- Stocks rose and bond yields fell as further evidence of an economic slowdown spurred investors to increase their bets on interest-rate cuts next year.
- Europe's Stoxx 600 index rose 1%, putting it on track for a nearly 3% gain this week. US futures rose, with Gap soaring 17% in premarket trading after reporting third-quarter profit that exceeded forecasts. Bonds added to Thursday's gains, with markets now pricing in a full percentage point of rate cuts from the European Central Bank next year.
- This week's soft inflation and job data in the United States fueled the belief that the Federal Reserve's and other central banks' aggressive policy-tightening cycles are finally coming to an end, prompting $23.5 billion into stock funds in the week through Nov. 15, the second-largest inflows of the year, according to Bank of America, citing EPFR Global data.
- However, there are evidence that the rate hikes are finally slowing economic growth. Oil prices have fallen into a bear market, down 20% from their September highs, and the CEO of Walmart, the world's largest retailer, stated on Thursday that he sees the potential for deflation.
- Weaker than expected UK Retail Sales led to weakening of Sterling.
- ECB's Holzmann: The ECB won't cut interest rates in 2Q.