US stocks advanced during Friday’s session, with the S&P 500 rising 0.40%, the Dow climbing over 350 points, and the Nasdaq gaining 0.20%. However, the tech sector faced pressure, as Nvidia (NASDAQ:NVDA) dropped 3% and Alphabet (NASDAQ:GOOGL) slipped 1.20%, partly due to antitrust concerns surrounding Google. Trading Economics further reported that performance among mega-cap stocks was mixed, with Tesla (NASDAQ:TSLA) surging 3.80%, while Meta (NASDAQ:META) and Amazon (NASDAQ:AMZN) posted slight declines. Broader market gains were bolstered by a shift from technology into economically sensitive sectors such as financials, industrials, and consumer discretionary. Meanwhile, Wall Street remains focused on the anticipated announcement of Trump's Treasury secretary pick, which could shape market sentiment.
European stocks ended a volatile session on a strong note Friday, supported by improved global risk sentiment as investors evaluated the effects of slowing business activity on major European companies. The Eurozone’s STOXX 50 gained 0.70%, closing, while the pan-European STOXX 600 climbed 1.20% to finish at 508. Trading Economics reported that: “tech shares led the gains, gaining traction after the opening of financial markets in the US with ASML (AS:ASML), Adyen (AS:ADYEN), and Infineon jumping between 3.20% and 1.70%. In turn, consumer cyclical stocks also advanced, with Stellantis rebounding from its poor momentum this week with a 3% rise, while LVMH (EPA:LVMH) and Hermes (EPA:HRMS) shares increased by 1.50% each. The developments were enough to offset pessimism from a slowing European economy, with PMI data showing that private sector activity in the Eurozone unexpectedly contracted in November.”
The Shanghai Composite fell 3.06% to close at 3 267, and the Shenzhen Component dropped 3.52% to 10 439 on Friday, reaching their lowest levels in three weeks. Market sentiment was weighed down by concerns over China’s economic performance and corporate outlook. Investors grew sceptical about the effectiveness of China’s stimulus measures in spurring growth, while fears of higher tariffs under the incoming Trump administration further clouded the economic outlook. Additionally, downward earnings revisions from major Chinese firms intensified worries, as markets prepared for the potential impact of increased tariffs.
The FTSE/JSE All Share Index edged slightly higher to close at 85 608 points on Friday, marking its seventh consecutive day of gains and a 2.10% weekly increase. The resource-linked sector led the gains, supported by rising gold prices, which countered declines in financials, industrials, technology, and retail stocks. At the same time, traders evaluated unexpectedly strong US PMI data, which heightened expectations that the Federal Reserve might need to moderate its pace of monetary easing.
In commodities, WTI crude oil futures hovered near two-week highs at around $71.20 per barrel on Friday, as escalating geopolitical tensions involving key oil producers, Russia and Iran, fuelled fears of potential supply disruptions. Last week, Trading Economics reported that oil prices recorded their biggest weekly gain in nearly two months following Ukraine’s first attack on Russia using US and British weapons, which prompted Russia to respond by launching a newly developed hypersonic ballistic missile.
Gold eased below $2 700 per ounce on a likely technical pullback after a 6% surge for the week, driven by safe-haven demand amid the intensifying Russia-Ukraine conflict.
