USA
U.S. stock markets experienced a strong rally during the week, with the Dow Jones Industrial Average reaching a record high of 44,296.51 on November 22, marking its 44th record close of the year. The S&P 500 and Nasdaq Composite also posted weekly gains of 1.7% each. Key economic data included the release of the Conference Board's Consumer Confidence Index, which rose for the second consecutive month, signaling robust consumer sentiment. Additionally, the Federal Reserve released minutes from its recent meeting, revealing a cautious approach to future interest rate adjustments in response to moderating inflation. In the political arena, President-elect Donald Trump announced the nomination of Scott Bessent as the next Treasury Secretary. Bessent's extensive Wall Street experience is expected to ease investor concerns regarding tax cuts and tariffs. This announcement contributed to a decline in U.S. Treasury yields and a weaker dollar, ultimately benefiting stock index futures.
Europe
European markets displayed mixed results during the week. The pan-continental Stoxx Europe 600 index remained relatively flat, while performance varied across individual markets. The Eurozone's Composite Purchasing Managers' Index (PMI) fell to 48.1, signaling economic contraction. This decline was attributed to looming threats of higher U.S. tariffs and political uncertainties in key Eurozone countries. The European Central Bank (ECB) faced mounting pressure to ease monetary policy further, with potential rate cuts anticipated in December. Adding to these challenges, political instability in countries such as France and Germany exacerbated concerns about the region's economic outlook.
Japan
Japanese stock markets faced declines, with the Nikkei 225 Index dropping 0.93% and the broader TOPIX Index falling 0.56%. While the Japanese government maintained its outlook for a moderate economic recovery, it highlighted concerns over potential impacts from U.S. trade policies under the incoming administration. Additional risks, such as rising international interest rates and a stagnant Chinese real estate market, further clouded the economic outlook. Uncertainties surrounding proposed U.S. tariffs on products from key trading partners posed a significant threat to Japan's export-driven economy.
China
Chinese markets experienced declines amid ongoing U.S.-China tensions, driven by the announcement of new export restrictions planned by the Biden administration, which weighed heavily on investor sentiment. The Shanghai Composite Index fell by 1.91%, while the Hong Kong Hang Seng Index declined by 1.01%. Economic data highlighted persistent challenges in China's economic activity, with concerns over a prolonged property downturn overshadowing sign of improvement in other sectors. The announcement of new U.S. export restrictions further exacerbated market declines, reflecting investor apprehension about escalating trade tensions and their potential impact on China's economic growth.