Global markets end week mixed amid economic uncertainty and AI concerns

US stocks recovered from early losses to finish mostly higher on Friday as hopes grew that Congress might resolve the government shutdown. The S&P 500 and Dow Jones rose 0.30%, while the tech-heavy Nasdaq flatlined, weighed down by AI names. Senate Republicans rejected Democrats’ proposal to scale back shutdown demands, but optimism over a potential deal boosted risk sentiment ahead of the close. The University of Michigan’s consumer confidence survey highlighted the economic impact, posting the second-lowest reading on record for November. Consumer defensive and energy stocks led gains, with Exxon Mobil, T-Mobile, and Coca-Cola rising over 2%. Meanwhile, concerns over stretched valuations pressured tech stocks, sending Tesla down 4% and Meta and Oracle down 2%.

European stocks closed sharply lower, with the STOXX 50 down 0.80% and the STOXX 600 off 0.60%, dragged by AI stock concerns and mixed corporate results. According to Trading Economics, Rightmove plunged nearly 12% on weak revenue guidance, IAG fell 7.30% after reporting flat revenue, and Novo Nordisk dropped 2.30% despite deal news. Gains came from ITV, up almost 15% on a potential £1.6 billion sale to Sky, and automakers Volkswagen, BMW, and Mercedes-Benz, buoyed by China lifting its Nexperia chip export ban. For the week, the STOXX 50 lost 1.70% and the STOXX 600 declined 1.20%.

Chinese shares snapped a two-day advance on Friday as China’s October exports unexpectedly fell 1% and import growth slowed to 1%, partly due to a high base effect from shipments front-loaded ahead of last month’s Xi-Trump meeting. Equities also reflected global weakness amid renewed concerns over elevated AI valuations, while authorities reiterated that new state-funded data center projects must use domestically made AI chips, “underscoring Beijing’s drive for technological self-sufficiency.”

South African markets ended the week on a cautious note as global risk‑aversion crept in. The JSE Top 40 slipped about 1% amid fears of stretched valuations and signs of weakening global trade. The rand held near R17.34/$, reflecting investor caution ahead of upcoming domestic economic releases. Bonds remained a relative bright spot, with yields edging lower as investors rotated into safer assets. Looking ahead, attention shifts to this week’s employment, mining and manufacturing data and the medium‑term budget statement for signals on the economy’s trajectory.

Oil prices edged higher for the day — with Brent crude around $63.60/ barrel and West Texas Intermediate crude near $59.75/ barrel — but logged losses for the week as concerns over global oversupply and weak demand dominated. Meanwhile, gold benefitted from safe‑haven flows as expectations of a possible rate cut by the Federal Reserve gained traction — spot gold rose to about $4 000/oz, supported by a softer dollar and economic uncertainty.