Daily market review

United States

Major stock indexes advanced into the close Friday with megacaps leading and growth stocks outperforming for a second day as the market built on its recent strength. The Dow Jones industrial average rose 0.8 percent, the S&P 500 gained 1.2 percent and the NASDAQ rose 2.1 percent.

The market saw strong gains among heavily weighted big tech stocks, including Apple, up 2.1 percent, and chipmakers, including Nvidia, up 6.8 percent, alongside big consumer discretionary stocks, like Tesla, up 3.9 percent, and Amazon, up 2.6 percent, and communications plays, including Discovery Communications, up 2.2 percent, and Netflix, up 2.5 percent.

Long-term market interest rates declined while short-term rates rose, flattening the yield curve, to suggest a weaker long-term growth outlook. Some cyclicals lagged, including financials, materials, and industrials, amid worries over the Ukraine situation and hawkish central banks.

Among companies in focus, FedEx slipped 4.0 percent after an earnings miss reflecting Omicron effects and surging labor costs. Tesla got a boost after Morgan Stanley repeated its overweight rating. Moderna, the vaccine maker, rallied 6.4 percent on news it will seek approval for a second Covid booster for adults.

These price data reflect observations at 4:00 PM US ET: Dated Brent spot crude oil rose 65 cents to US$107.59 while spot gold fell US$16.25 to US$1,920.36. The US dollar was mixed vs. major currencies. The US Treasury 30-year bond yield declined 8 basis points to 2.41 percent, and the 10-year note yield fell 5 basis points to 2.15 percent.


Equities edged up Friday with support from company news and gains on Wall Street. The Europe-wide STOXX 600 rose 0.9 percent, the German DAX firmed 0.2 percent, the French CAC rose 0.1 percent and the UK FTSE 100 was up 0.3 percent.

The STOXX 600 rose about 5 percent on the week for a second straight week of gains. Hopes for progress in Russia-Ukraine talks propelled the recovery but headlines on the talks Friday left markets uncertain headed into the weekend.

Sectors were mixed Friday with basic resources, technology, travel & leisure, financial services, and retail outperforming while oil & gas, telecom, and autos & parts lagged.

Among companies in focus, mega-miners Anglo American rose 2.0 percent and Glencore gained 0.9 percent after analyst upgrades. Meanwhile, Vodafone, the telecom, rose 1.0 percent on reports several investors want to invest in its mobile phone mast business. Enel, the utility, rose 0.7 percent after raising its dividend.

On the downside, Renault lost 0.4 percent as investors continued to focus on its exposure in Russia. Daimler slipped 2.2 percent and VW was off 0.9 percent as the market focuses on chip shortages and other supply chain trouble. Michelin, the auto parts giant, eased by 0.2 percent after reporting disappointing tire sales. Vonovia, the real estate company, fell 2.6 percent after an earnings miss.

Asia Pacific

Asia-Pacific equities ended mostly better Friday, following a positive close Thursday on Wall Street.

Chinese markets rose on speculation that the People's Bank of China will provide more stimulus as part of a wider government pro-growth effort announced this week. Investors awaited details on the government pledge to rein in a regulatory push and other steps to boost financial markets. The CSI 300 index rose 0.7 percent and the Shanghai composite gained 1.1 percent with real estate outperforming and tech stocks lagging. Hong Kong's Hang Seng index eased 0.4 percent as weakness in internets and tech stocks outweighed a better showing for oil & gas.

Japanese markets improved to extend the week's advance with support from overnight strength. The Nikkei 225 rose 0.7 percent and the broader TOPIX firmed 0.5 percent, with most sectors better and growth stocks leading. Reaction was limited to mostly as-expected Japanese consumer price figures and the Bank of Japan policy announcement.

The Taiwan Taiex firmed 0.1 percent and the South Korean KOSPI gained 0.5 percent as tech stocks rose again. The Indian market was on holiday.

Australian equities rose to conclude a strong week with most sectors higher, and energy, technology, and materials leading. The All Ordinaries index gained 0.7 percent. The market's bullish narrative sees banks benefiting from rising yields, rising commodities prices boosting miners and energy stocks.

Global Stock Market Recap

Global Bond Market Recap

Global Currency Recap

Commodities and currencies

Looking forward