All the three major averages closed 0.4% higher on Friday, with the S&P 500 hitting new 2023 high, fueled by optimistic economic data that raised hopes for an economic soft landing. Fresh data showed that the nonfarm payrolls in the US rose by a more-than-expected 199K in November and the unemployment rate fell to a 4-month low of 3.7%, dampening bets that the Fed will cut interest rates as early as spring 2024. Also, the University of Michigan's consumer sentiment for the US surged to 69.4 in December with the gauge of inflation expectations in the year ahead dipping to 3.1%, the lowest level since March 2021. Among Stocks, Lululemon Athletica rose 5.4% after posting strong quarterly results. Paramount surged 12% following reports that Skydance Media and RedBird Capital are considering buying pieces of the media giant. Boeing jumped 3.1% and Uber gained 1.1% and topped a 33-month high of $61.9. On the week, all the three major averages advanced to mark the 6-week win streak.
The S&P/TSX Composite Index finished 0.2% higher at the 20,331 level on Friday.The heavy-weight energy sector was lifted by some respite for global oil benchmarks, with Canadian Natural and Suncor adding 1.7% each. Banks also advanced, as TD Bank (0.5%), BMO (1.4%) and Bank of Nova Scotia (1.1%) all advanced. In company news, MEG Energy added 0.8% despite J.P. Morgan downgraded the energy company to "neutral" from "overweight". Meanwhile, Imperial Oil added 3.5% after J.P. Morgan upgraded the oil company to "neutral" from "underweight". Canadian Western Bank gained 2.8% reporting higher fourth-quarter adjusted profit per share. On the week, the Canadian index lost nearly 0.3%.
Frankfurt's DAX 40 extended gains Friday afternoon, closing above 16,760 for the first time and marking a 2.2% weekly gain, its sixth consecutive week of positive performance. US latest data confirmed a decrease in German inflation to 3.2% in November, marking the lowest rate since June 2021. This supported the argument for a peak in Eurozone interest rates. Notably, BMW, Airbus, Fresenius Medical Care, Sartorius, Deutsche Bank, Siemens Healthineers, Infineon, and Zalando all recorded gains of over 1%, ranking among the day's top performers.
The Shanghai Composite rose 0.11% to close at 2,970 while the Shenzhen Component gained 0.36% to 9,554 on Friday, erasing losses from the previous session as risk sentiment improved. Still, investors remained cautious ahead of Chinese inflation data that could influence the economic and monetary policy outlook. Still, the benchmark indexes finished the week sharply lower as the market came under pressure recently after Moody’s downgraded its outlook on China’s government credit rating from stable to negative, citing economic uncertainties and property sector risks. Technology stocks led the advance on Friday, with strong gains from IEIT Systems (5.6%), Hygon Information Technology (9.8%), Eoptolink Technology (6.3%), Zhongji Innolight (12.6%) and Kunlun Tech (5.3%).
The BSE Sensex index rose 300 points to reach a fresh record of 69,825 on Friday, surging 3.5% on the week as markets assessed India’s monetary policy outlook and political future. The RBI held its key policy rate at 6.5%, as widely expected, but maintained its withdrawal of accommodation policy and upwardly revised growth expectations for the next year, signaling a degree of optimism over India’s economic resilience. Still, the sharp pullback in oil prices over the week countered upside inflation risks due to rising food prices, lending some support for equities in Mumbai. Additionally, selected state assembly elections across the country favored current PM Modi’s Bharatiya Janata Party, reducing political instability risks and supporting foreign purchasing in for Indian equities.
The S&P/ASX 200 Index rose 0.3% to close at 7,195 on Friday, hitting its highest levels in 11 weeks, with resource-related stocks leading the charge amid firmer commodity prices. Australian shares also took cues from a strong session on Wall Street overnight where optimism about artificial intelligence fueled a tech rally. Gains in the commodities sector were led by BHP Group (0.7%), Rio Tinto (0.9%), Fortescue Metals (1.1%), Pilbara Minerals (3.6%) and Mineral Resources (2.9%). Santos also jumped 6.2% after saying it was in talks with larger rival Woodside Energy for a potential A$80 billion merger. Elsewhere, healthcare ad technology stocks advanced as well, including CSL Ltd (0.2%), Sonic Healthcare (2.7%) and Xero (1.3%).
