Major Wall Street indexes finished in the positive territory, on the last 2023 triple witching day. The Dow Jone added 60 points and the Nasdaq gained 0.3% while the S&P 500 finished slightly in the red. Stocks experienced a choppy session volatility that was linked to the triple witching expiration event. Investors also weighed NY Fed President Williams' remarks that the central bank is not currently discussing rate cuts and the premature consideration of a March interest rate. Despite the NY Empire State Manufacturing Index’s unexpected decline, S&P Global PMIs highlighted a strong services sector, though manufacturing fell short. The week's performance indicated a seventh consecutive week of gains for the S&P 500 and Nasdaq, with increases of 2.4% and 3%, respectively. The Dow Jones added 2.7%, marking a ninth straight winning week.
Frankfurt’s DAX 40 closed flat at 16,751 on Friday, holding the slight pullback from its record-high this week as markets continued to digest decisions from major monetary authorities this week along with the latest PMI figures. On Thursday, the European Central Bank maintained steady rates and pushed back against expectations of imminent cuts.PMI figures pointed to a faster-than-expected contraction in the German private sector in December, with employment levels experiencing the most significant decline since August 2020. In corporate news, Munich Re edged lower after it announced a target of €5 billion in net profit for the upcoming year.
The Shanghai Composite fell 0.56% to close at 2,943 while the Shenzhen Component lost 0.35% to 9,385 on Friday, with both benchmarks finishing the week lower as investors assessed key economic data in China. Latest figures showed that Chinese industrial output for November expanded at the fastest pace in nearly two years, while retail sales rose less than expected. The mixed data reflected soft demand conditions in the country that was a central focus for policymakers during a high-level meeting this week. Mainland stocks also defied gains in global markets as the prospect of interest rate cuts from the US Federal Reserve next year continued to boost other equity markets. Notable losses were seen from index heavyweights such as ChongQing Changan (-0.3%), Contemporary Amperex (-1%), Eoptolink Technology (-5.2%), Kunlun Tech (-1.7%) and Tonghua GH (-10%).
The BSE Sensex closed 1.37% higher at a record 71,484 on Friday, Among Sensex individual stocks, US demand-dependent tech firms HCL Tech, Tata Consultancy Services and Infosys were the top performers, rising 5.6%, 5.3% and 5.2%, respectively. Conversely, Nestlé India lost 1.8%, after HSBC downgraded the equity. On the week, the Sensex rose 2.3%, extending gains for the seventh consecutive week and posting the longest winning streak in six years.
The S&P/TSX Composite index slid by 1.2% to close at the 20,529 mark on Friday, erasing gains from the previous sessions amid sharp declines for heavyweight energy producers and lenders in Toronto. Meanwhile, investors reacted to remarks from the BoC Governor Macklem saying interest rates still remain elevated and it's too early to discuss rate cuts, putting it on a divergent path from the U.S. Federal Reserve. Crude oil benchmarks extended their volatile momentum as Canadian Natural Resources (-3.8%) and Cenovus Energy (-2.9%) sharply declined. Lenders also underperformed and retreated 0.8% on average, led by losses from TD Bank (-0.9%) and Bank of Nova Scotia (-1.7%) amid lower bond yields.
The S&P/ASX 200 Index climbed 0.88% to close at 7,443 on Friday, hitting its highest levels since early August, with mining and energy stocks leading the gains amid firmer commodity prices. Domestically, signs of a softening labor market in Australia bolstered speculation that the Reserve Bank of Australia is probably done tightening and could start signaling future rate cuts. Gains in the mining and energy sectors were led by BHP Group (2.4%), Rio Tinto (2.2%), Fortescue Metals (1.4%), Pilbara Minerals (3.4%), Woodside Energy (1.4%) and Santos (3.2%). Heavyweight financial, technology and consumer-related stocks also advanced.
