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Highlights
- US markets recover after holiday trading; technology and energy stocks lead gains.
- Australian market set to rise; focus on Chinese manufacturing and domestic CPI data.
- Commodities and currencies see mixed performance amid global economic signals.
US markets experienced a positive session on Friday, marking their first gains since the holiday break. The Dow Jones climbed by 0.8%, while the S&P 500 and Nasdaq gained 1.3% and 1.8%, respectively. Technology stocks were at the forefront, with Nvidia (NASDAQ:NVDA) surging 4.5%, and Tesla (NASDAQ:TSLA) soaring over 8%. Microsoft (NASDAQ:MSFT) also advanced after revealing an $80 billion AI investment. Energy companies such as Constellation Energy (NASDAQ:CEG) and Vistra (NYSE:VST) also contributed to the rally, climbing by 4% and 8.5%, respectively.
Meanwhile, the manufacturing sector showed signs of improvement, with the US ISM manufacturing index hitting its highest point since March at 49.3. However, bond yields also climbed, with the 10-year Treasury yield reaching 4.6%.
Australian Market Outlook
The Australian market is poised for a positive opening, with ASX 200 futures up 0.3%. The focus today will shift to Chinese manufacturing data, which is expected to impact the Australian economy significantly. Domestically, all eyes will be on Wednesday's CPI release, which could influence monetary policy decisions in the coming weeks.
European Caution Amid Auto Industry Declines
In Europe, markets showed a more cautious tone, with the FTSEurofirst 300 index slipping 0.6%. Auto stocks were the hardest hit, as Stellantis (EPA:STLA) reported a steep production decline of nearly 46%, its lowest since the mid-20th century. Despite the day's losses, the FTSEurofirst 300 managed a marginal gain for the week.
Commodities and Currencies Update
Global oil prices rose, driven by cold weather and China's stimulus initiatives. Brent crude gained 0.8% to $76.51 per barrel, while WTI crude climbed 1.1%. Base metals displayed mixed trends, with copper up 1.3% but aluminium declining by 1.6%. Gold prices dipped slightly under pressure from a stronger US dollar, while iron ore futures slipped on weak demand.
In currencies, the Australian dollar stabilized at around 62.12 US cents, while the Japanese yen strengthened marginally to JPY157.27 per US dollar.
Market Snapshot
The ASX 200 futures indicated a 0.3% rise, pointing to a positive start for the Australian market at 8,264 points. In the US, the Nasdaq surged by 1.7% to 21,326 points, showcasing significant strength in technology stocks. Meanwhile, Brent crude prices increased by 0.8% to $76.51 per barrel, reflecting robust demand supported by cold weather and China’s economic measures. Gold prices dipped slightly by 0.5% to $2,654.70 per ounce, pressured by a stronger US dollar but maintaining overall weekly gains. These indicators, along with evolving global economic data, continue to influence market sentiment as the new week begins.
Global markets continue to respond to evolving economic data, with key trends shaping investor sentiment heading into the new week.
