Weekly Macro Minute

Corrado Cultera authored this issue’s devotional. He served the Lord alongside his wife, Mirta, for 54 years.

Romans 8:37 begins by saying, “in all these things,” but what does “all these things” mean? Let’s look at what precedes verse 37. Romans 8:36 says, “For your sake we face death all day long; we are considered as sheep to be slaughtered.”

In life, there are circumstances that affect us: tribulations, anxiety, persecution, hunger, nakedness and all types of adversities. And, yes, these often arrive at unexpected times.

Who among us, throughout our lives, hasn’t experienced these things? We are subject to all kinds of setbacks; that is life.

Because believers are not exempt from “all these things” of life, we all experience them!

Nevertheless, Christians experience victory. We are “more than conquerors,” and victory over “all these things” does not come from any capacity we may have or from strange factors or luck, but “through him who loved us” — Jesus Christ, the victor.

He loved us in such a way that he died for us, and his victory over death guarantees us our victory.

Because he overcame, we are more than conquerors.

I wish with all my heart that as you read the words of Romans 8:37, they will become your course, your path, throughout this year.

Want more devotionals? Our 40-day devotional book written by our Mission:Dignity recipients is available to order here.

Across the Markets

Major U.S. equity indices posted mixed performance last week. The S&P 500 declined by 0.6%, ending a three-week winning streak, while the NASDAQ Composite edged up 0.3%, boosted by strong gains in large-cap tech stocks, led by an 8.6% rally in Alphabet, Google’s parent company, following their announced breakthrough in quantum computing. Small-cap stocks underperformed, with the Russell 2000 Index dropping 2.6%, as they were more negatively impacted by the rise in interest rates.

Amid persistent inflation concerns, U.S. Treasury yields rose sharply, partially reversing their declines from the past couple of weeks. The 2-year Treasury yield climbed 15 basis points to 4.24%, while the 10-year yield surged 25 basis points to close at 4.40% on Friday. Despite the rise in Treasury yields, Fed Funds futures on Friday indicated a 96% probability that the Federal Reserve will cut interest rates by another 25 basis points next week.

The European Central Bank (ECB) reduced its key deposit rate by 25 basis points to 3.0%, marking the fourth cut this year as policymakers attempt to support the struggling European economy. Despite the interest rate cut, the pan-European STOXX Europe Index fell 0.8% as investors grappled with concerns about a weakening economy.

The UK economy has slowed sharply after a strong start to the year, with real economic growth contracting by 0.1% in October due to weakened production output.

The combination a weaker yen, supporting Japan's export-driven economy, and China’s announcement of additional economic stimulus lifted Japanese stocks, with the TOPIX Index rising 0.7%.

After optimism over new stimulus measures boosted Chinese stocks last week, recent policy announcements disappointed investors, triggering the Shanghai Composite Index to fall 0.3% and the Hang Seng Index to drop 0.5%.

In the Economy

In November, U.S. consumer prices rose as expected, while small business optimism hit its highest level since 2021, boosted by anticipated policy shifts under the Trump administration.

U.S. consumer prices rose in November, in line with consensus expectations and reinforcing the likelihood of a Federal Reserve interest rate cut next week. The core consumer price index (CPI), excluding food and energy, increased 0.3% for the fourth consecutive month. Year-over-year the core CPI has risen 3.3% and have been stuck in between 3.2% and 3.3% since June. Although inflation has cooled since its pandemic-era peak, recent progress has stalled, leading some central bankers to advocate for a slower pace of rate cuts going forward.

The NFIB Small Business Optimism Index surged 8 points in November to reach 101.7, its highest level since June 2021. The report attributed the increase in optimism to the results of the recent election, which positively influenced sentiment due to the anticipated economic policy shifts under the Trump administration, particularly business-friendly tax and regulatory policies, as well as expected relief from inflationary pressures.