European equity markets consolidated on Friday and CAC, IBEX and London stock exchanges ended fairly flat, while the DAX gained 0.3%, ending the week on the positive side, breaching above 9,400 points.
In the US, equity markets on Wall Street extended gains with both S&P 500 and Dow Jones gaining more than 0.3%, at the time of writing, remaining on track for their third consecutive month of strong gains. Please note that US stock markets will close three hours earlier today at 1800 GMT, due to the US Thanksgiving holiday weekend.
On the macroeconomic front, there was some fairly disappointing economic data from the UK and Eurozone which weighed slightly on market sentiment and limited any risk appetite. Eurozone inflation rose to 0.9% in November, more than analysts expected, up from 0.7% in October, while the unemployment rate fell to 12.1% in October compared to 12.2% in September. German retail sales declined by 0.8% in October, missing analysts’ estimates, while GfK consumer confidence in the UK fell to -12 in November from -11 in October.
The global equity markets have been on strong upside momentum in the last few months due to increased risk appetite and amid hopes the US Federal Reserve will continue its QE programme for the short-term, following the latest FOMC statement. Thus, it seems that the strong upside rally is not running out of steam anytime soon.