Wall Street’s major indexes finished slightly above the flatline on Friday as investors continue to focus on the possibility that the Federal Reserve may be able to begin cutting interest rates. Applied Materials lost 4.1% despite posting upbeat quarterly results and following a report that the semiconductor maker was under criminal investigation by the Justice Department for sending its equipment to a Chinese company without the required licenses. Charge Point Holding tumbled 35.6% after the electric-vehicle charging company lowered its revenue forecasts and replaced its CEO and CFO. Conversely, Gap enjoyed its biggest post-earnings rally in decades, surging 23.6% on the back of better-than-expected earnings and the retailer confirmed its full-year revenue outlook. Considering the week, the three major indexes booked gains for the third straight week as the Dow added 2%, the S&P 500 and the Nasdaq advanced 2.6% and 3%, respectively.
Frankfurt's DAX 40 closed 0.9% up to reach 15,930 on Friday, marking its highest level since August 31st to notch a 4.6% surge on the week. Investors welcomed a slew of economic data, including reports indicating a slowdown in inflationary pressures in the US, UK, and across European countries, coupled with falling oil prices and a surge in US weekly claims, which raised expectations that the Fed, BoE, and ECB might initiate interest rate cuts earlier than anticipated in 2024. Gains were ample across all key sectors of the Frankfurt Boerse, with healthcare giants Bayer, Fresenius, and Sartorius all adding more than 2%. Financials also closed sharply higher, with Hannover Re and Deutsche Bank increasing by more than 2.2%.
The Shanghai Composite rose 0.11% to close at 3,054 while the Shenzhen Component gained 0.25% to 9,980 on Friday, recouping some losses from the previous session as investors digested high-level discussions between China and the US. Chinese President Xi Jinping and US President Joe Biden agreed to resume high-level military communication amid efforts to ease growing geopolitical tensions in Asia. Meanwhile, investors remained cautious amid a lack of market-moving cues, while the recent rally driven by easing US inflation and bets for interest rate cuts next year lost momentum. Technology stocks led the advance, with strong gains from Eoptolink Technology (12.9%), IEIT Systems (4.1%), COL Group (2.5%), Zhongji Innolight (5.6%) and Kunlun Tech (4.7%).
The BSE Sensex closed 0.28% lower at 65,795 on Friday, dragged down by financials, as RBI's tighter rules for personal loans and credit cards are expected to threaten growth for lenders, amid the surge in demand for small consumer credit. Meanwhile, losses were offset by the current positive outlook on US interest rates and subsequent expectations of sooner Fed rate cuts, benefitting the US demand-dependent Indian IT sector. Also, lower oil prices uplifted sentiment, as it particularly favors net importers like India. Among Sensex individual stocks, State Bank of India, Axis Bank and Bajaj Finance were the biggest laggards, falling 3.6%, 3% and 2%, respectively. Conversely, Larsen & Toubro and Hindustan Unilever were the top performers, rising 2% and 1.6%, respectively. On the week, the Sensex gained 1.4%.
The S&P/ASX 200 Index fell 0.13% to close at 7,049 on Friday, extending losses from the previous session, with energy stocks leading the decline amid a sharp drop in oil prices overnight. The market also consolidated strong gains made this month as investors continued to assess the economic and monetary policy outlook globally. On Thursday, traders reacted to data showing Australia’s unemployment rate edged up to 3.7% in October from 3.6% in September, while employment blew past forecasts with a rise of 55,000. Losses in the energy sector were led by Woodside Energy (-2.3%), Santos (-1%) and Karoon Energy (-4.7%). Other index heavyweights also declined, including Wesfarmers (-1.8%), Goodman Group (-1.4%) and Woolworths Group (-1.2%).
