Australian Market

Australia’s S&P/ASX 200 benchmark index jumped 2.8%. There were broad-based increases across most segments, as stocks benefited from a global improvement in risk appetite.

US Market 

Stocks extended their gains on hopes that slowing inflation will encourage the Federal Reserve to back off its campaign of aggressive interest-rate increases. The benchmark S&P 500 moved higher by 0.9%. The Dow Jones Industrial Average edged ahead 0.1%, while the tech-heavy Nasdaq Composite Index added 1.9%.

Beijing’s move to ease pandemic restrictions also added to the buoyant mood in markets. The world’s second-biggest economy has dragged on global growth this year by imposing lockdowns and constricting travel to control coronavirus.

Commodities

Gold futures marked another finish at their highest since August, up more than 5% for the week, as expectations that the Fed might slow its pace of interest-rate increases helped to boost the yellow metal, and contributed to a fall in the U.S. dollar index to a more than two-month low. December gold rose 0.9% to settle at $1,769.40 per ounce on Comex – the highest finish for an most-active gold contract since Aug. 25, according to FactSet. Prices for the contract ended the week 5.5% higher.

Oil Futures

Oil futures ended higher as China eased some Covid-19 restrictions, with support for the commodity also stemming from relief surrounding U.S. inflation data that weighed on the dollar. West Texas Intermediate crude for December delivery climbed 2.9% to settle at $88.96 a barrel on the New York Mercantile Exchange.

The front-month contract still marked a decline of 3.9% for the week, according to Dow Jones Market Data. January Brent crude, the global benchmark, climbed 2.5%, to $95.99 a barrel. “Sheer confusion” on Chinese Covid-19 policy, with the nation’s approach “clear as mud,” is driving the market fluctuation in oil, said Manish Raj, chief financial officer at Velandera Energy Partners.

Forex

Major currencies were stronger against the US dollar in European and US trade. The Euro rose from lows near US$1.0190 to highs near US$1.0360 and was near US$1.0350 at the US close. The
Aussie dollar lifted from lows near US66.15 cents to highs near US67.15 cents and was near US67.00 cents at the US close. And the Japanese yen firmed from near 141.70 yen per US dollar to JPY138.45 and was near JPY138.80 at the US close.

European Markets

European sharemarkets were mixed on Friday but still produced the best weekly gains in eight months. Driving shares was a lowerthan-expected lift in US consumer prices and news of an easing of Chinese Covid restrictions. On Friday, mining rose 2.6%, financial services gained 2.7% and retail rose 2.5%. Restraining prices was news that German consumer prices lifted 11.6% over the year to October. The continent-wide FTSEurofirst 300 index fell by 0.64 points or less than 0.1%. The UK FTSE 100 fell by 0.8%.

Asian Markets

Earlier, in Asia, Japan’s Nikkei Stock Average closed 3.0% higher amid expectations of a slower tightening by the Fed. Chinese shares rallied after Beijing announced it would ease Covid restrictions and shorten the quarantine for inbound travel. The Shanghai Composite Index ended 1.7% higher, the Shenzhen Composite Index increased 1.3%, and the ChiNext Price Index was 2.0% higher.