A Wall Street benchmark on Friday secured weekly gains, with global stocks heading for their biggest one-month gain since November 2020. This came in a truncated and subdued trading session after the US Thanksgiving holiday, according to a Reuters report.
Oil futures remained steady in anticipation of the next OPEC+ meeting scheduled for next week. The meeting can give an agreement on production reductions for the year 2024.
Gold futures ended on a positive note as the dollar index edged lower against a range of currencies on Friday. Data, as indicated by a Reuters report, revealed that US business activity remained stable in November, although there was a decline in private sector employment.
MSCI’s global stock index rose 0.12%, poised for a monthly gain of 8.7%, as investor confidence grew on the belief that US interest rates had reached their peak. The market narrative shifted to speculation about the timing of potential tariffs.
The Dow Jones Industrial Average climbed 117.12 points, or 0.33%, reaching 35,390.15. The S&P 500 saw a gain of 2.72 points, or 0.06%, closing at 4,559.34, while the Nasdaq Composite experienced a drop of 15.00 points, or 0.11%, ending at 14,250.86.
On Friday, the STOXX 600, Europe’s key benchmark, rose 0.4%, marking a second consecutive week of gains. Meanwhile, Germany’s DAX saw a 0.2% increase in its closing figures. Investors have been closely scrutinizing data from Germany to gain insight into the country’s economic prospects.
In geopolitical developments, Israel and Hamas initiated a four-day ceasefire on Friday. Notably, during that period, extremists released a group of hostages – the initial indication of a possible relaxation in the nearly seven-week conflict.
Since March 2022, the US central bank has increased benchmark borrowing costs by more than five percentage points as part of a broader global monetary tightening cycle. “Weaker (economic) data and weaker inflation in the US has given markets hope that you will start to see rates rise. But the debate is whether we should take profits now,” said Peter Doherty, director of investment management at Arbuthnot Latham. in London.
US 10-year Treasury yields, a key determinant of global borrowing costs, climbed to 4.485% but remained comfortably below the recent milestone of 5% reached last month.
Minutes from the most recent Federal Reserve policy meeting indicated reluctance to implement further interest rate hikes unless progress in curbing inflation showed signs of faltering.
S&P Global reported that its flash US Composite PMI Output Index, monitoring both the manufacturing and services sectors, held steady at 50.7. While there was a slight increase in service sector activity, it offset a contraction in manufacturing. A reading above 50 means expansion in the private sector.
Due to a lack of robust order growth, businesses have reduced their workforce, leading the survey’s employment rate to contract for the first time since June 2020. A softening labor market is expected to support the Federal Reserve in its efforts to combat inflation.
After fears of a delayed OPEC+ meeting, oil prices remained steady after falling more than 1%. Brent crude futures ended with a 1.03% decrease, reaching $80.58 per barrel, while US prices saw a 2.02% decrease, settling at $75.54.
Meanwhile, gold futures experienced a 0.5% increase, closing at $2,003, and spot prices rose 0.48% to $2,001.36 per ounce.
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Updated: 26 Nov 2023, 16:22 IST
(tagsTo Translate)Wall Street