Daily market review

United States

Thursday's rebound in risk assets continued Friday with gains across the board, and energy leading on rising oil prices. The Dow Jones industrial average gained 1.1 percent, the S&P 500 rose 1.5 percent, and the NASDAQ advanced 2.3 percent.

Megacaps gave extra weight to the day's advance, with a boost from declining market interest rates, as US Treasuries coped surprisingly well with the week's upside inflation surprises, and yields declined for a second consecutive day Friday. Energy stocks were paced by Marathon Oil, the driller, up 6.6 percent.

Among sectors, technology beat the market, with chipmakers rising. Reopening plays gave consumer discretionary shares a lift, with gains in restaurants and travel & leisure. Big internet stocks lifted communications services, with Facebook up 3.5 percent. Industrials lagged but were higher. Materials were held back by a selloff in industrial metals after Chinese authorities acted to rein in iron prices.

Among stocks in focus, Disney fell 2.6 percent after it reported slower growth in subscriptions to its streaming service. Among winners, Doordash, the delivery service, rallied 22 percent on an earnings and revenues beat. Dillard's, the upscale retailer, rose 23 percent after topping earnings expectations.

These price data reflect observations at 4:00 PM US ET: Dated Brent spot crude oil rose US$1.73 to US$68.71 while spot gold rose US$15.74 to US$1,843.30. The US dollar fell vs. major currencies. The US Treasury 30-year bond yield fell 4 basis points to 2.35 percent and the 10-year note yield slipped 3 basis points to 1.63 percent.


A global bounce in risk assets continued in Europe Friday with energy and tech stocks leading, to recover much of their losses from early in the week. The Europe-wide STOXX 600 rose 1.2 percent, the German DAX gained 1.4 percent, the French CAC rose 1.5 percent, and the UK FTSE 100 was up 1.2 percent. Energy stocks tracked rising crude oil prices higher.

Reports that the UK and Germany were poised to move ahead with reopening plans gave cyclical/value stocks a boost. Banks, industrials, autos, retail, and travel & leisure also outperformed. Basic resources lagged as commodities retreated, with iron ore prices down after Chinese authorities threatened to crack down on commodity speculators. Other laggards included chemicals, food & beverage, health care, telecom, and personal & household goods.

Among companies in the news, Sage, the UK software company, rose 3.8 percent on a profits beat and better guidance. Encavis, the German alternative energy business, rose 4.3 percent after raising its profits guidance. Sanne, the asset manager, rose 21 percent on news it has been approached for acquisition by private equity group Cinven. Banco BPM, the Italian bank gained 3 percent, and Diageo, the UK drinks giant, rose 1.5 percent after analyst upgrades.

Asia Pacific

Asian markets rebounded Friday as investors bought the dip and company news was mostly positive. Despite Friday's rise, markets were ending the week with losses and risk assets faced an overhang of inflation concerns and Covid worries.

China's Shanghai composite rose 1.8 percent and the CSI 300 gained 2.4 percent as growth stocks outperformed, and foreign buyers stepped back into the market. Most CSI sectors rallied, with financials, health care, and industrials outperforming while energy and utilities lagged.

Hong Kong's Hang Seng rose 1.1 percent as markets had appeared oversold headed into the weekend. Weakness in tech stocks limited the rise, with Chinese tech giants still facing pressure from Chinese regulators. Alibaba, the e-commerce platform, fell 4 percent after the firm posted its first operating loss, due to a $2.8 billion antitrust fine. Meituan, another e-commerce leader, fell 3 percent after its CEO's social media post was seen as criticizing the government.

Taiwan's markets tracked other Chinese markets higher with the benchmark Taiex stock index up 1.0 percent. Singapore lagged, with the Straits Times index down 2.2 percent after the government tightened its restrictions on gatherings and commerce to fight the coronavirus.

Japanese stocks recovered with the Nikkei up 2.3 percent and the Topix off 1.5 percent. Tech shares led, along with precision instruments and transportation. Isuzu, the carmaker, jumped 22 percent after better-than-expected guidance, and IHI, the industrial machinery maker, rose 8.8 percent on a profits beat.

Australia firmed with the All Ordinaries up 0.4 percent, but the market gave up most of the morning gains as inflation worries depressed growth/tech sectors. Energy led the winners as liquified natural gas stocks rallied. Defensive sectors advanced, with utilities and real estate outperforming. Banks, grocers, and miners also gained. Materials lagged on a selloff in industrial metals.

Global Stock Market Recap

Global Bond Market Recap

Global Currency Recap

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