Global markets ended the week lower on Friday as renewed concerns over high-tech valuations, slowing growth in China, and fading hopes for December rate cuts weighed on sentiment. Wall Street steadied after Thursday’s sell-off, but Europe and Asia saw broad declines, with technology and rate-sensitive sectors leading losses.
Wall Street steadies after Thursday’s sell-off as traders eye Fed outlook
US stocks clawed back from early losses on Friday, recovering some ground after Wall Street’s steepest sell-off in over a month as investors positioned ahead of key economic data and the Federal Reserve’s December rate decision. The DOW fell -0.7%, while the S&P 500 slipped -0.1% and the NASDAQ inched up +0.1%. Big tech remained under pressure amid fading hopes of a near-term rate cut, and renewed caution over AI spending weighed on growth names. President Trump signalled plans to cut tariffs on key imports such as bananas and coffee to help ease food inflation, alongside new trade deals with Latin American partners. Walmart edged -0.1% lower after announcing that CEO Doug McMillon will retire in January, with US operations chief John Furner set to succeed him. Meanwhile, Warner Bros Discovery gained +4.0% after reports that Paramount, Comcast, and Netflix are preparing rival takeover bids. Bitcoin extended declines as nearly US$900 million was pulled from crypto investment funds. The US two-year yield added +2bp to 3.608%, while the 10-year yield gained +4bp to 4.150%.
European stocks slide as tech and policy concerns hit sentiment
European equities fell sharply on Friday as confidence weakened amid concerns over high-tech valuations and global monetary policy. The STOXX 600 dropped -1.0%, with the UK’s FTSE 100 down -1.1%, Germany’s DAX off -0.7%, and France’s CAC 40 losing -0.8%. UK stocks underperformed as rising bond yields and speculation that Chancellor Rachel Reeves may alter budget plans raised fiscal worries. Tech led declines, with Infineon (-1.6%), SAP (-3.2%), and BE Semiconductor (-1.8%) weakening after SAP offered concessions to settle an EU antitrust probe. Novo Nordisk slipped -2.4% after yet another board shake-up, while Siemens Energy surged +9.4% after posting a Q4 net profit of €168 million, reversing prior losses.
Asian markets tumble as tech sell-off and rate fears weigh
Asian equities fell sharply on Friday, tracking Wall Street lower as concerns over stretched tech valuations and uncertainty about the US economic outlook hit sentiment. China’s Shanghai Composite dropped -1.0% and Hong Kong’s Hang Seng tumbled -1.8% after a mixed batch of Chinese data signalled slowing momentum in October, with industrial production rising only +4.9% and fixed asset investment falling -1.7% year-on-year. Japan’s Nikkei 225 sank -1.8% as investors took profits, while South Korea’s Kospi plunged -3.8% despite news that the US would ease tariffs on Korean autos and semiconductors. Australia’s ASX 200 slumped -1.4% as elevated rate expectations and China growth worries fuelled broad selling, with WiseTech (-4.6%) and Xero (-3.9%) leading declines. New Zealand’s NZX 50 fell -1.0% to a two-week low, extending losses from the prior session amid global risk aversion.
Oil rises while gold and iron ore fall
The WTI crude rose +2.4% to US$60.09/bbl, gold fell -2.2% to US$4,079.25/oz, and iron ore inched down -0.2% to US$103.95/MT.
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- Food Price Index (Stats NZ)