All The Major Highlights From The Global Markets You Need Heading Into The Week Of December 11th, 2023 – Alphabet (NASDAQ:GOOGL)

Last week, the US stock markets experienced mixed performances, with major indexes ending with slight gains. The S&P 500 and Dow Jones ended the week with +0.21% and +0.01% respectively, while the technology-heavy Nasdaq Composite gained 0.69%. In the labor market, the nonfarm payrolls report for November showed an addition of 199,000 jobs, exceeding expectations. The unemployment rate also decreased to 3.7%, down from 3.9% in October. Consumer sentiment improved significantly, reaching its highest level since August, due to reduced inflation concerns.

In Europe, stock markets witnessed positive growth, with the STOXX Europe 600 Index rising by 1.30%. Investor expectations of potential interest rate cuts by central banks in the coming year contributed to this uptick. Major European stock indexes also experienced growth, with France’s CAC 40 increasing by 2.46%, Germany’s DAX by 2.21%, Italy’s FTSE MIB by 1.59%, and the UK’s FTSE 100 by 0.33%. In the bond market, European government bond yields generally decreased, influenced by comments from European Central Bank (ECB) policymakers hinting at possible rate reductions.

In Asia, Japan’s stock market declined, with the Nikkei 225 Index decreasing by 3.36% and the TOPIX Index dropping by 2.44%. This downturn was partly attributed to remarks from Bank of Japan (BoJ) officials, leading to speculation about an earlier-than-expected shift away from the negative interest rate policy. In China, the stock market also saw declines after Moody’s downgraded China’s sovereign debt outlook to “negative.” The Shanghai Composite Index fell by 2.05%, and the CSI 300 Index dropped by 2.4%.

In terms of major news and catalyst events, the Russell 2000 Index surpassed the S&P 500 for the third week in the past month, reducing its year-to-date underperformance. Growth stocks continued to outperform value stocks, with technology stocks gaining traction. The announcement of Alphabet’s new AI model, Gemini, and the introduction of new AI chips by Advanced Micro Devices (AMD) led to significant increases in their share prices.

In the bond market, the US 10-year Treasury Yield closed higher at 4.229% for the week, while the US 2-year Bond Yield ended higher at 4.723%. In the commodity market, gold and silver closed lower for the week, while the Crude Oil WTI Futures closed lower at $71.26.

Looking ahead, upcoming geopolitical events include the Conference of the Parties to the UN Framework Convention on Climate Change (COP28) and Brazil taking over the G20 presidency. In terms of the economic calendar, key events include the release of consumer price index data, the FOMC interest-rate decision and Fed Chairman Jerome Powell’s press conference, and US retail sales data.

Overall, the US stock markets showed mixed performances, European markets experienced positive growth, and Asian markets faced declines. The labor market in the US showed positive signs, with an increase in jobs and a decrease in the unemployment rate. The bond market experienced changes in yields, and the commodity market saw decreases in gold and silver prices. Looking ahead, geopolitical events and economic data will continue to influence market movements.