In New York,  the Dow Jones Index went up by 510 points or 1.21 percent on Friday. Top gainers were Nvidia (2.46%), UnitedHealth (2.37%) and Goldman Sachs (2.17%).

The Dow Jones Index Closes 1.21% Higher

The Ibovespa gained 0.8% to close at 122,102 on Friday, recovering from early losses and reducing the São Paulo exchange’s weekly decline to 2%. The central bank’s aggressive interventions, including a $3 billion spot auction today, have brought total currency market interventions to $23.75 billion since last week, helping to stabilize the Brazilian real. However, these actions also underscored growing fiscal risks, amplified by the Senate’s approval of a diluted PEC that weakened the government’s spending cuts and raised concerns over fiscal consolidation. Major banks led the rebound, with Banco Santander, Banco do Brasil, Itaúsa, and Bradesco rising 0.9% to 2.1%. Strong performers included Localiza, Rede D'Or, B3, Natura, Hypermarcas, and Lojas Renner, which surged 2.3% to 4.9%. In contrast, consumer non-cyclicals and industrial stocks faltered, with Ambev dropping 3.8% and WEG falling 1.9%.

Ibovespa Recovers

The S&P/TSX Composite Index gained 0.8% to close at 24,600 on Friday, snapping a six-day losing streak and partially trimming some of its 2.7% weekly plunge. Canadian stocks rebounded alongside their US counterparts, tracking a sharp recovery in Wall Street’s major indices as investors reassessed the Federal Reserve’s policy outlook. North American equities recovered following a softer-than-expected core PCE inflation reading, fueling hopes for less restrictive Fed policy. Bond yields fell, boosting interest rate-sensitive sectors like technology and financials. Shopify was a standout performer, up 1.7%, while RBC, Brookfield, and TD Bank rose between 0.6% and 1.4%. Gold-linked stocks also outperformed, with Agnico Eagle, Barrick Gold, and Franco-Nevada gaining 0.8% to 1.4%, driven by higher gold prices. In contrast, the energy sector faced continued pressure, with Suncor and Imperial Oil dropping 0.4% and 1.5%, respectively, amid concerns over potential US tariffs.

TSX Rebounds, Tracking Wall Street’s Recovery

US stocks bounced back on the last triple witching day of the year, with the S&P 500 up 1%, the Nasdaq rising 0.8% while the Dow gained 497 points. The rally followed cooler-than-expected inflation data, with November’s PCE index showing a 2.4% year-over-year increase, slightly below expectations. This helped alleviate market concerns sparked by the Federal Reserve’s forecast of fewer rate cuts in 2025. Sentiment was also weighed down by the threat of a government shutdown and global market pressure from tariff threats. The healthcare sector took the spotlight after Novo Nordisk’s new obesity drug missed targets in its test, driving the pharmaceutical giant’s ADRs to plunge 17.7%. In turn, equities for competitor Eli Lilly gained 1.4%. Considering the week, all the three major averages sank 2.3% with the Dow booked its worst week since 2023.

Wall Street Bounces on Friday

The CAC 40 fell 0.3% to close at 7,275 on Friday, extending sharp losses from the previous session and hitting its lowest level in nearly three weeks, as investor sentiment soured amid concerns over the potential impact of a second Trump administration, particularly the threat of imposing tariffs on the European Union unless member states increase purchases of American oil and gas. These remarks compounded worries over the interest rate outlook, further unsettling markets. On the domestic front, French producer prices surged by 3.2% month-over-month in November 2024, the highest increase since March 2022. Most stocks ended in negative territory, with Thales leading the losses, shedding 1.4%. Airbus and ArcelorMittal also declined, falling 1.1% and 0.9%, respectively. However, Vivendi, Teleperformance, and Renault helped limit the decline, with gains ranging from 1.2% to 2.4%. For the week, the CAC 40 posted a significant loss of 1.7%, marking its second consecutive weekly decline.

CAC 40 Drops on Tariff Threats

European stocks trimmed earlier losses but still closed lower on Friday, benefitting from more optimistic US equity markets in the European afternoon as investors reconsidered the impact of fewer rate cuts by the Federal Reserve. The Eurozone’s STOXX 50 eased 0.2% to close at 4,870, a 2% drop on the week. On the other hand, the STOXX 600 sank 0.8% to close at 503, pressured by the plunge for Novo Nordisk, the largest European company by market capitalization. The pharmaceutical giant closed 21% lower after test results showed that its new obesity drug missed the targets set by the company. Stocks were also pressured by threats of tariffs from US President-elect Trump should EU members not increase their purchases of oil and LNG from US companies. Financial services providers led the losses with ING, Munich Re, and Nordea dropping more than 1.6% each. On the other hand, consumer cyclicals limited the losses, with Inditex, Ferrari, and Volkswagen adding more than 1% each.

Novo Nordisk Plunges to Weigh on STOXX 600

The FTSE MIB trimmed sharp initial losses to close marginally down at 33,766.3 on Friday, its lowest since early December and marking a second consecutive day of declines. Traders reassessed the Fed's policy outlook after a softer-than-expected increase in the core PCE price index, the Fed’s preferred gauge of underlying inflation, during November. Meanwhile, market participants reacted to US president-elect Donald Trump's tariff threat to the EU, while also assessing the political turmoil in the US. Among individual stocks, Saipem (-6.1%) was the worst performer, hit by profit taking and the declines in crude oil. Telecom Italia also faced pressure (-3.7%), on the day of the first examination of the 700 million offer presented by the Treasury and Retelit for Sparkle.On the upside, Amplifon and Cucinelli led the gains, up 1.6% and 1.5%, respectively. For the week, the FTSE MIB shed about 3.2%.

Italian Stocks End Marginally Down, Post Weekly Decline

The FTSE 100 pared early losses to close slightly down at 8,085 on Friday, notching a second consecutive session of declines and a 2.6% drop for the week. Concerns over slower rate cuts by the Federal Reserve, signs of economic stagnation in the UK, and the looming threat of a US government shutdown all weighed on investors' minds. Market sentiment was further undermined by a warning from US President-elect Donald Trump regarding potential tariffs on the European Union. In the UK, the latest data revealed a smaller-than-expected increase in retail sales, while borrowing figures came in better than anticipated. On the corporate side, Severn Trent and United Utilities Group continued to head up the fallers of the day, down 2.3% and 1.7%, respectively. Contrastingly, Frasers Group led risers, up 2.8% as shareholders appeared to breathe a sigh of relief at the end of a spat with Boohoo Group.

UK Stocks End Lower, Post Weekly Loss

US stocks recovered from early losses to trade firmly higher on Friday as markets reconsidered the impact that fewer rate hikes by the Federal Reserve next year may have on corporate returns. All three major indices recovered from 1% losses to hover 1.5% higher, tracking the sharp rebound for Treasury securities. The jump marked a reversal from the equity selloff earlier in the week after FOMC members projected fewer rate cuts by the central bank next year, reflecting an overreaction to the hawkish signals. The rebound was further supported by bets that the Fed may still make policy less restrictive after a softer-than-expected increase in the core PCE price index during November, the Fed’s preferred gauge of underlying inflation. The healthcare sector took the spotlight after Novo Nordisk’s new obesity drug missed targets in its test, driving the pharmaceutical giant’s ADRs to plunge over 20%. In turn, equities for competitor Eli Lilly surged 5%.

US Stocks Rebound Sharply

BVPSI increased to a 6-year high of 466.61 Index Points. Over the past 4 weeks, Bolsa de Valores de Panama General Index gained 2.36%, and in the last 12 months, it increased 17.06%.

Stocks in Panama Hit 6-year High

The S&P/TSX Composite Index edged lower below the 24,414 mark on Friday, marking its seventh consecutive session of losses and setting the Toronto exchange for a weekly plunge of around 3.5% as the economy struggles with persistent price pressures and subdued growth. The outlook remains bleak, as expectations grow that the Bank of Canada may continue cutting rates in response to weak economic performance, while core inflation, as measured by the trimmed-mean, remained steady at 2.7% in November. The Canadian government recently lowered its GDP growth projections, revising 2025 to 1.7% from 1.9% and 2026 to 2.1% from 2.2%. Moreover, Finance Minister Chrystia Freeland's resignation, following concerns about U.S. tariff policies, has intensified market unease. Mega cap e-commerce giant Shopify led the decline with losses of 1.7%, while energy producers also lagged, particularly Imperial Oil shedding 1.5%. Conversely, major mining equities limited the decline amid rising gold prices.

TSX Struggles for Direction, Poised for Weekly Plunge

US stocks extended their losses on Friday amid sustained concerns that the Federal Reserve will maintain interest rates at high levels next year, hampering the outlook on corporate returns. The S&P 500 dropped 0.7% and the Nasdaq fell 1% despite rebound for Treasuries. The Dow dropped more than 200 points after marginally avoiding an 11-session plunge yesterday. This was despite a batch of new data favoring a backdrop that could warrant more rate cuts by the Fed next year, as core PCE prices rose by a softer-than-expected 0.1% in November, the least since May. Healthcare stocks took the spotlight after Novo Nordisk failed to meet targets in its new weight loss drug, sending its ADRs to plunge more than 20%. In turn, competitor Eli Lilly, the largest US pharmaceutical company, rose by over 6%. Stocks remained under pressure from signals of fewer rate cuts next year by the FOMC, driving all three main indices to be on course for weekly losses of over 3.5%.

US Stocks Extend Losses

The Ibovespa edged below the flatline around the 121,100 level on Friday, setting the São Paulo exchange for a weekly plunge of over 2.8% and the lowest levels since June, as Brazilian assets experienced a sharp selloff amid lingering fiscal concerns. The central bank’s aggressive actions, including today’s $3 billion spot auction, bringing total interventions to $23.75 billion since last week, the interventions effectively halted the sharp selloff in the Brazilian currency. While easing liquidity pressures, these actions also highlighted mounting fiscal risks, compounded by the approval of a watered-down PEC in the Senate, which weakened the government's spending cut package and left doubts about fiscal consolidation. Consumer non-cyclicals and industrial equities led the decline, with heavyweight Ambev at the bottom, losing over 5%, followed by mega-cap WEG, which dropped more than 2%. Other notable losses were seen in JBS, Suzano, and BRF, which were down between 1.7% and 2.3%.

Ibovespa Hits Multimonth Lows as Fiscal Worries Weigh on Markets

LuxX decreased to a 26-month low of 1273.00 Index Points. Over the past 4 weeks, Luxembourg Stock Exchange lost 5.18%, and in the last 12 months, it decreased 16.37%.

Stocks in Luxembourg Hit 26-month Low

European stocks extended their losses on Friday, pressured by sustained hawkish outlook for the Federal Reserve and a plunge for Novo Nordisk, the largest company by market capitalization up until this week. The STOXX 50 dropped 1.4% to hover at 4,825, setting up a 3% drop on the week, while Novo Nordisk pressured the STOXX 600 to fall 1.7% to 498, a 3.5% plunge on the week. The pharmaceutical giant responsible for Ozempic sank up to 27% before paring losses to the 21% after its new obesity shot did not meet expectations in a key test. Stocks were also pressured by threats of tariffs from US President-elect Trump should EU members not increase their purchases of oil and LNG from US companies. Regarding the major Eurozone stocks, ASML fell 2.5% to extend the poor momentum for the tech sector, while BBVA, Intesa Sanpaolo, and ING lost more than 2% to set the pace for banks.

STOXX 600 Falls Amid Novo Nordisk Plunge

United Kingdom Stock Market Index (GB100) decreased below 8000 points.

United Kingdom Stock Market Index (GB100) below 8000

Stock futures in the US pared some losses on Friday, with contracts on the S&P 500 futures falling 0.6%, the Nasdaq 100 sinking 1% and the Dow Jones losing about 140 points, after PCE inflation came below forecasts. Both headline and PCE prices rose less than anticipated last month and the annual rates were also below forecasts, offering investors some relief about inflationary pressures. On the other hand, traders were getting increasingly concerned about a partial government shutdown that could happen as soon as Friday night. The House failed to approve a Trump-backed funding plan to extend government operations for three months and suspend the debt ceiling for two years. On the corporate front, shares of Tesla sank about 1.8% in premarket trading and Nvidia was down 0.7%. Also, Nike plunged 5% before the opening bell after reporting its third consecutive quarterly sales decline. On the week, the S&P 500 and the Dow Jones are down more than 3% and the Nasdaq is off 2%.

US Futures Pare Some Losses After PCE

The BSE Sensex lost ground to close about 1.5% down at 78,041.6 on Friday, the lowest level in a month and marking its fifth consecutive session of losses. The decline was broad-based, led by rate-sensitive IT stocks and heavyweight financials. Market sentiment remained subdued due to the prospect of fewer rate cuts by the Federal Reserve next year and sustained foreign outflows. Meanwhile, traders looked ahead to the release of the US PCE price index for November later today, the Fed’s preferred inflation measure, for more insights into the rate path. For the week, the Sensex shed nearly 5%, halting four consecutive weeks of gains.

Sensex Dips for 5th Day, Books Weekly Loss

Stock futures in the US moved lower on Friday, with contracts on the S&P 500 futures falling 0.7%, the Nasdaq 100 sinking 1.3% and the Dow Jones losing about 190 points, following a lacklustre session the day before. Investors are growing increasingly uneasy after the House failed to approve a Trump-backed funding plan to extend government operations for three months and suspend the debt ceiling for two years. Without an agreement, a partial government shutdown is set to commence late Friday night. In addition, traders eagerly await the PCE report due today for further clues on how inflationary pressures are evolving, after the Fed revised its headline and core PCE inflation projections up. On the corporate front, shares of Tesla sank about 5% in premarket trading and Nvidia was down 2.4%. Also, Nike plunged 4% before the opening bell after reporting its third consecutive quarterly sales decline.

US Futures Fall Sharply

The MOEX Russia Index soared to toward the 2,550 mark on Friday, extending the rebound from the 21-month low of 2,377 touched this week after the unexpected pause in the Bank of Russia’s tightening cycle, aligned with the impact of a weaker ruble. The decision preceded reports that CBR Governor Nabiullina met with politicians and business leaders that have warned the central bank against warning interest rates. Despite the hold, the central bank raised inflation forecasts. The index is due to close the year nearly 20% down, pressured by the impact of more sanctions from Western countries and a weaker Chinese economy, which limited demand for Russian goods from its main client. Additionally, Russian assets were also pressured by sanctions on the Moscow Exchange, which hampered ruble trading and limited the financing availability from key Middle Eastern and Asian investors. Gazprom traded at a record low, and Sberbank and Lukoil traded near their lowest since mid 2023.

Russian Stocks Surge After Bank of Russia Hold

Copenhagen decreased to a 16-month low of 1996.00 Index Points. Over the past 4 weeks, Denmark Stock Market Index (Copenhagen) lost 13.11%, and in the last 12 months, it decreased 12.08%.

Stocks in Denmark Hit 16-month Low

In Mumbai,  the SENSEX Index fell 1127 points or 1.42 percent on Friday. Leading the losses are Ltimindtree Ltd (-6.37%), Tech Mahindra (-3.89%) and Indusind Bank (-3.62%).

The SENSEX Index Closes 1.42% Lower

The DAX dropped 1.3% to trade around the 19720 level on Friday, the lowest in about three weeks, and retreating further form the record high touched early in the month. Concerns mounted over the potential impact of a second Trump administration on Europe after Donald Trump threatened to impose tariffs on the European Union if member states do not increase purchases of American oil and gas. Adding to the turmoil, political instability in the US deepened as the House of Representatives rejected a Trump-backed funding plan, setting the stage for a partial government shutdown starting Friday night. Deutsche Bank (-2.9%) was the worst performer, followed by Daimler Truck (-2.3%) and Commerzbank (-1.7%). On the week, the DAX is down about 2.1%.

DAX Loses Over 1%

The FTSE MIB fell 1% to around 33,443 in early trading on Friday, extending sharp losses from the previous session and reaching its lowest level since early December. The index mirrored declines across European markets after US president-elect Donald Trump threatened the European Union with new tariffs unless member states increased their purchases of US oil and gas. Additionally, traders are assessing political turmoil in the US following the failure of a Trump-backed spending bill that would have prevented a government shutdown. All major Italian stocks were in the red, with notable losses from Tenaris (-2.1%), UniCredit (-1.9%), Intesa Sanpaolo (-1.8%), Stellantis (-1.7%), and Eni (-1.4%).

Italian Stocks Nearing 3-Week Lows

The CAC 40 plunged 1.3% to 7,202 on Friday, extending sharp losses from the previous session and hitting its lowest level in nearly three weeks. Investor sentiment soured amid concerns over the potential impact of a second Trump administration on Europe, with threats of imposing tariffs on the European Union if member states do not increase purchases of American oil and gas. These remarks compounded concerns over the interest rate outlook, further unsettling markets. On the domestic front, French producer prices surged by 3.2% month-over-month in November 2024 from 0.9% in the previous month, marking the highest reading since March 2022. All stocks were in negative territory, with Vivendi leading the losses, plummeting 2.3%. Thales and ArcelorMittal also declined, falling 2.1% and 2%, respectively. Over the week, the index is on track for a significant decline, marking its second consecutive weekly loss.

French Stocks Fall to Near 3-Week Low

The FTSE 100 dipped to around 8,050 on Friday, marking a second consecutive session of declines and heading for a nearly 3% drop for the week. Investors remained cautious ahead of the release of crucial US PCE inflation data later in the day, while ongoing political uncertainty in the US also weighed. Market sentiment was further undermined by a warning from US President-elect Donald Trump regarding potential tariffs on the European Union. On the domestic front, UK government borrowing dropped to its lowest level for November in three years last month. Among equities, Standard Chartered and United Utilities Group led the losses, down around 1.5% each, along with Barclays.

UK Stocks Extend Losses

The STOXX 50 lost 1% to trade at three-week lows and the STOXX 600 dropped 0.9% to low levels not seen in about a month on Friday, as concerns mounted over the potential impact of a second Trump administration on Europe. Former President Donald Trump threatened to impose tariffs on the European Union if member states do not increase purchases of American oil and gas. Adding to the turmoil, political instability in the US deepened as the House of Representatives rejected a Trump-backed funding plan, setting the stage for a partial government shutdown starting Friday night. All sectors were in the red. On the week, the STOXX 50 is down 1.8% and the STOXX 600 fell 1.9%.

European Shares Fall to Near 1-Month Lows

The Hang Seng fell 32 points or 0.2% to end at 19,721, reversing gains from earlier deals as most sectors retreated. Markets ended in the red for the second session, down by 1.3% for the week which was the first decline in four amid a sharp pullback in US futures ahead of the Fed’s preferred inflation data later today. Cautious investors continued to assess the potential impact of fewer rate reductions in the US next year, following three cuts this year. In the mainland, the PBoC maintained its key lending rates at record lows, in line with market consensus. Some biggest laggards included Kuaishou Tech (-5.4%), KE Holdings (-3.2%), Want Want China Holdings (-3.0%), and Innovent Biologics (-2.2%). In contrast, Semiconductor Manufacturing surged over 8%, after the US asked Nvidia to investigate how its products ended up in China over the past year. Tencent Holdings Ltd. climbed 2.7%, after launching a new gifting feature on its WeChat platform.

Hang Seng Falls 1.3% Weekly

Helsinki 25 decreased to a 13-month low of 4211.00 Index Points. Over the past 4 weeks, Finland Stock Market Index (Helsinki 25) lost 2.47%, and in the last 12 months, it decreased 5.96%.

Stocks in Finland Hit 13-month Low

In Frankfurt,  the DAX Index is losing 205 points. Losses were led by Deutsche Bank (-2.35%), Daimler Truck Holding AG (-1.59%) and RWE (-1.48%).

The DAX Index Opens 1.03% Lower

In Paris,  the CAC 40 Index is falling 77 points. Losses were driven by Vivendi (-2.45%), ArcelorMittal (-1.91%) and Thales (-1.72%).

The CAC 40 Index Opens 1.05% Lower

Chinese stocks ended nearly flat on Friday, with the Shanghai Composite slipping 0.06% to 3,368 and the Shenzhen Component edging down 0.02% to 10,647, as investors reacted to the latest policy decision from the People’s Bank of China. The central bank left its one- and five-year loan prime rates unchanged at 3.1% and 3.6%, respectively, in line with market expectations. Despite this, investors are still anticipating additional policy support in 2025, including further rate cuts, reductions in banks' reserve requirements, and stronger fiscal measures. Earlier this month, Chinese officials committed to "more proactive" fiscal measures and a "moderately" looser monetary policy next year to boost economic growth, signaling a shift away from the more cautious approach of the past decade. For the week, the Shanghai and Shenzhen indexes lost 0.7% and 0.62%, respectively.

China Stocks End Flat as PBOC Keeps Rates Unchanged

European equity markets were set to open lower on Friday, extending losses from the previous session as the US Federal Reserve's hawkish stance continued to weigh on global equity markets. In contrast, the Bank of England took a dovish pause on Thursday, providing some relief. Investors were also awaiting a series of economic data releases across Europe, including UK retail sales, French producer inflation, and Italian business and consumer confidence indicators. On the corporate front, British cruise company Carnival was scheduled to report its latest earnings. In premarket trading, Euro Stoxx 50 and Stoxx 600 futures were down 0.2% and 0.3%, respectively.

European Markets Poised for Lower Open

The Nikkei 225 Index dropped 0.29% to close at 38,702, while the broader Topix Index fell 0.44% to 2,702 on Friday, marking the sixth consecutive session of losses as investors reacted to stronger-than-expected inflation data. Japan's headline inflation rate rose to a three-month high of 2.9% in November, up from 2.3% in October, while the core inflation rate increased to 2.7%, surpassing market expectations of 2.6%. These figures support a hawkish outlook for Bank of Japan (BOJ) monetary policy. However, the BOJ chose to keep rates unchanged at its December meeting, citing the need to assess wage trends, global economic uncertainties, and the policies of the incoming US administration. Technology, industrial, and consumer stocks led the decline. Over the week, the Nikkei and Topix indexes lost 1.95% and 1.62%, respectively.

Japanese Shares Dip on Strong Inflation Data

Equities in India fell 128 points, or 0.2%, to 79,090 in morning trade on Thursday, marking its fifth consecutive session of losses, while lingering at its lowest level in three weeks, driven primarily by declines in financial services, banking sectors, and realty stocks. The BSE Sensex tracked Wall Street's S&P and Nasdaq overnight drop as investors continued to study the potential impact of a hawkish Federal Reserve outlook on corporate returns in the coming year. Ongoing foreign outflows continued to pressure the index due to a strengthening US dollar and a rise in Treasury yield, with the index on track for a weekly decline of around 3.7% after rising in the previous week. The Nifty 50 shrank 0.1% to below 24,000, mainly weighed by Axis Bank (-2.2%), Tech Mahindra (-1.7%), Ultratech Cement (-1.5%), Mahindra & Mahindra (-0.9%), and IndusInd Bank (-0.8%).

India Stocks Head for Steep Losses Weekly

New Zealand's benchmark S&P/NZX 50 index rose 1.2% to close at 12,904 on Friday, snapping a two-day losing streak. The worse-than-expected contraction in the New Zealand economy led investors to fully price in an outsized 50bps cut at the Reserve Bank’s next meeting in February. Meanwhile, latest data revealed the country’s trade deficit narrowed in November, driven by a rise in exports while imports declined. Additionally, the ANZ-Roy Morgan survey showed consumer confidence improved in December. On the corporate front, Meridian Energy was the best performing stock, surging 5.4% after partnering with Nova Energy to operate the Te Rahui solar farm at Rangitaiki near Taupo. Other top performers included Infratil, which gained 4.8%, and Port of Tauranga, up 4.6%. For the week, the index advanced 1.2%, ending two consecutive weeks of losses.

New Zealand Shares Rebound

SENSEX decreased to a 4-week low of 78843.00 Index Points. Over the past 4 weeks, SENSEX gained 2.28%, and in the last 12 months, it increased 11.36%.

Stocks in India Hit 4-week Low

Chinese stocks gained on Friday, with the Shanghai Composite up 0.3% to around 3,380 and the Shenzhen Component rising 0.4% to 10,690, recovering losses from the previous session. The rally followed the latest policy decision by the People’s Bank of China, which kept its one- and five-year loan prime rates unchanged at 3.1% and 3.6%, respectively, in line with market expectations. Despite this, investors continue to anticipate further policy support in 2025, including additional rate cuts, further reductions in banks' reserve requirements, and stronger fiscal measures. Earlier this month, senior Chinese officials committed to implementing "more proactive" fiscal measures and a "moderately" looser monetary policy next year to stimulate economic growth, signaling a departure from the more cautious approach of the past decade. Technology stocks led the gains, with notable rises from IEIT Systems (+1.5%), Accelink Technology (+10%), and Cambricon Technologies (+3.1%).

China Stocks Rise as PBOC Holds Rates Steady

The equity market in Hong Kong rose 34 points or 0.2% to 19,786 in Friday morning deals, after closing modestly lower in the previous session. Investors reacted to the monthly fixing of key lending rates in China, with the PBoC maintaining them at record lows, as expected. For the week, however, the Hang Seng is on track to fall for the first time in four weeks, down around 1% so far, dragged by expectations of fewer rate reductions in the US next year.

Hong Kong Stocks Rise Slightly but Face Weekly Decline

The benchmark KOSPI shed 1.1% to around 2,410 points on Friday, extending losses from the previous session, dragged down by sharp losses from nearly all sectors as hawkish signals from the US Federal Reserve continued to weigh on sentiment. Domestically, investors continue to monitor the deepening political strife, with the acting leader vetoing opposition bills amid disputes over Prime Minister Han's authority after Yoon's impeachment. On the economic data front, South Korea's producer prices climbed to 1.4% year-on-year in November, up from 1% in October, reaching its highest level since August. Most index heavyweights lost ground, led by chip and finance stocks, with Samsung Electronics dropping 1.7%, while its peer SK Hynix tumbled 3%. Among financials, KB Financial (-0.8%), Shinhan Financial (-1.4%), and Hana Financial (-2.6%) led the losses. For the week, the benchmark index is set to lose more than 3%.

South Korean Shares Extend Losses

The Nikkei 225 Index climbed 0.3% to above 38,900, while the Topix Index gained 0.15% to 2,717 on Friday, as the yen slid to a five-month low, losing around 5% over the past two weeks. A weaker yen enhances the profit outlook for Japan’s export-driven industries and supports yen carry trades. Meanwhile, investors reacted to data showing Japan’s headline inflation rate accelerated to a three-month high of 2.9% in November, up from 2.3% in October. The core inflation rate also rose to a three-month high of 2.7%, surpassing market expectations of 2.6%. Earlier this week, the Bank of Japan held interest rates steady as policymakers needed time to assess wage trends, uncertainties of overseas economies and the next US administration's policies. Notable gains were seen among export-focused companies, including Toyota Motor (+2.7%), Honda Motor (+0.5%), and Sony Group (+2.9%). Despite Friday’s gains, the Nikkei and Topix indexes are on track to end the week down by around 1%.

Japanese Shares Rise on Weaker Yen

The S&P/ASX 200 Index dropped 1.1% to below 8,080 on Friday, marking its lowest level in seven weeks, as hawkish signals from the US Federal Reserve continued to pressure global equity markets. The benchmark index is also set to lose nearly 3% this week, posting its third consecutive weekly decline. Weaker commodity prices and economic concerns in China—Australia’s largest export market—further weighed on local shares. Domestically, investors turned their attention to the upcoming release of the Reserve Bank of Australia’s meeting minutes, following its decision to keep rates unchanged at 4.35%. As signs of slowing economic activity emerge, market participants have adjusted their expectations, bringing forward the anticipated timing of the first RBA rate cut. On Friday, major financial, healthcare, and consumer stocks led the downturn, with notable losses from Commonwealth Bank (-2.6%), CSL Ltd (-1.1%), and Wesfarmers (-2.3%).

Australian Shares Fall to 7-Week Low

US stock futures were little changed on Friday as investors braced for the upcoming PCE price index report, the Federal Reserve’s preferred measure of inflation. Fed Chair Jerome Powell stated this week that the PCE is likely to show the 12-month inflation rate remains above the central bank’s 2% target. His comments followed the Fed’s widely expected quarter-point rate cut, but the central bank indicated fewer reductions in 2025 due to persistent inflation. In after-hours trading, FedEx surged 8% on strong quarterly results, while Nike reversed an initial rally after its earnings report. On Thursday, during regular trading, the Dow inched up 0.04%, breaking a 10-day losing streak, the longest since 1974. Meanwhile, the S&P 500 and Nasdaq Composite both fell, shedding 0.09% and 0.1%, respectively. All three major indices are on track to end the week with significant losses following the Fed’s hawkish shift.

US Futures Flat Ahead of PCE Inflation Data

Shares in New Zealand were flat at 12,755 in early trade on Friday, following losses in the prior two sessions. Gains in process industries and non-energy minerals were countered by losses in energy minerals and consumers. For the week, markets were muted following losses in the prior two periods.

New Zealand Stocks Set to Close Week on Muted Note

The Ibovespa gained 0.3% to close at 121,188 on Thursday, as investors seized opportunities for bargain-hunting after the previous day’s sharp 3.2% drop, particularly in the battered consumer discretionary sector. The central bank’s proactive intervention, selling $5 billion in a second spot auction, alleviated fears of further depreciation of the real and helped restore investor confidence. Stocks like Localiza, Natura, Hapvida, Lojas Renner, Atacadao, and Magazine Luiza surged between 3.7% and 9.3% on optimism over rising consumer spending. However, lingering concerns about Brazil’s fiscal situation, high interest rates, and inflationary pressures continued to weigh on sentiment. Investors remain focused on fiscal reforms and clarity for a sustainable recovery in Brazilian equities.

Ibovespa Rebounds After Sharp Selloff

The S&P/TSX Composite Index fell 0.6% to close at 24,414 on Thursday, marking its sixth consecutive session of losses as declines in heavyweight tech, industrials, and commodity producers weighed on the market. Shopify led the tech sector lower, dropping 2.7%, while Canadian Pacific Railway fell by 3%. Energy producers Suncor, Imperial Oil, Canadian Natural, and Cenovus also underperformed, with losses ranging from 0.8% to 2.8%, tracking a downturn in oil prices. Mining stocks also faced pressure, as Agnico Eagle, Barrick Gold, and Wheaton Precious declined between 0.8% and 2.1%. Investor sentiment remained fragile following the U.S. Federal Reserve’s projection of a slower pace of interest rate cuts in 2025. Adding to concerns, Finance Minister Chrystia Freeland’s unexpected resignation ahead of the fall economic update raised fears over fiscal stability and mounting deficits.

TSX Extends 6-Day Loss Streak

Wall Street closed little changed on Thursday following the previous day's selloff as investors evaluated the potential impact of a hawkish Federal Reserve outlook on corporate returns in the coming year. The S&P 500 and the Nasdaq 100 closed 0.1% and 0.5% lower respectively, while the Dow added 14 points, snapping a ten-session losing streak. While the Fed cut its funds rate by 25 basis points as expected, its Summary of Economic Projections indicated that policymakers anticipate no more than two rate cuts in 2025. This hawkish outlook suggested a recalibration of risks between persistent inflation and a softening labor market, supported by data released today. The final GDP estimate for Q3 was revised higher, showing a 3.1% annualized growth rate, while initial jobless claims fell more than anticipated. Utilities, financial and tech stocks led the gains, with Nvidia (1.7%), Apple (1%), and Amazon (1.5%) rising. Conversely, Micron shares dropped 16.5% following disappointing guidance.

US Stocks Close Mostly Flat After Fed Day Tumble

US stocks trimmed their rebound from yesterday's selloff on Thursday as market assessed the impact that a hawkish Fed may have on corporate returns next year. The S&P 500 inched 0.3% up and the Dow was about 150 points higher, on course to halt a ten-session losing streak. The Fed lowered its funds rate by 25bps yesterday, as expected, but its Summary of Economic Projections signaled that FOMC members do not expect to deliver more than two rate cuts next year. The hawkish projection indicated that policymakers recalibrated their balance of risks between stubborn inflation and a softening labor market, underscored by data released today. The GDP was revised higher in its final estimate to show a 3.1% annualized expansion in Q3, while initial jobless claims tumbled more than expected. Tech led the gains with Nvidia, Apple, and Amazon rising. On the other hand, Micron sank 15% on an underwhelming guidance, driving the Nasdaq 100 to underperform and hover around the flatline.

US Stocks Trim Rebound

IPC decreased to a 13-month low of 49458.00 Index Points. Over the past 4 weeks, IPC Mexico lost 1.36%, and in the last 12 months, it decreased 13.08%.

Stocks in Mexico Hit 13-month Low

The FTSE MIB closed deeply in the red at 33,787 on Thursday, posting its biggest daily decline since November 12th with nearly a 2% loss, underperforming its European peers. Traders weighed hawkish signs from the Federal Reserve and kept an eye on corporate news. The Fed implemented the expected quarter-point rate cut on Wednesday but now forecasts only two more rate reductions next year, down from four in September. On the corporate front, Telecom Italia tumbled to the bottom of the index, down nearly 8%, after the Ministry of Economy and Finance together with Retelit, a subsidiary of Asterion Industrial Partners, presented the binding offer to acquire the entire capital of Sparkle. STMicroelectronics dropped 6.3%, partly due to Micron's poor outlook on Wall Street. Meanwhile, Saipem rose 3.4%, despite falling oil prices, buoyed by news of a $900 million offshore contract in Nigeria. Campari, the only other gainer, added 1.1%.

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