U.S. and European stocks ended mostly lower while avoiding the heavy declines seen in the Chinese stock market. Chinese shares fell around 5% on Friday as concerns over regulation and the industrial sector weighed down on the market. These declines, however, did not spread to other markets. The Shanghai Composite and the CSI 300 indexes both suffered they largest daily decline on over three months after news surfaced that regulatory policies would recommence their efforts against leveraged buying. Furthermore, China reported that large industrial firms’ profits have declined by 4.6%.
European stock markets ended mostly lower on Friday, as shares remained relatively unaffected by declines in the Chinese market. The German DAX 30 fell 27.01 points, or 0.24%, to close Friday’s trading session at 11,293.76. France’s CAC 40 fell 15.82 points, or around 0.3%, to trade at 4,930.14 and the UK’s FTSE 100 ended nearly 18 points lower, or 0.28%, to trade at 6375.15. A report released has shown that the European Commission’s index of economic confidence has remained at a four-year high in November, coming in slightly above expectations.
U.S. stocks remained little changed in Friday’s low-volume, post-Thanksgiving Day trading session. Friday’s trading volume was exceptionally low, with 2.79 billion shares exchanging hands compared to the average 7 billion. The Dow Jones industrial average declined 14.9 points, or 0.08%, to trade at 17,798.49, the S&P 500 added 1.24 points, or 0.06%, to trade at 2,090.11 and the Nasdaq Composite gained 11.38 points, or 0.22%, to close Friday’s trading session at 5,127.53. Od the S&P’s 10 major sectors, seven posted modest gains. The energy index shed 0.7% amid declines in oil prices while media and retailer stocks led the 0.4% decline in the consumer discretionary sector. Early holiday discounts and extreme weather kept shoppers away from stores, causing marked declines with many retailers, including Urban Outfitters (O:URBN), Gap Inc (N:GPS). and Signet Jewelers, declining 2.7%, 2.5% and 1.7%, respectively.
This week’s major economic data releases continue with the release of German inflation data on Monday. Chinese manufacturing data will be released early on Tuesday, followed by Canadian GDP and U.S. manufacturing data later in the day. Australian GDP and U.S. employment data will be released on Wednesday, while the European Central Bank is scheduled to make its interest rate decision on Thursday, followed by U.S. non-manufacturing PMI. The week will end with the U.S. nonfarm payrolls report, which holds special significance due to the Federal Reserve’s statements regarding a data-dependent interest rate hike in December.