Global stocks hit record highs on Friday, driven by China’s major stimulus measures to promote economic growth and favorable US inflation data, Reuters reports.
The European STOXX 600 index rose 0.5%, with Germany’s DAX, France’s CAC 40, and Britain’s FTSE 100 up between 0.3% and 1.2%, while S&P 500 futures indicated further gains. The US personal consumption expenditures (PCE) price index showed cooling inflation in August, fueling expectations of a Federal Reserve interest rate cut in November.
Chinese stocks surged after Beijing’s pledge to boost economic growth, with blue-chip stocks rising 4.5%, contributing to a 15.7% weekly rise, the best performance since 2008. Hong Kong’s Hang Seng index rose 3.6%, with a 13% weekly gain, the strongest since 1998. Meanwhile, the Japanese yen gained 1.5% against the dollar after former Defense Minister Shigeru Ishiba appeared set to become Japan’s next prime minister.
Commodities like iron ore surpassed $100 per ton, and copper rose above $10,000 per ton. However, Brent crude oil fell 0.1% to $71.50 per barrel, down 3.9% for the week as Saudi Arabia prepared to increase output. US Treasury yields fell slightly, with two-year yields dropping 3.3 basis points to 3.5878% and 10-year yields down to 3.7563%. Market expectations grew for further interest rate cuts by the European Central Bank (ECB).
