US stocks finished higher on Friday, as investors looked forward to the August inflation report next week that will provide further clues on the U.S. interest rate trajectory. The Dow Jones closed 76 points higher, while the S&P 500 and the Nasdaq added 0.1% each. Energy stocks gained tracking higher oil prices as Marathon Petroleum (2.9%), Valero Energy (4.7%) and Phillips 66 (2.9%) were among the major winners. Apple stocks gained 0.3%, after losing 6.2% or almost $200 billion in the previous two sessions, amid news that Chinese government workers have been banned from using iPhones. Also, Kroger surged 3.1% after the supermarket operator and Albertsons announced they will sell off 413 stores for $1.9 billion to C&S Wholesale Grocers. On the week, the Dow Jones is down about 1% while the S&P 500 lost 1.5% and the Nasdaq fell 2.1%.
European equity markets closed a choppy session with slight gains on Friday, with Germany’s Dax advancing 0.2% to 15,457 and the pan-European Stoxx 600 halting seven sessions of losses with a 0.2% increase, taking the index to 454. While stock benchmarks were able to halt selling pressure, market participants trod with caution amid rising stagflation concerns, magnified by a series of inflation rebounds for EA members and a fresh surge in TTF prices, in addition to sharp downward revisions for the bloc’s PMIs and GDP. Gains in the continent were supported by rallies for heavy-weight French luxury brands with LVMH jumping 2.2%, and energy producers with Total Energies and ENI both adding more than 0.5%. In Frankfurt, Covestro soared 8.5% after announcing it is preparing formal talks to acquire Adnoc for $12 billion. Still, the Stoxx 600 dropped 0.8% on the week.
The Shanghai Composite fell 0.18% to close at 3,117 while the Shenzhen Component dropped 0.38% to 10,282 on Friday, with both benchmarks finishing the week lower as weaker-than-expected Chinese services sector and trade figures amplified concerns about the country’s flagging economy. Chinese stocks were also weighed down throughout the period .Technology and new energy stocks led the decline on Friday, with notable losses from Zhongji Innolight (-1%), Talkweb Information (-1%), Luxshare Precision (-2%), Contemporary Amperex (-1.6%) and Longi Green Energy (-1.6%).
The BSE Sensex closed 0.5% higher at 66,599 on Friday, extending gains for the sixth consecutive session and securing a 1.9% weekly gain, led by energy stocks and largely ignoring weak global market trends. Although IT and pharma shares were affected by soft global cues and particularly, by rising tensions between China and the US, gains in infrastructure, industrial and capital goods due to improved order flows alongside a strong preference for domestic small and mid-caps contributed to the current positive sentiment. On the corporate front, US chipmaker Nvidia announced a partnerhsip with industrial conglomerate Reliance to build and develop AI infrastructure in India. Among individual stocks, energy public enterprise NTPC was the top performer, rising 2.7% after a sudden surge in power demand. Moreover, Tata Motors climbed 2%, following the announcement of a new affordable electric vehicle. Meanwhile, the Nifty 50 rose 0.47% to 19,820.
The Nikkei 225 Index dropped 1.16% to close at 32,607 while the broader Topix Index lost 1.02% to 2,359 on Friday, sliding for the second straight session as investors reacted to a report showing Japan’s second quarter GDP growth was revised lower. The country’s economy expanded by 4.8% on an annualized basis in the second quarter, downgraded from a 6% growth seen in preliminary estimates and lower than market expectations for a 5.5% expansion. Nearly all sectors declined on Friday, with notable losses from index heavyweights such as Tokyo Electron (-3.8%), Fast Retailing (-1.3%), Sony Group (-2%), Keyence (-1.5%) and Hitachi (-1.5%).
