The JSE closed weaker amid mixed global peers on Friday while the rand was firmer, with trading expected to be thin as US markets reopened after Thanksgiving to a shortened trading session. In economic news, South Africa recorded a trade surplus of R14.6 billion in October 2024, up from a revised R2.6 billion in the prior month. This was the widest trade surplus in three months, as exports surged 5.30% over a month to a near one-year high of R179.6 billion, mainly buoyed by shipments of precious metals
US stocks closed higher in a shortened trading session on Friday, with the S&P 500 and Dow Jones adding 0.6% and 0.4%, respectively, to set new record highs, while the tech-heavy Nasdaq outperformed, rising 0.8%. Semiconductor and equipment makers led gains following early reports that US restrictions on semiconductor equipment and AI memory chip sales to China would be less stringent than previously expected. Retailers also saw a surge thanks to Black Friday sales, For the month of November, the S&P 500 gained 5.60%, its best month of the year; the Dow Jones surged 7.50%, its best month of the year; and the Nasdaq rose 4.90%. These gains reflect optimism that a second Trump administration will adopt a more business-friendly approach, with growing expectations that the President-elect's Treasury secretary pick will help temper tariffs.
European stocks closed firmly higher on Friday, with the STOXX 50 adding 1% and the STOXX 600 jumping 0.60%, as traders digest the latest inflation reading for the Eurozone and what it means for the ECB's plans. The annual inflation rate in the Eurozone rose to 2.30% in November as expected, but the core inflation did not accelerate as anticipated and steadied at 2.70%. Also, services inflation ticked lower but remained elevated at 4.90%. The data did little to change bets for another ECB cut next month, although the size of the reduction remains uncertain.
The Hang Seng rose 0.30% on Friday after tumbling in the prior session, helped by gains in all sectors. The tech index led the rise amid potentially softer-than-expected US curbs on chip equipment sales to China. For the month, however, markets logged their second straight decline, down by 4.40%, burdened by increased concerns over the impact of persistent trade disputes between Beijing and Washington.
