Stock Market
·
U.S. Markets:
o
The S&P 500 rose by
1.2%, supported by strong labor market data and positive sentiment surrounding
AI advancements.
o
Nasdaq Composite saw a 0.8% gain, driven by semiconductor and tech sectors, fueled by
announcements of new AI technologies.
o
Energy stocks underperformed
due to falling oil prices, with major players like ExxonMobil and Chevron
losing 0.5%-0.8% over the week
·
European Markets:
o
The Euro Stoxx 50
dropped by 1.5%, reflecting concerns over slowing industrial production in
Germany and inflation pressures in France.
o
Banking stocks saw modest
losses as investors anticipated cautious ECB monetary policy
·
Asian Markets:
o
The Nikkei 225 rose by
1.3% after Japan released data showing improved manufacturing output.
o
China’s Shanghai Composite
gained 0.9%, spurred by government-driven economic stimulus aimed at boosting
infrastructure and consumer spending
Commodities Market
Gold
·
Gold prices increased by 0.4%,
closing at $2,062 per ounce, slightly below its recent high of $2,071. Key drivers included:
o
Weaker U.S. dollar and lower
treasury yields bolstered gold as a safe haven.
o
Central banks globally added
to reserves, continuing a trend of aggressive gold buying
Silver
·
Silver edged up by 0.3%,
ending the week at $23.79 per ounce.
o
Industrial demand remained a
major driver, especially from the renewable energy and electronics sectors.
o
Investors are eyeing a
breakout above $24 for further bullish momentum
Oil
·
Brent crude fell 2.1% to $83.10 per barrel, while West Texas Intermediate
(WTI) dropped 1.8% to $78.90 per barrel.
o
OPEC+ maintained output cuts,
but concerns over weaker global demand kept prices under pressure.
o
U.S. inventory data showed
unexpected builds, signaling potential oversupply
Currencies Market
U.S. Dollar
(USD)
·
The U.S. Dollar Index (DXY)
fell by 0.5%, reflecting dovish Federal Reserve rhetoric hinting at rate cuts
in early 2024.
o
Strength in the labor market
moderated concerns about a potential recession but tempered aggressive rate
expectations
Euro (EUR)
·
The Euro gained 0.3% against
the Dollar, reaching 1.09 USD/EUR.
o
Positive manufacturing and
trade data from Germany supported the Euro, offsetting concerns about inflation
elsewhere in the bloc
Japanese Yen
(JPY)
·
The Yen strengthened by 0.6%,
trading at 145.30 JPY/USD, after the Bank of Japan signaled the possibility
of further monetary tightening
Emerging
Market Currencies
·
The Chinese Yuan showed slight
recovery, appreciating by 0.2%, as Beijing rolled out fiscal measures to
stabilize the economy.
·
The Indian Rupee weakened by
0.4% against the dollar due to increased imports and subdued export
performance
Key Takeaways
This week demonstrated the global markets' intricate interplay, with rising
investor caution, regional policy responses, and economic indicators shaping
price movements. Gold and silver remain robust as safe havens, oil markets are
pressured by oversupply fears, and currencies adjust to evolving monetary
policies. The balance of optimism in equities is tempered by geopolitical risks
and inflation concerns.