Dow Jones Closes Near Record Highs As Stock Markets Resume Uptrend
Stock markets were trending lower early this week, but reversed higher on Wednesday, with Dow Jones closing the week at $44,300 points.
Despite the dismal flash European PMI report for both manufacturing and services, the major European indices started the day lower but later turned around and ended the day higher. The manufacturing PMI indicated that as the industry sank deeper into the recession, activity slowed even more, and this month’s downturn was also seen in the services sector. However, with Dow Jones closing at $44,300 points, neither US nor European stock purchasers were put off.
Dow Jones Chart Daily – Close to All-Time Highs
European Markets Summary
Closing Changes for Main European Bourses (Daily)
- German DAX: +0.89%
- France’s CAC: +0.58%
- UK’s FTSE 100: +1.38%
- Spain’s Ibex: +0.39%
- Italy’s FTSE MIB: +0.60%
Weekly Performance
- German DAX: +0.58%
- France’s CAC: -0.20%
- UK’s FTSE 100: +2.46%
- Spain’s Ibex: +0.10%
- Italy’s FTSE MIB: -2.04%
European Bond Yields (Weekly Change)
- Germany: -9.5 basis points
- France: -2.7 basis points
- UK: -6.8 basis points
- Spain: -8.0 basis points
- Italy: -3.9 basis points
Key economic indices painted a mixed picture. The manufacturing index rose to 48.8 points from 48.5, signaling stabilization in the sector. The services index surged to 57.0 points, the highest in 40 months, up from 55.0 previously, reflecting strong growth. The composite index climbed to 55.3 points from 54.1, indicating a strengthening of overall economic activity. Despite continued challenges in employment and subdued inflation, the resilience in services and improvements in key indices point toward underlying economic momentum, offering hope for a more robust recovery in the coming months.
S&P Global Flash PMIs (November Data)
Manufacturing Index
- Current: 48.8 (unchanged from estimate, prior: 48.5)
Services Index
- Current: 57.0 (vs. 55.2 estimate, prior: 55.0)
- Best services reading in 40 months.
Composite Index
- Current: 55.3 (prior: 54.1)
Employment trends revealed a challenging environment in November, with job losses reaching a three-month high and marking the fourth consecutive month of declines. The services sector faced significant payroll reductions, while the manufacturing sector added jobs for the first time in four months, partially offsetting losses in services. Despite these challenges, business confidence about the year ahead improved, suggesting a cautious optimism for recovery.
Inflation showed only a slight increase in November, the smallest rise since June 2020, remaining below pre-pandemic long-term averages. In the services sector, prices rose marginally, marking the slowest rate of inflation since May 2020. Meanwhile, manufacturing sector prices experienced a modest uptick, reflecting a slight increase in inflationary pressures.
Dow Jones Index Live Chart
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