World Shares Mostly Advance After Wall Street Inches Closer to Its All-Time High

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Summary:

Global stocks were mostly higher on Friday as Wall Street hovered near record levels in quiet trading. European markets advanced, while Asian shares were mixed with Japan slipping on weak household spending data.

World shares were mostly higher on Friday after the U.S. stock market held near its records in a quiet day of trading.

The future for S&P 500 rose 0.2% while that for the Dow Jones Industrial Average was unchanged.

In early European trading, Germany’s DAX added 0.5% to 23,996.47. In Paris, the CAC 40 rose 0.2% to 8,135.57 while Britain’s FTSE 100 edged 0.1% higher to 9,729.82.

In Asia, Japan’s Nikkei 225 trimmed gains from the previous day, shedding 1.1% to 50,491.87. Government data showed household spending in Japan fell 3.0% year-on-year in October, below market expectation for a light increase and the sharpest drop since January 2024.

Technology shares declined, with computer chip testing equipment maker Advantest Corp. down 2.4% and chip maker Tokyo Electron falling 2%.

Traders were acting cautiously ahead of a key U.S. inflation report that could influence Federal Reserve policy. On Thursday, expectations for a coming Fed cut took a slight hit after reports suggested the job market may be in better shape than expected and does not need much help from lower interest rates.

In Chinese markets, Hong Kong’s Hang Seng index recovered from morning losses, adding 0.6% to 26,085.08, while the Shanghai Composite index rose nearly 0.7% to 3,902.81. Still, traders remained cautious ahead of key data from China next week including inflation, trade and producer prices. Investors are also awaiting policy signals from high-level economic meetings in China.

South Korea’s Kospi index rose 1.8% to 4,100.05. Among gainers were LG Electronics, which rose 5.2%, and Hyundai Motors, which soared 11.1%.

In Australia, the S&P/ASX200 edged up 0.2% to 8,634.60. Taiwan’s Taiex rose nearly 0.7%

India’s Sensex advanced 0.5% after the Reserve Bank cut its repo rate to 5.25% from 5.5%, citing weak price pressures and expectations for slowing economic growth.

On Thursday, the U.S. stock market continued its relatively calm run following weeks of sharp and scary swings.

The S&P 500 inched up by 0.1% and was just 0.5% below its all-time high. The Dow Jones Industrial Average dipped 0.1% and the Nasdaq composite rose 0.2%.

Dollar General helped lead the market and rallied 14% after reporting a stronger profit for the latest quarter than analysts expected. More customers shopped at its stores, and it also squeezed more profit out of each $1 in sales that it made.

Besides worries about potential overinvestment in AI, concerns about what the Federal Reserve will do with interest rates sent the S&P 500 on sharp swings after it set its all-time high in late October.

Investors generally expect the Fed to cut its main interest rate next week in hopes of shoring up the slowing U.S. jobs market. If it does, that would be the third such cut this year.

Investors love lower interest rates because they boost prices for investments and can rev up the economy. The downside is that they can worsen inflation, which remains stubbornly above the Fed’s 2% target.

In other dealings early Friday, U.S. benchmark crude shed 7 cents to $59.60 per barrel. Brent crude, the international standard, gave up 1 cent to $63.25 per barrel.

The U.S. dollar fell to 154.91 Japanese yen from 155.12 yen. The euro climbed to $1.1652 from $1.1645.

Source: AP

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Glendon

Forex

Economic

Indian households are witnessing a significant easing in price pressures now and expect it to continue over the next 12 months across all major product categories, according to surveys conducted by the country's central bank.

The Reserve Bank of India's household inflation expectations survey, conducted during Nov. 1-10, showed that the median inflation perception for the current period declined by 80 basis points from the previous survey in September. Inflation expectations for the next three months and one year ahead also showed notable moderation.

"Households reported easing of price and inflationary pressures in most of the product groups including food products, non-food products, and cost of services for both the time horizons," the RBI said.

In such surveys, the direction of change, rather than the absolute level, is more important.

A record-low inflation print in October prompted the central bank to cut its key policy rate on Friday. The RBI also signaled that benign inflation conditions are likely to persist next year.

In a separate survey, consumer confidence, especially in urban areas, showed improvement. Confidence for the year ahead remained in optimistic territory, supported by improved sentiments on prices and the general economic situation.

Sentiments regarding urban employment prospects remained "fairly strong," the RBI said.

Source: Bloomberg Europe

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Samantha Luan

Stocks

Economic

SK hynix's high bandwidth memory HBM3E is displayed at the SK AI Summit 2025 exhibition in Seoul, Nov. 3. Yonhap

Korea has recorded a net outflow of talent in the artificial intelligence (AI) sector as the wage premium for AI professionals remains the lowest among major advanced economies, the central bank said Friday.

The country recorded a net outflow of AI talent every year from 2010 through 2024, excluding 2020, and the number of Korean AI professionals working overseas increased steadily to reach about 11,000 last year, according to a report by the Bank of Korea (BOK).

The figure accounted for about 16 percent of the country's total AI workforce, about 6 percentage points higher than the average share of workers overseas in other fields, the report showed.

In terms of the overall number of AI professionals, Korea also lagged far behind major nations.

Koreans with skills in big data, cloud computing, deep learning and related fields stood at around 57,000 in 2024, well below that of the United States, which had around 780,000 AI professionals, as well as Britain with 110,000 and France with 70,000.

The report noted that the wage premium earned by domestic AI professionals ranked near the bottom among major developed nations.

AI professionals in Korea earned an average of just 6 percent more than non-AI workers last year, compared with a 25 percent premium in the U.S., 18 percent in Canada, and 15 percent in Britain, France and Australia.

"Our analysis suggests a link between compensation and overseas job mobility in the AI sector," said Oh Sam-il, head of the BOK's employment research team.

"The low wage premium is due partly to Korea's rigid wage structure and underdeveloped performance-based pay system, and such factors put the country at a disadvantage in the global competition for AI talent."

Source: Koreatimes

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Adam

Economic

Futures linked to the main U.S. stock indices point broadly higher ahead of the unveiling of a closely-watched, albeit delayed, inflation measure. Along with these numbers, traders will also be keeping tabs on a more timely indicator of American consumer sentiment. Netflix has reportedly entered exclusive talks to buy key assets of Warner Bros Discovery -- a purchase that has the potential to create a Hollywood behemoth.

Futures mostly rise

U.S. stock futures were marginally higher on Friday, with investors awaiting a key inflation indicator that could factor into the Federal Reserve’s much-anticipated interest rate decision next week.

By 03:03 ET (08:03 GMT), the Dow futures contract had risen by 27 points, or 0.1%, S&P 500 futures had climbed by 17 points, or 0.2%, and Nasdaq 100 futures had increased by 116 points, or 0.5%.

The main averages were mixed in the prior session. The benchmark S&P 500 and tech-heavy Nasdaq Composite both advanced, while the blue-chip Dow Jones Industrial Average lagged.

Traders were weighing a drop in weekly first-time claims for unemployment benefits in the U.S. to the lowest level since 2022, while a report from the Chicago Fed estimated that the unemployment rate had remained unchanged around 4.4% in November.

A dearth of fresh, front-line official data due to the recently-ended U.S. government shutdown has forced markets and policymakers alike to rely on secondary figures to paint a picture of the labor market. Labor is a central motivating influence on the Fed’s rate trajectory, as the central bank is tasked with calibrating borrowing costs to help ensure maximum employment.

PCE price index ahead

The Fed’s other main goal -- price stability -- has faded somewhat into the background as much of the conversation of past weeks has swirled around weakening job growth.

But inflation will once again step into the limelight on Friday, when the Personal Consumption Expenditures price index is released. The central bank often refers to some sections of this report when trying to assess the state of price gains in the world’s largest economy.

Excluding food and energy, the underlying, or "core," PCE price index is seen holding at 2.9% in the 12 months to September and 0.2% month-on-month. Crucially, analysts have noted, the September dating of the numbers -- reflecting the delay caused by the federal government shutdown -- could dampen their immediacy.

Still, given the postponed release of the monthly nonfarm payrolls report until later this month, the PCE index -- as well as readings of personal income and spending -- will provide some of the final major data points Fed officials will have before they convene for an all-important policy meeting on December 9-10. Expectations have been high that the Fed will slash rates by 25 basis points, as they did in October and September, in a bid to prop up the labor market.

University of Michigan sentiment indicator due out

Beyond PCE, the economic calendar will feature the latest survey of consumer sentiment from the University of Michigan.

Analysts at ING said this indicator will be "more timely" than the PCE index, and is anticipated to show a slight recovery compared to past months. This could offer up a sign of at least moderate cheer among American households with the holiday shopping season in full swing.

In early November, the gauge slumped to near a 3-1/2-year low, as consumers across the political spectrum fretted over the impact of the government shutdown on the broader economy. The data also underscored an emerging feature of the U.S. economy: higher-income Americans appear to be continuing to thrive despite wider uncertainty, while lower-income individuals are struggling.

Those with sizeable stock holdings were also especially upbeat last month, which the University of Michigan said was due to "strength in stock markets."

Netflix in exclusive talks with Warner Bros Discovery - reports

Netflix has entered into exclusive negotiations to purchase Warner Bros Discovery’s film and television studios as well as its prized streaming assets, media reports have said.

The streaming giant reportedly offered $28 per share for those portions of the long-time Hollywood stalwart, whose brands include HBO and DC Comics.

Should the transaction be finalized, it would transform Netflix into a media powerhouse with control over one of the most valuable content libraries in the entertainment industry. Among Warner Bros’ many possessions are the mega-popular franchises "Game of Thrones" and "Harry Potter," along with intellectual property rights over premium properties.

Warner Bros received a second round of bids from Netflix, Paramount Skydance and Comcast earlier this week, after the three unveiled preliminary buyout plans, reports said.

Netflix and Warner Bros are anticipated to announce a deal imminently, the Wall Street Journal reported, citing people familiar with the matter.

Shares of Warner Bros were higher in extended hours trading on Friday, while Netflix inched down slightly.

Oil steadies

Elsewhere, oil prices took a breather after a rise in the preceding session, as stalled diplomatic progress over the Ukraine war and firm expectations for a Fed rate cut swayed sentiment.

Brent futures were last mostly unchanged at $63.25 a barrel, and U.S. West Texas Intermediate crude futures dipped 0.1% to $59.59 per barrel.

Both contracts jumped nearly 1% on Thursday, and while Brent was mostly flat this week, WTI was on track for a 1.5% weekly gain -- a second straight week of increase.

The lack of progress in U.S.-Russia talks to end the Ukraine war has dampened hopes that energy sanctions on Russian crude could be eased soon, keeping a risk premium in the market.

Source: investing

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Warren Takunda

Economic

AUD/USD is set for an eleventh consecutive positive daily close; I can't find a run of similar strength going back to 2020, and I'm sure if I had more time in a day I could pinpoint the last time this was achieved.

Nevertheless, the message is clear: this is a strong breakout and the Aussie is finally living up to expectations.

There are numerous currency analysts and market participants who have been betting on the Aussie dollar owing to superior fundamentals but have been frustrated by its failure to lift.

As we enter year-end, it looks like the stars are aligning for that move.

AUD/USD moves to 0.6635 ahead of the weekend, having plumbed the lows of a multi-month range at 0.6420 just two weeks ago. Australian Dollar's Remarkable Surge_1

That AUD strength is reflected elsewhere, with GBP/AUD rolling over to 2.0100. GBP has actually been an outperformer of late, and GBP/AUD's fall is testament to the fact it's the AUD which is G10's 'one to beat'.

EUR/AUD is an interesting one as the recent fall sees it probing the bottom of the long-running 2025 range at 1.76, a breakdown here surely confirms the AUD is showing its mettle. Australian Dollar's Remarkable Surge_2

The driver behind Aussie's gains is the shift in the country's interest rate outlook: from thinking the Reserve Bank of Australia would lower rates further, we're now facing the prospect of interest rate rises next year.

A Reuters poll shows economists now expect the RBA to hold its cash rate at 3.60% through 2026, whereas in November the poll showed at least one quarter-point cut for next year.

"Investors' bets of another rate cut faded after the latest monthly CPI data revealed that inflation rose to 3.2%, above the RBA’s 2-3% target range, and should the RBA maintain a hawkish stance at next week’s gathering, the Australian dollar is likely to continue marching north," says Charalampos Pissouros, Senior Market Analyst at Trading Point.

ANZ is one major Aussie bank that has shifted its expectations, now anticipating the cash rate to remain at 3.60% for an "extended" period, marking a significant shift from earlier forecasts that assumed additional easing in 2026.

The bank says recent inflation pressures, steadier economic growth and a labour market moving into balance mean the RBA is unlikely to deliver further cuts.

But at the same time, ANZ says it is “difficult to see a rate hike in 2026”, pointing to the rise in unemployment over the past year and conflicting signals across demand indicators.

Although confidence in further Australian dollar upside is building, one seasoned analyst is cautious of hype.

"This speculation is overdone," says Jane Foley, Senior FX Strategist at Rabobank in London.

She argues headwinds remain:

"China is Australia’s largest export partner, and it is possible that China’s attempts to tackle deflation and industrial overcapacity will create headwinds for Australia’s economy," says Foley.

On the RBA story, she points out that central bank rate hiking expectations are not unique:

"The RBA is not the only G10 central bank that has been caught up in market speculation regarding the risks of a rate hike in 2026."

Rabobank continues to forecast "only a modest push higher in AUD/USD to 0.69 on a 12-month view."

Source: Poundsterlinglive

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Michelle

Commodity

Gold and metals market financial analyst Jesse Columbo believes that a major market move might be brewing, and that gold could reach record prices once again.

In a recent analysis on the state of the gold market, Columbo pointed out $5,200 as gold's next goal, having already registered several all-time high prices this year.

Columbo states that the recent price breakout that gold experienced on November 28 is part of the evidence leading to this new price goal. He explained that this move is the third of its kind happening this year, and that if prices follow their previous behavior, it could reach this number.

Nonetheless, Columbo is even more bullish about gold long-term, as he believes there is a configuration of tailwinds that will propel gold to new highs, having recently explained that gold's bull market is still in its early stages.

The Fed's long-awaited decision on interest rates might also become another catalyst for a hypothetical price hike, as gold traditionally performs well during low-interest periods as a non-interest-yielding asset.

The expectation of a quarter-point rate cut is widespread, meaning that if the Federal Reserve fails to deliver, prices might decrease temporarily.

Phillip Streible, chief metal strategist at Chicago's Blue Line Futures, pondered on this outcome. Talking to Sputnik, he stated:

The overwhelming expectation for December is that there will be another Fed rate cut. If that doesn't happen, be prepared for downside that could even exclude December as a winning month.

Even so, most firms predict gold will keep rising in 2026 and beyond, as central banks and investors are expected to maintain growing demand for the metal as an inflation and uncertainty hedge with no clear substitute.

Source: CoinGecko

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Adam

Stocks

MARKET WRAPS Stocks:

European shares were on the rise as investors awaited eurozone employment and GDP data, as well as an update on U.S. inflation.

Friday's U.S. data focus is on September PCE inflation , the Fed's preferred gauge of inflation, which was delayed by the longest U.S. government shutdown.

The central bank is widely expected to cut its short-term target rate on Dec. 10, and the PCE will likely be the last reading out before the Fed's decision.

The Fed could pause rate cuts after its next meeting, with the path for its monetary policy in the second half of 2026 remaining highly uncertain, T. Rowe Price's Blerina Uruci said.

"My biggest disagreement with the market is the pricing of cuts in the first half of 2026 , which I think is too dovish," Uruci added.

Eurozone wage and final estimate third-quarter GDP data are also expected on Friday.

"The data will give us the first full picture of wage developments in the third quarter," Danske said. The data are very important for the European Central Bank outlook since services inflation is what currently keeps inflation from falling below target, it added.

Macquarie's base case for the ECB is to stay on hold over the forecast horizon, albeit with risks toward further rate cuts.

Shares on the Move

U.K. miners rose in early European trading after a bumper week for commodities. Cautious buying ahead of next week's Federal Reserve interest rate decision and geopolitical tensions are a catalyst for miners, Interactive Investor said.

U.S. Markets:

Stock futures were up with all eyes turning to the key PCE report, as it could provide further clues on the Fed's rate-cut path.

Labor market data provided conflicting readings on Thursday, with weekly jobless claims hitting a three-year low .

Economists polled by The Wall Street Journal project the PCE index accelerated slightly in September.

Forex:

The euro edged higher. The cost for eurozone bond investors to hedge their U.S. investments against the risk of a weaker dollar is tumbling and this should boost the euro, ING said.

These hedging costs will probably fall further as the Federal Reserve is likely to cut interest rates again, it added.

The dollar fell ahead of the PCE release.

Sterling rose, with its current rally reflecting a short squeeze as traders close earlier bets against the currency taken ahead of last week's U.K. budget, ING said.

Bonds:

Bund yields were little changed on the day but could continue edging higher, Jefferies said. The bank expects some bearish pressure on Bunds--pushing yields higher--in the coming weeks, even though yields will likely keep within a tight range.

Ten-year eurozone government bond yields were expected to see some upward pressure from rising Treasury yields in 2026, Macquarie said.

Treasury yields traded lower, reversing some of Thursday's increases that were driven by better-than-expected jobless claims data.

Treasury yields seemed likely to remain constrained in a narrow range to start the new year as the U.S. economy continues to expand, said Federated Hermes.

Energy:

Oil prices were on track for weekly gains, buoyed by diminishing prospects of a Russia-Ukraine peace deal in the short term and growing tensions between the U.S. and Venezuela.

"Conflict-related risk premia are providing an offset to the oversupply that has been building in 4Q 2025 and which we expect to spill over into the new year," BMI, a unit of Fitch Solutions, said.

Metals:

Gold prices rose on a softer U.S. dollar.

"Gold managed to hold its ground, after the latest U.S jobs data did little to sway expectations of a Fed interest rate cut next week, " ANZ said.

The latest U.S. jobs data did little to sway expectations of a Fed rate cut next week, with applications for unemployment benefits hitting their lowest in more than three years, ANZ added.

Gold is likely to sustain its strong trend-like rally in 2026, UOB said. "The case for gold as a safe haven to diversify one's portfolio remains strong," it added.

Copper

Copper gained in early trade. The metal has gained more than 7% since the start of November and is up 30% since 2025 began, likely on ongoing supply disruptions , ANZ said.

Iron

Iron ore prices were lower in early trade, weighed by weak demand and strong supply. Demand for iron ore is getting more subdued while its supply remains at a high place , which have pressured prices, Baocheng Futures said.

EMEA HEADLINES

German Factory Orders Rise Again

German manufacturing orders rose again in October, driven by an uptick in domestic demand and signaling continued resilience in the factory sector amid trade uncertainty.

Total orders rose 1.5% on month, accelerating further after a 1.1% jump in September, statistics agency Destatis said Friday. A consensus of economists polled by The Wall Street Journal expected a rise of 0.5%.

Equinor Makes North Sea Gas Discoveries

Equinor made two new discoveries of gas and condensate in the North Sea, the Norwegian energy major's largest discoveries so far this year.

Initial estimates indicate the reservoirs could contain 30 million to 110 million barrels of recoverable oil equivalent, the company said Friday.

Swiss Re Targets Higher Profit in 2026, Sets Out Buyback Program

Swiss Re forecast higher net profit for 2026 and said it would launch a buyback program of $500 million.

The Zurich-based reinsurer said Friday that it expects to achieve net profit of $4.5 billion in 2026. For the current year, it targets net profit of more than $4.4 billion.

European Leaders Warn Zelensky to Be Wary in U.S. High-Speed Push for Peace

BERLIN-In recent days, European leaders have delivered a stark warning to Ukrainian President Volodymyr Zelensky: Don't give in to Russian demands without ironclad security commitments from the U.S.

The message reflects European leaders' growing wariness of Washington's high-speed effort to reach a peace deal that has left them on the sidelines.

GLOBAL NEWS

Why investors see Friday's inflation report as a gut check of vibes on the economy

U.S. stocks have clawed their way back to the doorstep of record territory after a volatile month on Wall Street, but persistent inflation worries and souring consumer sentiment are keeping investors uneasy ahead of the Federal Reserve's last policy meeting of the year.

That's why Friday's release of the September report for the Fed's preferred inflation gauge - the personal consumption expenditures price index - comes at a crucial time for investors. The hope is that the new PCE report, while delayed, will provide a hard-data reality check that will either confirm the downbeat economic mood or prove, once again, that the vibes are all wrong.

German Factory Orders Rise Again

German manufacturing orders rose again in October, driven by an uptick in domestic demand and signaling continued resilience in the factory sector amid trade uncertainty.

India Central Bank Delivers Rate Cut to Boost Economy

India's central bank cut its key policy rate, snapping a two-meeting run of pauses as cooling inflation creates room to lend the economy more support against tariff risks.

The Reserve Bank of India on Friday voted unanimously to lower its policy repo rate to 5.25% from 5.50%. The RBI also voted to keep its monetary policy stance at neutral.

European Leaders Warn Zelensky to Be Wary in U.S. High-Speed Push for Peace

BERLIN-In recent days, European leaders have delivered a stark warning to Ukrainian President Volodymyr Zelensky: Don't give in to Russian demands without ironclad security commitments from the U.S.

The message reflects European leaders' growing wariness of Washington's high-speed effort to reach a peace deal that has left them on the sidelines.

Israel's Latest Military Tech: Tested in Gaza, Wanted by the West

TEL AVIV-Israel is leveraging the war in Gaza to market its latest military technology.

U.S. and European buyers are lining up.

Prominent Anti-Hamas Militia Leader Killed in Gaza

The head of the most prominent anti-Hamas militia backed by Israel in Gaza has been killed, removing a key figure in a policy to build up armed alternatives to the militant group.

Yasser Abu Shabab, the young leader of a militia called the Popular Force, which holds sway in a small slice of territory in the southern Gaza city of Rafah, was shot and killed while intervening in a Palestinian clan dispute, his militia said late Thursday.

A Sprawling Fraud Scandal Puts Minnesota's Somali Community in the Spotlight

Massive fraud blamed on dozens of Minnesota residents of Somali descent has jumped to national attention, with House Republicans launching an investigation into how pervasive corruption in the state's social-services system was allowed to fester under Democratic Gov. Tim Walz's administration.

The probe by the GOP-led House Oversight Committee deepens scrutiny of the scandal in Minnesota, where federal prosecutors say the fraud exceeded $1 billion and that dozens of people bilked taxpayers by setting up scam social-services companies. Close to 60 defendants have been convicted, and federal prosecutors last week charged the 78th person in a prong of the cases that authorities called "the largest Covid-19 fraud scheme in the country."