ABM Capital “Equity recovery and strong dollar performance”
Ahmed Bin Abdulqader ـ nabd-alhadath
U.S. stocks made solid gains on Friday with all indices performing strongly and ending at week highs, Investors are rotating out of the previous highflyers of large-cap communication services and technology and into other cyclical sectors of consumer discretionary, industrials, and financials, as well as mid- and small-cap stocks.
US market
The Standard and Poor’s 500 broad-market index rose by 20.63 points, or 0.35%, finishing at 5,969.34. Gains were led by the technology and healthcare sectors, as investors balanced optimism about economic resilience with concerns about potential rate hikes.
The Dow Jones Industrial Average the blue-chip index surged by 426.16 points, or 0.97%, closing at 44,296.51. Strong performances from industrial and financial stocks contributed to the rally, reflecting broader confidence in the US economy.
The tech-heavy NASDAQ Composite added 31.23 points, or 0.16%, to settle at 19,003.65. While tech stocks advanced modestly, the index’s performance was tempered by mixed earnings reports from some major players.
GCC market
Stock markets in the United Arab Emirates declined on Friday, despite rising oil prices, as the intensifying conflict between Russia and Ukraine kept investors on edge, with Dubai breaking a six-week gaining streak.
Abu Dhabi’s benchmark index declined 0.9%, extending losses to a third session, as a majority of the stocks were trading in negative territory.
Abu Dhabi’s largest listed firm, International Holding Company, which has investments in Adani Group companies, slipped 1% after the Indian conglomerate’s chairman Gautam Adani was indicted by U.S. prosecutors for his alleged role in a $265 million scheme to.
The potential impact from Adani’s extensive business presence in the UAE, including strategic partnerships with ADNOC, and substantial investments from Abu Dhabi’s IHC affected market sentiment, said Milad Azar Market analyst at XTB MENA Four of IHC’s eight listed subsidiaries closed lower, with Alpha Dhabi Holding dipping 1.1%. Meanwhile, defense contractor Abu Dhabi Ship Building plunged 9.1% after touching an all-time high of 6.40 dirham a share.
European market
UNITED KINGDOM
London markets closed out the trading week on a firm footing, after weak economic data boosted expectations for interest cuts. London’s leading blue chip index surged nearly 1.5% in late trading, closing at 8,262.08, adding 112.81 points or 1.38%.
EUROPE
European stock markets had a strong performance, with all major indices closing in positive territory. The DAX Performance index in Germany rose 176.42 points to 19,322.59, gaining 0.92%.
In France the CAC 40 ended the day at 7,255.01, up 41.69 points or 0.58%.
The EURO STOXX 50 climbed 33.25 points to finish at 4,789.08, a rise of 0.70%.
The Euronext 100 Index gained 8.94 points, or 0.62%, to close at 1,443.61.
Asian market
Asian markets showed mixed performance, reflecting varying investor sentiments across the region. The Hang Seng Index in Hong Kong was weighed down by market concerns, the Hang Seng Index dropped 371.14 points or 1.89% to close at 19,229.97.
The Nikkei 225 in Japan posted a significant advanced 257.68 points or 0.68% to 38,283.85.
India’s S&P BSE SENSEX in India benchmark soared, gaining 1,961.32 points or 2.54 % to close at 79,117.11.
Commodities
Gold price rallied to a new two-week high on Friday during the North American session as US Treasury bond yields drop. Geopolitics continued to play its part, keeping the golden metal bid, while US business activity improved, capping the non-yielding metal advance. The XAU/USD closed at $2,710, gaining 1.50%.
Crude Oil price closed off the week above $70 after a week filled with headlines on ramped up tensions between Russia and Ukraine. Both countries are rushing to get the tactical upper hand ahead of possible resolution talks once President-elect Donald Trump takes office in January 2025. One of the new elements in the escalation is that Russia apparently has put a Polish (Poland is a NATO member) military base at the top of its target list for any subsequent retaliation if Ukraine attacks again.
Forex
The foreign exchange market on Friday showcased the US dollar’s dominance, as it gained against several major currencies amid investor optimism and economic data releases.
The euro slipped by 0.55%, settling at $1.0415 as traders assessed ongoing economic challenges in the Eurozone.
The dollar strengthened by 0.20% against the yen, reaching 154.84, as investors looked toward potential monetary policy shifts in Japan.
USD/CAD (US Dollar/Canadian Dollar) The greenback edged up by 0.05 percent to 1.3980, buoyed by higher U.S. Treasury yields and stable oil prices.
The British pound fell by 0.48% to $1.2527, impacted by weak economic indicators and concerns over the UK’s growth outlook.
USD/CHF (US Dollar/Swiss Franc) the dollar made a notable gain of 0.88 %, reaching 0.8943, reflecting investor appetite for the U.S. currency amid global uncertainty.
The Australian dollar dipped by 0.20% to $0.6497, affected by weaker-than-expected economic data from China, a key trading partner.
The New Zealand dollar declined by 0.50%, settling at $0.5829, amid concerns over the country’s economic recovery.
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