Shares in Europe paused after last month’s strong rally.


All major indexes touched new intraday highs last week. The Dow Jones Industrial Average closed out November with its best monthly performance since 1987, while the small-cap Russell 2000 Index registered its best monthly gain since 1978, when it was introduced to the markets.

The OPEC and other major oil producers agreed to ease output cuts more gradually next year than previously planned, which made energy stocks to bounce back. On Wednesday, the UK as the first Western nation granted approval to authorize the widespread distribution of the Covid 19 vaccine from Pfizer-BioNTech companies.

According to the Federal Reserve´s data, nonfarm payrolls missed consensus expectations by almost half, rising by only 245,000 om October. But the unemployment rate fell to a pandemic low of 6.7%, which helped stocks to rise on Friday. The manufacturing sector remained in good shape, but the housing sector showed signs of cooling, with pending home sales falling in October for the second consecutive month.


Shares in Europe paused after last month’s strong rally. The pan-European STOXX Europe 600 Index ended the week with a modest 0.21% gain. Major European indexes were mixed: France’s CAC 40 ticked up 0.20%, Germany’s DAX Index fell 0.28%, and Italy’s FTSE MIB slipped 0.78%. The UK’s FTSE 100 Index, however, gained 2.87%, reaching nine-month highs on news that the UK had approved the coronavirus vaccine developed by Pfizer and BioNTech.

The eurozone purchasing managers’ index (PMI) had declined from the previous month, driven by weakness in the services segment of the economy. Consumer prices in the eurozone declined 0.3% year over year in November, the fourth consecutive month of negative inflation. Yields on UK sovereign bonds rose after regulators approved a coronavirus vaccine for use; however, fears of a no-deal Brexit and dovish comments from the Bank of England’s Michael Saunders on Friday moderated the move in gilts.


Japanese stocks posted mixed results for the week. The Nikkei 225 Stock Average advanced 0.4% (107 points) and closed at 26,751.24. For the year-to-date period, the benchmark is ahead 13.1%. The large-cap TOPIX Index and the TOPIX Small Index, broader measures of Japanese stock market performance, recorded modest weekly declines. The yen was little changed versus the U.S. dollar and traded near JPY 104 on Friday.

Japan’s industrial production increased 3.8% in October from September, marking the fifth consecutive monthly improvement. The gains were powered by rising output in industrial machinery, automotive, and electronics, and core capital goods shipments were the highest since the onset of the global pandemic.

Unemployment edged higher in October to 3.1% due to significant job losses in the hospitality sector. However, the retail, construction, and manufacturing sectors added more jobs last month.


Chinese stocks posted their third straight weekly gain, aided by solid economic data. The large-cap CSI 300 Index rose 1.7%, and the benchmark Shanghai Composite Index gained 1.1%, according to Reuters. The yield on China’s 10-year sovereign bond edged lower 3 basis points to end at 3.33%. In currency markets, the renminbi appreciated by 0.5% against the U.S. dollar to CNY 6.5342. 

Official manufacturing PMI rose to 52.1 in November from October’s 51.4, its ninth straight month of staying in expansionary territory and further evidence of a sustained recovery.