Global markets saw steady gains last week, extending the late-November rebound, as U.S. services and consumer data supported a global market recovery. Large-cap tech drove U.S. equities higher, while international markets outperformed on moderate inflation. Bonds were slightly weaker and oil continued its recovery, reflecting cautious optimism among investors.
Equity Markets
Stocks moved up across the board:
- Dow Jones: +0.5% (YTD +12.7%)
- S&P 500: +0.3% (YTD +16.8%)
- NASDAQ: +0.9% (YTD +22.1%)
- MSCI EAFE: +1.3% (YTD +25.8%)
- 10-Year US Treasury: 4.14% (+0.1)
- Oil: $60.17 (+2.8%)
- Bonds: -0.8%
In the U.S., tech stocks led gains, supported by year-end positioning and stable consumer activity. International equities outperformed, helped by moderate inflation readings, while cyclical sectors benefited from oil strength.
Macroeconomics
U.S. economic data last week indicated steady but moderate growth. ISM Manufacturing for November showed continued contraction at 48.2 but without additional downside pressure, while ISM Services remained expansionary at 52.6, supporting the service sector. Core PCE rose 0.2% month-on-month, in line with expectations, reinforcing the Fed’s disinflation narrative.
Consumer sentiment edged higher to 53.3, reflecting holiday optimism, and personal income and spending increased modestly at +0.4% and +0.3%, respectively, though spending softened compared with prior months.
In Europe, disinflation progress supported markets despite weak growth: the Eurozone CPI Flash came in at 2.2% year-on-year, Germany’s preliminary CPI held at 2.3%, the Ifo business climate remained stagnant at 88.1, and GfK consumer confidence improved slightly to -23.2.
Across Asia and Australia, Japan’s consumer confidence rose to 37.5, while Australia’s Q3 GDP grew 0.4%, avoiding contraction, and the trade balance came in stronger than expected at A$4.38 billion.
In Canada, the Ivey PMI dropped to 48.4, signaling notable cooling, but the unemployment rate unexpectedly fell to 6.5%, helping stabilize sentiment.
Crypto Markets
Digital assets moved quietly alongside equities:
- Bitcoin (BTCUSD): +0.04% to $90.4K
- Ethereum (ETHUSD): +2.31% to $3,061
Crypto activity remained light, reflecting macro stability and reduced volatility. ETHUSD modestly outperformed BTCUSD, with flows indicating stabilization rather than renewed risk appetite.
Global Overview
The advance last week was steady but uneven. U.S. equities led gains, driven by tech and consumer resilience. International equities outperformed on softer inflation. Oil prices recovered modestly, while bonds and crypto moved cautiously. Thin liquidity around year-end contributed to muted volatility and steady market moves.
Conclusion
Last week’s market action highlights a cautious but steady global market recovery, driven by U.S. services, consumer resilience, and moderate inflation. International equities and oil gains supported the move, while crypto tracked the broader market quietly. Heading into mid-December, markets remain sensitive to macro data but continue to show a constructive trend.
Disclaimer: This content is for informational purposes only and is not financial advice.
