DOW ON RED WHILE WORLD RQUITY ENDED POSITIVE

The Dow finished more than 140 points lower on Friday, while the S&P 500 and Nasdaq 100 lost 0.2% and 0.3%, respectively, as a slew of earnings results and new data gave Fed more room to continue with rate hikes. The University of Michigan consumer sentiment unexpectedly increased to 63.5 in April of 2023 with inflation for the year-ahead gouge jumping to a five-month high of 4.6%. Meanwhile, earning results showed that big financial companies are doing well despite of recent banking turmoil. JPMorgan Chase, Wells Fargo and Citigroup reported better-than-expected earnings and revenue triggering a rally in bank shares. Also, BlackRock assets swelled and deposits at JP Morgan unexpectedly rose as investors moved funds following the collapse of several banks. On the other hand, US retail sales decreased much more than predicted in March mostly due to lower gas prices. Considering the week, the Dow added 1.4% while S&P 500 and Nasdaq 100 were up by 1.5% each.

European stocks rose on Friday, with the benchmark Stoxx 600 up 0.5% to an over 9-week high and the German DAX up 0.5% to its highest level since early 2022, led by a 3% advance in banks following strong results from US banks JPMorgan, Citigroup and Wells Fargo. Also, the CAC 40 continued to break fresh record highs above the 7500 level. On the corporate front, shares of Hermes added 1.4% after the company's sales rose a better-than-expected 23% in the first quarter and stocks of TomTom surged 8% after reporting upbeat revenue. The pan-European Stoxx 600 advanced for the fourth straight week, up by 1.7%, the longest weekly winning streak so far in 2023.

The Shanghai Composite rose 0.60% to close at 3,338, while the Shenzhen Component gained 0.51% to 11,800 on Friday. The former also hit its highest levels in over a month, as mainland stocks tracked global markets after a surprise decline in US producer prices raised hopes that the Federal Reserve might be approaching the end of its tightening cycle. On Thursday, investors digested data showing Chinese exports surged unexpectedly 14.8% in March despite market forecasts of a 7% fall, allaying some concerns about a slowing global economy. New energy and technology stocks led the advance, with strong wins from Contemporary Amperex (2.2%), Tianqi Lithium (5.8%), Ganfeng Lithium (5.8%), Naura Technology (10%), and Semiconductor Manufacturing International (7.3%).

The BSE Sensex pared early losses and closed 40 points above the flatline at 60,430 on Thursday, advancing for the ninth consecutive session as gains for banks offset losses for tech while investors digested a batch of economic data and corporate result reports. The domestic inflation rate fell to a cooler-than-expected 5.7% in March, easing back to within the RBI’s target as food prices decelerated and spurred hopes that the central bank could refrain from more rate hikes. Inflation also extended its downward trend in the United States, although core inflation continued to increase. On the corporate front, banks enjoyed some respite after a mixed Wednesday, with Bajaj Finserv, the Kotak Mahindra Bank, and Bajaj Finance all up by more than 1%. On the other hand, weaker-than-expected corporate results from TCS pressured the tech sector in Mumbai, with the former, Infosys, and HCL Technologies, dropping more than 2%. The BSE will be closed on Friday for a holiday.

The Nikkei 225 Index jumped 1.2% to close at 28,493, while the broader Topix Index added 0.54% to 2,019 on Friday, with both benchmarks rising for the sixth straight session, helped by gains in the retail sector. Japanese shares also tracked a strong rally on Wall Street overnight as softening US inflation data raised hopes that the Federal Reserve could stop hiking interest rates soon. Leading the retails higher, Fast Retailing shares surged 8.5% after the Uniqlo owner posted better-than-expected quarterly earnings and offered an upbeat outlook. Other retail firms also advanced, including Seven & I Holdings (1.7%), Treasure Factory (10.4%), and Lawson (6.2%). The Nikkei and Topix indexes finished the week up by 3.54% and 2.71%, respectively.