US EQUITY EXTENDED GAIN WHILE EUROPE & ASIA FELL MARGINALLY

USA

US stocks were higher on Friday, the Dow Jones added 217 points, the S&P 500 rose 1% and the Nasdaq was 0.7% higher after US inflation figures came as expected in November gearing up investors to bet that this is the peak of year-on-year numbers, so the Fed will not need to speed up the tightening cycle. The annual inflation rate accelerated to 6.8% in November of 2021, the highest since June of 1982. Among single stocks, Oracle shares jumped 15.8% after the quarter results topped forecasts, while the tech sector boosted the indexes' gains with cisco systems up 3%, Microsoft higher 2.9%, and Apple booking gains of 2.7%. Also, Ford Motor and GM helped to sustain the gains by increasing 9.4% and 5.9%, respectively. On the week, all three main US averages added gains, with S&P rising 3.8%, the highest weekly gain since February as Omicron jitters eased. Attention now turns to the FOMC decision next week.

EUROPE

European stock markets closed slightly in the red on Friday, as investors digested a batch of economic data released earlier, while focusing on key central bank meetings due next week. Germany’s annual inflation rate was confirmed at a near three-decade high of 5.2% in November. Frankfurt's DAX 30 edged down 0.1% to 15,623, while other major indexes lost between 0.2% and 0.5%. For the week, however, the DAX 30 surged 3% and the pan-European STOXX 600 climbed 2.8% its biggest weekly gain since March following a strong two-day rise at the beginning of the week.

The FTSE 100 fell 0.4% to close at 7,292 on Friday, after weaker than expected GDP figures in the UK, while in the US consumer prices rose 6.8% YoY in November, the fastest increase in prices since 1982, strengthening the case for a quicker tapering by the US Fed. Britain's economy grew 0.1% in October, below expectations of a 0.4% increase, amid ongoing supply chain problems and is expected to slow further following the imposition of new COVID-19 rules this month, denting market expectations of an interest rate hike by the Bank of England next Thursday. . Still, the index extended gains for a second consecutive week, rising 2.3%.

The CAC 40 closed a volatile session down 0.2% at 6,991.68 on Friday, as investors weighed on a batch of economic data, anticipating possible decisions in key central bank meetings to come.. On the corporate front, tech shares loss 1%, driven by Dassault Systemes (-1.2%), Capgemini (-1%), and STMicroelectronics (-0.9%). Meanwhile,The FTSE MIB closed 0.4% lower at 26,721.98 on Friday, as investors digested a batch of economic data while awaiting key central bank meetings to come mid-December and monitoring the progression of the Omicron variant. On the corporate front, fears of slower economic recovery weighed on luxury equities, as seen in Ferrari (-1.6%) and Moncler (-1.1%). The index was also dragged by the banking sector, mainly Banco Bpm (-1.5%), Bper Banca (-0.7%), and Intesa Sanpaolo (-0.4%).

ASIA

The Nikkei 225 Index fell 1% to close at 28,437 while the broader Topix Index lost 0.77% to 1,975 on Friday. The market declines were led by high valuation technology stocks, with losses notable from Lasertec Corp (-2.83%), Recruit Holdings (-5.45%), Science Arts (-23.27%), Monex Group (-7.53%) and M3 Inc (-3.18%). Meanwhile, the major Japanese indices snapped two consecutive weeks of declines amid a sharp rebound from Omicron-driven lows earlier this week.

The BSE Sensex ended little changed at 58,786.67 on Friday, snapping a 3-day winning streak, with losses in banks and technology outweighing the gains in some heavyweights like Asian Paints (+3.25%) and State Bank of India (+1.25 %). Investors turned cautious as they eye a handful of macroeconomic data like November domestic and US inflation data, upcoming Fed meeting outcome and further updates on the Omicron COVID variant. On the week, the BSE booked a 1.88% gain.

The Shanghai Composite Index fell 0.18% to close at 3,666 while the Shenzhen Component Index lost 0.24% to 15,112 on Friday, easing slightly from a PBOC-driven rally as renewed concerns around the Omicron’s economic impact. Weaker-than-expected credit demand, fresh default concerns in the property market and the delisting of a Chinese ADR in New York also weighed on investor sentiment. Property developers and brokers led the retreat, with notable losses from China Vanke (-1.18%), Poly Developments (-1.77%), Seazen Holdings (-6.02%), Citic Securities (-1.64%), GF Securities (-4.12%) and Orient Securities (-3.75%).