European Stocks Open Higher
European markets opened on a positive note following Wall Street’s strong finish last week. Key indices showed gains as investor confidence remained strong across the region:
- Germany’s DAX: Increased by 1.2% to 19,440.95
- France’s CAC 40: Rose by 1.1% to 7,418.83
- UK’s FTSE 100: Gained 0.7%, reaching 8,129.57
Asian Markets React to China’s Stimulus Package
Asian markets saw mixed results as China’s recently announced stimulus package failed to meet investors’ high expectations:
- Hong Kong’s Hang Seng: Dropped by 1.5% to 20,426.93
- South Korea’s Kospi: Fell by 1.2% to 2,531.66
- Japan’s Nikkei 225: Closed with a slight 0.1% gain at 39,533.32
- Australia’s S&P/ASX 200: Declined by 0.4% to 8,266.20
China’s Stimulus Package and Slowing Inflation
China announced a 6 trillion yuan ($839 billion) stimulus package, aimed at supporting local government debt relief. While significant, the stimulus fell short of expectations, focusing more on debt management than economic growth. Additionally, China’s inflation rate slowed to 0.3% year-on-year in October, its lowest in four months, according to the National Bureau of Statistics.
Wall Street Ends Best Week in a Year
Wall Street saw a record-setting week, with major indices closing strong:
- S&P 500: Increased by 0.4% to 5,995.54, marking its highest weekly gain since November 2023
- Dow Jones Industrial Average: Rose by 0.6% to 43,988.99
- Nasdaq Composite: Added 0.1% to reach 19,286.78
U.S. Bond Market Sees Decline in Yields
Longer-term U.S. Treasury yields eased slightly on Friday:
- 10-year Treasury Yield: Dropped to 4.30% from 4.33%, as economic resilience in the U.S. helped stabilize rates despite recent interest rate cuts by the Federal Reserve.
Oil and Currency Markets Update
- U.S. Benchmark Crude Oil: Fell by 8 cents to $70.30 per barrel
- Brent Crude: Decreased by 20 cents to $74.07 per barrel
- Currency Movements: The U.S. dollar rose to 153.79 yen, while the euro edged down to $1.0684.
