Stocks in the US closed higher on Friday, with the S&P 500 up 0.3% and the Dow gaining 426 points. Meanwhile, the Nasdaq only added 0.1%, weighed down by declines in major tech stocks like Nvidia (-3.2%) and Alphabet (-1.7%). Mega cap stocks faced mixed performance, with Tesla gaining 3.8%, while Meta and Amazon saw modest losses, falling 0.7% and 0.6%, respectively. Investor rotation from technology into economically sensitive sectors like financials, industrials, and consumer discretionary supported broader market gains. Additionally, Wall Street awaits the announcement of Trump's Treasury secretary pick, a decision that could influence market sentiment. Additionally, former Florida Attorney General Pam Bondi has been selected as U.S. attorney general, following Matt Gaetz's withdrawal from consideration. For the week, all three major indices booked gains to end a volatile week, with the S&P 500 and Nasdaq up 1.7% each, while the Dow rose by 2.1%.

The shortened holiday week in the United States will center on the FOMC meeting minutes, PCE inflation data, personal income and spending figures, the second estimate of Q3 GDP growth, and the Conference Board's consumer confidence index. Additionally, attention will be on durable goods orders, corporate profits, new and pending home sales, and the S&P/Case-Shiller Home Price Index. Elsewhere, Inflation figures from Australia, Spain, Germany, the Netherlands, France, Poland, the Euro Area, and Italy will be closely watched. Turkey, Switzerland, India, and Canada will release their latest GDP growth rates. Germany will publish its unemployment rate, the Ifo Business Climate Index, Gfk consumer confidence, and retail sales data. Lastly, interest rate decisions are expected in South Korea and New Zealand, while Japan will reveal retail sales, industrial production, unemployment rate, housing starts and consumer confidence figures.

Retail sales in Canada are expected to have surged by 0.7% from the previous month in October of 2024, according to a flash estimate. This would mark the fourth consecutive expansion in retail turnover, extending the 0.4% increase in September, which was revised upward from the preliminary estimate of 0.3%. The increase was owed to higher turnover in sales in multiple industries, with sharp growth in food and beverage retailers (3%), furniture retailers (0.4%), general merchandise retailers (0.8%), and health and personal care retailers (0.5%). In turn, turnover was lower in gasoline stations and fuel vendors (-2.3%) as lower oil benchmarks lowered the cost of fuel. Sales were also lower in motor vehicle and parts dealers (-0.7%). From the previous year, retail sales were 0.8% higher.

The Euro dipped sharply to $1.035, marking its lowest level since November 2022, following the release of PMI data revealing ongoing weakness in Euro Zone business activity. The HCOB Flash Eurozone Composite PMI dropped to 48.1 in November from 50 in October, significantly below the anticipated 50, as the services sector contracted for the first time in ten months, mirroring the persistent downturn in manufacturing. Earlier this week, in its annual Financial Stability Review, the ECB highlighted that heightened geopolitical tensions and policy uncertainties are amplifying sovereign vulnerabilities, while rising global trade tensions are increasing the likelihood of adverse economic shocks. Adding to these concerns, the conflict between Russia and Ukraine intensified, with Russia launching a new type of ballistic missile at Ukrainian targets recently.

The HCOB Eurozone Composite PMI fell to 48.1 in November of 2024 from 50 in the previous month, missing expectations of 50 to mark the sharpest contraction in the bloc’s private sector activity according to preliminary estimates. The result consolidated the poor momentum for demand in the Eurozone’s largest economies, with fresh weakness in the previously-resilient service sector (49.2 vs 51.6 in October) magnifying the impact of a deeper contraction for manufacturers (45.2 vs 46). Aggregate output was lower for the second time in three months, with both sectors recording contractions for the first time this year. This was due to sharp drops in new orders, as the depletion of backlogs could not sustain activity. Consequently, the lower demand for capacity drove firms to shed their workforce. On the price front, input cost inflation rose to a three-month high, accelerating output charges. Looking forward, confidence in the year ahead waned.

The HCOB Flash Germany Composite PMI decreased to 47.3 in November 2024, the lowest in nine months, compared to 48.6 in October and well below forecasts of 48.6. The reading showed that business activity fell for the fifth month running and at the quickest rate since February. Sustained weakness in manufacturing (43.2 vs 43) was compounded by the first decrease in services activity for nine months (49.4 vs 51.6). Weaker demand for goods and services led to further job losses and input cost and output price inflation ticked up to the highest for three months, reflecting stronger price pressures in the service sector. On the other hand, business expectations meanwhile edged up further from September’s recent low, although confidence was still subdued by historical standards amid a backdrop of economic and political uncertainty.