Global markets ended the week mixed as softer US inflation strengthened expectations of a Federal Reserve rate cut next week. European markets were largely flat amid geopolitical uncertainty, while Asia traded unevenly on mixed economic signals. Media stocks were in focus after Netflix moved to acquire key Warner Bros. Discovery assets.
US stocks rose on Friday as easing inflation strengthened expectations that the Federal Reserve will cut interest rates next week. The DOW gained +0.2%, the S&P 500 added +0.2%, and the NASDAQ rose +0.3%. Core PCE rose 2.8% year-on-year, slightly below estimates, while monthly readings were in line with expectations; consumer sentiment from the University of Michigan also improved, reinforcing confidence in the economic outlook. Traders viewed the softer inflation backdrop alongside recent labour-market weakness as increasing the likelihood of a quarter-point cut on Wednesday. Netflix fell -2.9% after announcing exclusive talks to acquire Warner Bros. Discovery’s (+6.3%) film and streaming assets in a $72 billion deal that the Trump administration views with ‘heavy skepticism’. Salesforce climbed +5.3% following better than expected earnings. The US two-year yield and 10-year yield each rose +3bp to 3.564% and 4.139% respectively.
European stocks ended Friday little changed as markets hovered near the flatline ahead of next week’s Federal Reserve decision and a series of European rate announcements due the following week. The STOXX 600 ended flat, with Germany’s DAX up +0.6%, while France’s CAC 40 slipped -0.1% and the UK’s FTSE 100 fell -0.5%. Investors continued to track developments in US-led negotiations on Ukraine, as EU officials explored ways to use frozen Russian assets to support Kyiv and Putin pursued diplomatic outreach in India. Fresh data showed the eurozone economy grew +0.3% in the third quarter, a slight upward revision from earlier estimates.
Asian stocks delivered another patchy performance on Friday as investors awaited US inflation figures for direction ahead of next week’s Federal Reserve meeting. China’s Shanghai Composite rose +0.7% ahead of a heavy data calendar including inflation, trade, and producer prices, while Hong Kong’s Hang Seng gained +0.6%. Japan’s Nikkei 225 fell -1.1% after household spending dropped at its fastest pace in nearly two years, with tech names such as Advantest (-2.4%) and Tokyo Electron (-2.0%) declining, though SoftBank jumped 6.0% on reports its chip unit Arm plans to establish a design facility in South Korea. South Korea’s Kospi surged +1.8% as Hyundai Motor (+11.1%) continued to rally on easing US tariffs. Australia’s ASX 200 edged up +0.2%, though sentiment was dented by a steep profit warning from Premier Investments (-15.9%) and a -1.5% drop in Rio Tinto after its new CEO outlined a cost-cutting overhaul. New Zealand’s NZX 50 slipped -0.2%, weighed by Gentrack (-5.9%).
WTI crude rose +0.7% to US$60.08/bbl, gold slipped -0.3% to US$4,196.78/oz, and iron ore lost -0.5% to US$107.24/MT. Copper jumped +1.8% to a record US$13,079.95 after Citigroup issued a bullish outlook, citing tightening supply and resilient demand.