The European stock market closed in positive territory last week after ascending to a three-month high record. The ^FTSE (FTSE 100) outperformed continental competitors throughout the week, rising by 0.2%. In any case, the rise comes despite the UK economy's worst slump since the global financial crisis. The ^FCHI (CAC) increased by almost 0.2% in Paris after starting the week in red. Meanwhile, the GDAXI (Frankfurt DAX) hit 0.1% higher.
Right now, the UK PMI (purchasing manager’s index) shows that the country is headed into its steepest economic recession since the climax of the global financial crisis. Recent surveys indicate that the UK economy is already battling a recession. The condition might worsen moving towards next year. Furthermore, the report shows the economy shrinks at a 0.4% quarterly rate. Besides, the private sector in Germany continues to shrink.
The DJI (Dow Jones) edged by 0.4% up 24 hours before Thanksgiving Day, and the ^IXIC (tech-heavy NASDAQ) advanced by 1.1%. On the other hand, the GSPC (S&P 500) increased by 0.6% before the European close time. American businesses also recorded a downturn with a solid contraction in business activities through November. Overall, the contraction rate was among the quickest since 2009.
Generally, the headline US PMI flash for S&P Global composite output index fell to 46.3 from 48.2 before the beginning of the fourth quarter. The service and manufacturing sectors both faced lower output due to steep demand declines. The reduction in activity marked the second-fastest since 2020 as economic uncertainty, rising borrowing costs, and inflation hampered demand. The US stocks closed the Tuesday session with gains.
Overall, traders anticipate a minor interest rate increase from the Federal Reserve on Wednesday this week. As experts predicted, the central bank of England raised interest rates by 75 basis points last time. They are now anticipating a 50 basis point rate hike during the next meeting in December. Another crucial factor that the traders are monitoring is the US weekly jobless claims which they expect to remain at about 225,000.
Above all, the dollar remains subdued against the sterling pound as it hit 1.5% higher to trade at $1, 2063. Asian stocks recorded positive gains last week despite the rising Covid-19 cases in China. The ^N225 (Nikkei) rose by 0.6% in Tokyo, while the ^HIS (Hang Seng) also climbed by 0.6% in Hong Kong. Yet, the 000001.SS (Shanghai Composite) closed at 0.3% higher. Most importantly, Australian shares rose with most gains from resources and mining companies due to higher oil prices.
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