US stocks ended August on a strong note as investors closely examined crucial inflation data that is closely monitored by the Federal Reserve. The S&P 500 climbed 1%, the Nasdaq 100 gained 1.30%, and the Dow Jones reached a new record high, rising by 228 points. The Personal Consumption Expenditures (PCE) price index, favoured by the Fed as an inflation indicator, increased by 0.20% m/m and 2.50% y/y, meeting forecasts. This fuelled optimism for potential rate cuts from the Fed later this year, with the economy showing resilience while leaving room for easing.
The JSE closed slightly weaker on Friday, with the all-share index falling 0.58% to 83,749 points, and the top 40 slipping by 0.64%. Mining stocks led the decline, with seven of the day’s 10 worst-performing shares being miners, due to falling commodity prices. The rand, however, strengthened, trading around R17.76/$ by 17h45 local time.
European markets ended Friday mixed after early gains, as investors evaluated Eurozone inflation data for clues on the European Central Bank’s policy direction. The Stoxx 50 in the Eurozone closed just below the flatline at 4 960 points but gained 1% for the week and 1.80% for the month. Meanwhile, the pan-European Stoxx 600 barely stayed positive, reaching a record 525 points, with weekly and monthly gains of 1.30%.
In Asia, markets closed higher on Friday, with Hong Kong's Hang Seng climbing nearly 1.50% and Japan's Nikkei advancing 0.30%, buoyed by Wall Street's performance.
By 17h40, gold had dropped 0.74% to $2 502.32/oz, platinum fell 0.54% to $930/oz, and Brent crude was down 1.93% to $77.23 per barrel.
