Global equities: markets boosted by economic data
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Equity markets worldwide saw gains as strong economic performance and sector-specific developments fueled investor optimism. Key indices in China, Hong Kong, the UK, and Europe posted significant advances, highlighting the resilience of global markets.
China and Hong Kong stocks climb
China’s blue-chip CSI300 Index rose 0.3% on Friday, closing the week with a 2.1% gain. The Shanghai Composite Index edged up 0.2%, while Hong Kong’s Hang Seng Index added 0.3%, culminating in a weekly rise of 2.7% for the benchmark.
China’s economy expanded by 5.4% in the fourth quarter of 2024 compared to the previous year, exceeding analysts' forecasts. Industrial output surged 6.2% year-on-year in December, its fastest pace since April. Technology and semiconductor stocks led gains in both markets, with Semiconductor Manufacturing International Corp (SMIC) soaring nearly 10% in Hong Kong.
European markets surge to records
The UK’s FTSE 100 and Germany’s DAX both surpassed previous record closing highs, buoyed by Chinese economic growth data and news of potential merger talks between mining giants Rio Tinto and Glencore. The FTSE 100 climbed 1%, with mining stocks Antofagasta, Glencore, and Anglo American leading the charge. Germany’s DAX rose 0.5%, extending its record-breaking streak to three consecutive sessions.
Elsewhere, France’s CAC 40 increased by 0.8%, and Spain’s Ibex 35 gained 0.5%, while the broader Stoxx Europe 600 index advanced 0.5%, reflecting widespread positive sentiment.
Mixed sentiment in other regions
In Hong Kong, property and semiconductor stocks advanced, with the Hang Seng Tech Index up 1.4%. However, bank stocks lagged, with China Construction Bank falling 1.5% and China Merchants Bank down 1.4%. Meanwhile, Richemont shares gained 1% in Switzerland following strong third-quarter sales data, signaling a potential turning point for the luxury sector.
Market outlook
Robust economic growth in China and bullish sentiment in key sectors like technology and mining have set a positive tone for global equities. However, investors remain watchful of geopolitical developments and potential policy shifts, including U.S. tariff policies under the incoming Trump administration. As markets digest these factors, cautious optimism continues to prevail.
China and Hong Kong stocks climb
China’s blue-chip CSI300 Index rose 0.3% on Friday, closing the week with a 2.1% gain. The Shanghai Composite Index edged up 0.2%, while Hong Kong’s Hang Seng Index added 0.3%, culminating in a weekly rise of 2.7% for the benchmark.
China’s economy expanded by 5.4% in the fourth quarter of 2024 compared to the previous year, exceeding analysts' forecasts. Industrial output surged 6.2% year-on-year in December, its fastest pace since April. Technology and semiconductor stocks led gains in both markets, with Semiconductor Manufacturing International Corp (SMIC) soaring nearly 10% in Hong Kong.
European markets surge to records
The UK’s FTSE 100 and Germany’s DAX both surpassed previous record closing highs, buoyed by Chinese economic growth data and news of potential merger talks between mining giants Rio Tinto and Glencore. The FTSE 100 climbed 1%, with mining stocks Antofagasta, Glencore, and Anglo American leading the charge. Germany’s DAX rose 0.5%, extending its record-breaking streak to three consecutive sessions.
Elsewhere, France’s CAC 40 increased by 0.8%, and Spain’s Ibex 35 gained 0.5%, while the broader Stoxx Europe 600 index advanced 0.5%, reflecting widespread positive sentiment.
Mixed sentiment in other regions
In Hong Kong, property and semiconductor stocks advanced, with the Hang Seng Tech Index up 1.4%. However, bank stocks lagged, with China Construction Bank falling 1.5% and China Merchants Bank down 1.4%. Meanwhile, Richemont shares gained 1% in Switzerland following strong third-quarter sales data, signaling a potential turning point for the luxury sector.
Market outlook
Robust economic growth in China and bullish sentiment in key sectors like technology and mining have set a positive tone for global equities. However, investors remain watchful of geopolitical developments and potential policy shifts, including U.S. tariff policies under the incoming Trump administration. As markets digest these factors, cautious optimism continues to prevail.