Investing.com — Wall Street is seen trading slightly higher Thursday ahead of the release of weekly unemployment figures and key US manufacturing activity data. The equivalent Chinese numbers showed some improvement, while UK house prices indicated a resilient sector. Apple will be in the spotlight as the tech giant offers rare discounts on its iPhones in China.
1. Apple offers discounts in China
Apple (NASDAQ:AAPL) is offering discounts on its latest iPhone models in China, a rare move that points to rising competition from domestic rivals in the world’s largest smartphone market.
The promotion runs from Jan. 4-7, according to the company’s website, and applies to several iPhone models.
Apple is grappling with declining market share in the important Chinese market, with competition from local manufacturers becoming more intense.
Huawei has emerged as a particularly strong challenger, and it cut the prices of a variety of high-end devices, including mobile phones, over the weekend on one of China’s leading e-commerce platforms.
Apple briefly fell out of China’s top five smartphone vendors in the second quarter of 2024 before recovering in the third quarter.
That said, its smartphone sales in China still slipped 0.3% during the third quarter from a year earlier, while Huawei’s sales surged 42%, according to research firm IDC.
2. Futures edge higher; jobless claims, manufacturing PMI due
US stock futures rose Thursday, as 2025 started with positive momentum following strong gains in the previous year.
By 03:50 ET (08:50 GMT), the Dow futures contract was up 140 points, or 0.3%, S&P 500 futures climbed 30 points, or 0.5%, and Nasdaq 100 futures rose by 140 points, or 0.7%.
The major averages handed back some gains in the final days of 2024, but still ended with solid returns. The S&P 500 surged 23% last year, the 30-stock Dow Jones Industrial Average added nearly 13%, and the tech-heavy Nasdaq Composite outperformed with a 29% advance.
The US stock markets could struggle to continue posting such strong gains in 2025 given the Federal Reserve has signaled a more cautious stance to cutting interest rates.
The holiday-shortened week has been light on economic data, but Thursday will bring a look at weekly jobless claims as well as the S&P Global manufacturing PMI data for December, ahead of next week’s monthly official jobs report.
3. Chinese manufacturing activity disappoints
Chinese manufacturing activity grew in December, but at a slower than expected rate, suggesting recent stimulus measures are struggling to boost the second largest economy in the world.
The Caixin manufacturing PMI grew 50.5 in December, compared to expectations of 51.6 and the prior month’s reading of 51.5.
The private survey comes just days after government PMI data also showed the manufacturing sector expanded in December, but at a slightly slower than expected pace.
The Caixin reading differs from the official reading in its scope, wherein the government survey focuses more on larger, state-run enterprises in the north, while the Caixin data covers smaller private companies in the south. Investors usually use both readings to gain a broader picture of the Chinese economy.
Beijing has doled out a slew of stimulus measures since late-September, but is still expected to announce more hefty measures in 2025 in the face of increased trade headwinds as Donald Trump returns to the White House.
Trump has vowed to impose steep trade tariffs on China, which could bode poorly for the world’s second-largest economy as it struggles to shore up growth.
4. UK housing sector remains resilient
UK house prices rose in December, according to mortgage lender Nationwide, as the country’s property market upswing continued.
House prices jumped by 0.7% in monthly terms during December, following a 1.2% increase in November, Nationwide said.
The resilience of the UK housing market has surprised many given indications of weakening activity across the wider economy, with prices ending the year 4.7% higher than their level of December 2023, up from 3.7% in November – the highest annual growth rate since late 2022.
“Mortgage market activity and house prices proved surprisingly resilient in 2024 given the ongoing affordability challenges facing potential buyers,” said Robert Gardner, chief economist at Nationwide.
5. Oil gains on Chinese growth optimism
Crude prices edged higher Thursday, helped by declining US oil inventories while traders cautiously eyed an economic recovery in China, the largest importer in the world.
By 03:50 ET, the US crude futures (WTI) climbed 0.4% to $71.98 a barrel, while the Brent contract rose 0.3% to $74.87 a barrel.
China’s Xi Jinping said on Tuesday in his New Year’s address that the country would implement more proactive policies to promote growth in 2025.
China’s factory activity grew in December, according to the private-sector Caixin/S&P Global survey on Thursday, but at a slower than expected pace.
This echoed Tuesday’s official survey, and suggested policy stimulus is gradually trickling into the second largest economy in the world.
The American Petroleum Institute reported on Tuesday that US oil inventories fell by 1.4 million barrels last week.
Official data from the Energy Information Administration is due later on Thursday, and a drop in US oil inventories tends to indicate an increase in demand for crude oil.
