Global markets rebounded last week after three straight weeks of losses. Softer US inflation, steady consumer spending, and stronger-than-expected economic data from India and Canada lifted risk appetite. US equities led the move, while international stocks and cyclicals also participated. Trading volumes were thinner ahead of the US Thanksgiving holiday, which amplified some moves.
Equity Markets
Stocks moved higher across the board:
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Dow Jones: +3.2% (YTD +12.2%)
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S&P 500: +3.7% (YTD +16.4%)
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NASDAQ: +4.9% (YTD +21.0%)
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MSCI EAFE: +2.6% (YTD +23.5%)
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10-Year US Treasury Yield: 4.01% (-0.1 bps)
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Oil: $59.53 (+2.5%)
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Bonds: +0.4%
Tech led the rebound in the US, while international markets and cyclical sectors followed. Lower volumes around Thanksgiving added volatility and amplified short-covering moves.
Macroeconomics
US economic data showed slowing but steady growth. October PPI rose 0.3% month-on-month, while Core PCE remained at 0.2%, continuing the cooling trend. Retail sales increased 0.2% and durable goods orders grew 0.5%, indicating that consumer activity remained resilient. Personal income and spending both rose 0.4-0.6%, supporting the view that growth was slowing gradually, not collapsing.
In Europe, Germany’s Ifo business climate held at 88.1, and GfK consumer confidence improved slightly to -23.2. France and Italy posted lower preliminary CPI numbers (0.9% and 1.2% YoY), while Germany’s CPI remained at 2.3%, consistent with ECB’s disinflation path.
India’s GDP grew 8.2% year-on-year in Q3, confirming it as a global growth outlier. Canada exceeded expectations with annualized Q3 GDP of +2.6% and quarterly growth of 0.6%, avoiding recession fears. China’s manufacturing sector remained in contraction at 49.2 but showed modest improvement.
Crypto Markets
Digital assets rebounded alongside equities, though activity remained cautious:
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Bitcoin (BTCUSD): +4.1% to $90.4K
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Ethereum (ETHUSD): +6.8% to $2,991
The recovery was supported by lower yields, moderate inflation, holiday liquidity, and short-covering. There were no signs of renewed leverage buildup.
Global Overview
The rebound was broad but uneven. US equities led gains, supported by tech and consumer resilience. Europe and Asia saw smaller moves. Oil prices rose modestly as growth expectations stabilized. Thin holiday liquidity in US markets contributed to higher intraday volatility, especially in shorter trading sessions.
Conclusion
Last week marked a rebound in global markets after weeks of decline. US data showed gradual slowing rather than collapse, European inflation stayed moderate, and India and Canada surprised on the upside. Tech and consumer focused equities led the recovery, while crypto stabilized after mid November losses.
With the holiday-thinned liquidity and year-end positioning ahead, markets remained sensitive to new data and developments.
Disclaimer: This content is for informational purposes only and is not financial advice.
