Wall Street ended a turbulent week on a more subdued note, with a relatively uneventful session as there were no major economic reports or earnings announcements. The S&P 500 and Nasdaq gained 0.40% and 0.50%, respectively, while the Dow Jones posted a 0.13% gain. All sectors closed in positive territory except for materials. Despite the week's significant volatility and sharp market swings, the S&P 500 logged its fourth consecutive week of losses, down 0.04%, while the Nasdaq slipped 0.20% and the Dow Jones fell 0.60%.
The Hang Seng Index surged 1.20% on Friday, marking its third consecutive session of gains, following a rally on Wall Street Thursday as fears of a potential US recession subsided after a drop in weekly jobless claims. Meanwhile, Chinese CPI data revealed that consumer prices rose to a five-month high of 0.50% y/y in July, driven by rising food prices and a further increase in non-food prices. The Nikkei rose 0.56%, reversing losses from the previous session and tracking overnight gains on Wall Street as stronger-than-expected US unemployment data eased concerns of an economic slowdown.
The FTSE 100 closed slightly higher on Friday, above 8 150, mirroring a positive session on Wall Street after the latest jobless data reduced concerns about the US. economy. European stocks closed a choppy session marginally higher, ending a volatile week in the green as markets continued to evaluate recession risks in the US and the recovery of global risk sentiment after Monday’s shock. The Eurozone’s Stoxx 50 finished just above the flatline at 4 670, up 0.70% for the week, while the pan-European Stoxx 600 added 0.60% to close at 499, a 0.30% weekly gain.
On Thursday, the JSE reversed earlier session losses amid mixed global markets as the latest US labour market report somewhat calmed investor fears over the possibility of a US recession. Initial unemployment claims were lower-than-expected last week, providing a glimmer of hope amid other signs of a softening labour market. This report followed concerns raised by the most recent nonfarm payroll report, which showed a sharper-than-expected slowdown in job growth. The JSE all share index gained 0.47% to 80 739 points, with major indices showing mixed results. The South African rand performed well on Thursday, trading at R18.36/$ by 18h00 local time.
In commodities, Brent crude oil futures rose 0.60% to close at $79.6 per barrel on Friday, marking a weekly gain of over 3.50%, the first rise in five weeks. This increase was driven by positive economic data and hints from Federal Reserve officials that they might cut interest rates as early as September, easing concerns about demand. Gold prices eased near $2 420 per ounce on Friday after gaining nearly 2% in the previous session. Nonetheless, gold continues to benefit from ongoing geopolitical risks and expectations of a Federal Reserve rate cut.
