Wall Street shares rose in a holiday-shortened session as the US Black Friday shopping spree got under way and traders speculated whether President-elect Donald Trump may temper his trade tariff threats.
The yen rallied against the dollar as higher inflation in Japan fueled expectations that the central bank will hike interest rates again.
Traders are closing out a rollercoaster month for assets caused largely by Trump winning a second US presidential election — and also a result of the wars in Ukraine and Gaza.
Markets are tracking developments surrounding Trump’s pledge to hammer China, Canada and Mexico with hefty tariffs on his first day in office in January.
US stock markets closed higher on a shortened trading day, with the Dow and S&P 500 hitting fresh records following Thursday’s Thanksgiving break.
Chip companies notched gains after a news report that President Joe Biden’s administration was mulling further curbs on semiconductor equipment sales to China that were less severe than anticipated.
Shares in Nvidia closed 2.2 percent up.
The market appears to be “cruising along here without any interference,” said Patrick O’Hare of Briefing.com.
The Paris and Frankfurt stock markets closed in the green, and London finished with more modest gains.
“With many US investors still out after being off for Thanksgiving yesterday, the key theme that has emerged in the last few days is the easing of tariff fears,” said Fawad Razaqzada, market analyst at City Index and Forex.com.
This came after a phone call between Trump and Mexican President Claudia Sheinbaum, who afterwards said: “There will not be a potential tariff war.”
The focus was also on shoppers seeking bargains on Black Friday, a crucial day for retailers around the world.
O’Hare noted that Black Friday has become less of a “frenetic rush” given the popularity of online shopping now — although there is still a lot of attention on the retail space.
– Eurozone inflation rises –
Investors in Europe digested data showing eurozone inflation accelerated again in November, as well as France’s ongoing political turmoil.
Year-on-year consumer price increases reached 2.3 percent, the EU’s official data agency said, continuing to bounce back from a three-year low of 1.7 percent in September.
Analysts said the latest reading was not expected to deter the European Central Bank from cutting interest rates next month as it focuses on addressing Europe’s sluggish growth.
Investors have monitored uncertainty over budget cuts to reduce France’s huge deficit, as Prime Minister Michel Barnier’s government struggles amid tough opposition from the right and left.
In Asia on Friday, forecast-busting consumer prices out of Tokyo boosted talk of another Japanese interest rate hike next month, in turn sending the yen strengthening one percent against the dollar.
Consumer prices in Tokyo — seen as a bellwether for Japan as a whole — jumped 2.6 percent in the 12 months through November, well up from October’s rate and much more than expected.
The Bank of Japan has hiked interest rates twice this year, while the yen was being supported also by forecasts that the Federal Reserve will lower US rates at its December meeting.
The stronger yen Friday weighed on Japanese exporters, causing the Tokyo stock market to close lower.
Hong Kong and Shanghai gained after Chinese authorities held a meeting to discuss plans to boost stunted consumption in China as they look to kickstart the world’s number two economy.
– Key figures around 2010 GMT –
New York – Dow: UP 0.4 percent at 44,910.65 points (close)
New York – S&P 500: UP 0.6 percent at 6,032.38 (close)
New York – Nasdaq: UP 0.8 percent at 19,218.17 (close)
London – FTSE 100: UP 0.1 percent at 8,287.30 (close)
Paris – CAC 40: UP 0.8 percent at 7,235.11 (close)
Frankfurt – DAX: UP 1.0 percent at 19,626.45 (close)
Tokyo – Nikkei 225: DOWN 0.4 percent at 38,208.03 (close)
Hong Kong – Hang Seng Index: UP 0.3 percent at 19,423.61 (close)
Shanghai – Composite: UP 0.9 percent at 3,326.46 (close)
Dollar/yen: DOWN at 149.60 yen from 151.51 yen on Thursday
Euro/dollar: UP at $1.0580 from $1.0552
Pound/dollar: UP at $1.2739 from $1.2687
Euro/pound: DOWN at 83.04 from 83.18 pence
West Texas Intermediate: DOWN 1.1 percent at $68.00 per barrel
Brent North Sea Crude: DOWN 0.5 percent at $72.94 per barrel
bur-lth/jhb/bys/st
