserve. The December 9-10 meeting concluded with a 9-3 vote to cut interest rates by 25 basis points to a 3.5–3.75 per cent range, though officials said the decision was a close call. Many supported the cut to cushion a softening labour market, while others worried that inflation risks remain. Policymakers agreed inflation is easing but not fast enough. Several members said rates should be kept unchanged for some time. The Fed also decided to resume bond purchases to ease pressure in short-term funding markets.

China Manufacturing PMI

China’s manufacturing activity showed signs of stabilisation in December. The official Manufacturing PMI rose to 50.1, moving back into expansion territory after eight straight months of contraction, from 49.2 in November, data from China's National Bureau of Statistics showed. The reading also beat market expectations of 49.2, as per a Reuters poll.

Meanwhile, the Non-Manufacturing PMI rose to 50.2 in December from 49.5 in the previous month, beating estimates of 49.8 and indicating an improvement in services and construction activity.

US Initial Jobless Claims

The US Department of Labor is set to release initial jobless claims data for the week ended December 27 later today. In the previous week, claims fell by 10,000 to 2,14,000, the lowest level since January. The data is closely watched by global markets, including India, for signals on the health of the US labour market and the Federal Reserve’s interest rate outlook.

US Stock Market

Wall Street's main indices closed in the negative territory overnight amid thin year-end trading volumes, dragged by IT stocks.

The Dow Jones fell 0.20 per cent, the S&P 500 declined 0.14 per cent, and the tech-heavy Nasdaq Composite slipped 0.23 per cent.

Asian Stock Markets

Asian equities traded lower in early trade on December 31, with thin volumes as most major regional markets are shut for the New Year holidays.

Japan and China’s stock markets are closed today and for the rest of the week and will reopen on January 5. South Korea’s equity market is shut today and on January 1, and trading is set to resume on January 2.

Hong Kong markets are operating for a half-day session today and will remain closed on January 1, reopening on January 2. The Hang Seng slipped nearly 1 per cent in early morning deals.

Gold And Silver Prices Today

Gold and Silver's prices fell in early trade on December 31 in domestic market.

On the Multi Commodity Exchange, February Gold futures slipped 0.76 per cent to day's low at Rs 1,35,618 per 10 grams. MCX March Silver futures tumbled up to 7.50 per cent to the day's low at Rs 2,32,228 per kilogram.