Global Markets Rise as U.S. Stocks Approach Historic Highs

World financial markets experienced a mostly positive session on Friday, November 3, 2024, as the U.S. stock market maintained its position close to record highs. The S&P 500 futures rose by 0.2%, while the Dow Jones Industrial Average remained unchanged. This upbeat sentiment was reflected in early European trading, where Germany’s DAX gained 0.5% to reach 23,996.47, and France’s CAC 40 increased 0.2% to 8,135.57. The UK’s FTSE 100 also moved slightly higher, edging up 0.1% to 9,729.82.

In Asia, Japan’s Nikkei 225 index experienced a setback, dropping 1.1% to 50,491.87. This decline followed disappointing government data indicating that household spending in Japan fell 3.0% year-on-year in October, marking the steepest drop since January 2024. Shares in the technology sector were particularly affected, with Advantest Corporation declining 2.4% and Tokyo Electron falling 2%. Traders expressed caution ahead of a significant U.S. inflation report expected next week, which could impact Federal Reserve policy.

The Chinese markets also displayed resilience, with Hong Kong’s Hang Seng index recovering from earlier losses, climbing 0.6% to 26,085.08. The Shanghai Composite index rose nearly 0.7% to 3,902.81. Investors remained vigilant in anticipation of crucial economic data from China next week, including inflation and trade figures, as well as signals from high-level economic meetings.

The South Korean Kospi index saw a notable increase, rising 1.8% to 4,100.05. Among the gaining stocks were LG Electronics, which surged 5.2%, and Hyundai Motors, which soared 11.1%. In Australia, the S&P/ASX200 edged up 0.2% to 8,634.60, while Taiwan’s Taiex climbed nearly 0.7%. India’s Sensex advanced 0.5% after the Reserve Bank of India announced a cut in its repo rate from 5.5% to 5.25%, citing weak price pressures and slowing economic growth.

On Thursday, November 2, 2024, the U.S. stock market continued its relatively calm trajectory, following weeks of volatility. The S&P 500 inched up by 0.1% and remained only 0.5% below its all-time high. The Dow Jones Industrial Average dipped 0.1%, while the Nasdaq composite rose 0.2%. A significant contributor to this positive performance was Dollar General, whose shares surged 14% after reporting stronger-than-expected quarterly profits, indicating increased customer shopping activity and improved profit margins.

Concerns about potential overinvestment in artificial intelligence and the Federal Reserve’s next steps concerning interest rates have caused fluctuations in the S&P 500 since it achieved its all-time high in late October. Investors are anticipating a cut in the Fed’s main interest rate next week, which would be the third reduction this year, aimed at supporting the slowing U.S. jobs market. While lower interest rates typically boost investment prices and economic activity, they also pose risks of exacerbating inflation, which remains above the Fed’s target of 2%.

In other market activities early Friday, U.S. benchmark crude oil prices fell by $0.07 to $59.60 per barrel, while Brent crude dipped by $0.01 to $63.25 per barrel. The U.S. dollar weakened against the Japanese yen, falling to 154.91 from 155.12 yen, while the euro appreciated to $1.1652 from $1.1645.

As global investors navigate these market dynamics, the focus remains on upcoming economic indicators and central bank policies that will shape financial landscapes in the weeks ahead.