HONG KONG — As anticipation builds for the eagerly awaited U.S. government jobs report, global markets mostly trended upward on Friday. Following a positive performance on Wall Street, which broke a three-day losing streak, the S&P 500 rose by 0.8% to 4,585.59, the Dow Jones Industrial Average gained 0.2% to 36,117.38, and the Nasdaq composite surged by 1.4% to 14,339.99.
While the futures for the S&P 500 and the Dow Jones Industrial Average experienced a minor dip of 0.1%, Friday's European market revealed a 3.2% inflation rate in Germany for November. This data, marking the fifth consecutive month of decline, supports predictions of imminent European Central Bank rate cuts. Germany's DAX saw a modest increase of 0.1% to 16,646.88, the CAC 40 in Paris gained 0.3% to 7,450.53, and Britain's FTSE 100 rose by nearly 0.1% to 7,518.90.
In Tokyo, the Nikkei 225 index declined by 1.7% to 32,307.86 as investors speculated about the potential end of the Bank of Japan's negative interest rate policy. Ahead of a meeting with Prime Minister Fumio Kishida, BOJ Gov. Kazuo Ueda expressed concerns about facing an "even more challenging" situation at the end of the year and in early 2024. The U.S. dollar dipped to 143.97 Japanese yen from 144.12 yen on Friday.
Updated data revealed that Japan's economy contracted by 2.9% year-on-year in the July-September quarter, worse than earlier estimates. In Hong Kong, the Hang Seng index edged 0.1% lower to 16,334.37, while the Shanghai Composite index rose by 0.1% to 2,969.56. The Kospi in Seoul saw a 1% gain, reaching 2,517.85, and Australia's S&P/ASX 200 was 0.3% higher at 7194.90. India's Sensex added 0.1% following the central bank's announcement of keeping its key interest rate unchanged. Bangkok's SET remained virtually unchanged.
In Wall Street trading, significant contributions from big Tech stocks, notably a 5.3% surge for Google's parent company, Alphabet, propelled the market higher. These influential stocks, characterized by their substantial size, have experienced significant growth throughout the year. Wall Street's recent rally has been fueled by optimism surrounding the Federal Reserve potentially concluding its interest rate hikes aimed at curbing high inflation. Investors are eagerly awaiting the U.S. jobs report due on Friday for further market insights.
The Federal Reserve is delicately navigating the job market, aiming for a slowdown that avoids both unemployment spikes and inflationary pressures. Recent reports indicate a slight increase in U.S. workers applying for unemployment benefits, meeting economists' expectations and not causing undue concern. The prospect of easier rates is fueling optimism across various investments, especially in sectors perceived as high-value or offering significant future growth. Big Tech stocks, including Alphabet, Apple, Amazon, and Nvidia, continue to make substantial gains, with Alphabet's year-to-date increase exceeding 55%.
Alphabet's recent surge, driven by the announcement of its Gemini artificial intelligence model, was a key factor in lifting the S&P 500. JetBlue Airways also experienced notable success, soaring 15.2% after indicating potentially better-than-expected results for the final quarter of the year. However, C3.ai faced a setback, dropping 10.8% following weaker-than-expected revenue in the latest quarter.
Crude oil prices, which had been declining due to concerns about global demand, reversed their trend on Friday. Benchmark U.S. crude rose by $1.61 to reach $70.95 per barrel, recovering from a slight decline in the previous session. Brent crude, the international standard, increased by $1.73 to $75.78 per barrel.
Meanwhile, the euro experienced a modest dip, slipping from $1.0793 to $1.0790. As markets await the U.S. jobs report, investors are closely monitoring these economic indicators and their potential implications for various asset classes.
As markets eagerly await the U.S. jobs report, the delicate dance of the Federal Reserve in managing the job market is in focus. Striking a balance between avoiding unemployment spikes and preventing inflationary pressures remains the central challenge. Recent economic indicators, including a modest increase in U.S. workers applying for unemployment benefits, have met economists' expectations without causing significant alarm. The prospect of easier rates continues to drive optimism across various investments, particularly in high-value sectors like Big Tech, where companies such as Alphabet, Apple, Amazon, and Nvidia have enjoyed substantial gains.
Alphabet's recent surge, fueled by the introduction of its Gemini artificial intelligence model, played a pivotal role in lifting the S&P 500. JetBlue Airways also experienced notable success, buoyed by optimistic projections for the final quarter of the year. However, C3.ai faced a setback following weaker-than-expected revenue.
Crude oil prices, which had been on a recent decline amid concerns about global demand, reversed course on Friday. Benchmark U.S. crude rebounded, rising by $1.61 to $70.95 per barrel, while Brent crude, the international standard, increased by $1.73 to $75.78 per barrel.
As economic indicators continue to shape market sentiment, investors remain vigilant, monitoring developments and anticipating the potential implications for various asset classes in the dynamic financial landscape.