Global and Chinese indexes ended higher, with US stocks closing in green on Friday as Dow industrials and Nasdaq Composite built momentum after the positive comments from the US Federal Reserve. All the frontline indexes closed with weekly gains, as all 3 indexes increased by minimum ~2.5%. Dow Jones saw a record Thursday as a result of Wednesday’s dovish messages from the Chairman of the US Fed. Later on, on Friday, the index added a bit more. The Dow saw the addition of ~0.2% on Friday, while S&P 500 closed on the flat note. The Nasdaq increased by ~0.4%, seeing its highest close since the month of January 2022.
Benchmark 10-year yield closed at ~3.927% on Friday, as it wrapped up largest one-week yield decline in over a year. German and Italian yields declined post surveys of the eurozone economic activity. Stoxx 600 index closed near to 52-week high. Since Global and Chinese indexes ended higher, for a change, the Chinese indexes added gains as the Chinese equities took cues from the global momentum.
Growth in Chinese equities was the result of the recent data related to the Chinese economy. With recovery in the Chinese equities underway, the country has plans to speed this up with the help of certain stimulus measures. These measures include larger business loans from People’s Bank of China, declined in down payments resulting from home purchases and increasing maximum mortgage length from 25 years to 30 years. In the same vein, China also saw slew of other economic data points from November. This included largest industrial output expansion China saw since the month of February 2022. Industrial output increased to 21-month-high to sit at 6.6% from the year ago in the month of November, exhibiting as rise from 4.6% in October and exceeded the expectations. However, retail sales missed the analysts’ expectations, as 10.1% year-over-year gain was boosted by the softer year-ago data.
Coming to the Chinese stocks, companies including Alibaba, JD.com, and Baidu continue to rise early Friday post the release of mixed economic data and new stimulus measures. China-influenced commodities stocks such as Freeport-McMoRan and miners including Rio Tinto and BHP Group saw continuation of their recent momentum as a result of weak dollar after the critical Fed meeting.
People’s Bank of China will offer ~800 billion yuan (~$112.40 billion) in one-year loans to the financial system which should support the overall economy.
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