Europe’s manufacturing sector continues to struggle. Oil prices fell below $58 per barrel

By Friday’s close, the Dow Jones Index (US30) rose by 1.08% (weekly -1.75%). The S&P 500 Index (US500) gained 0.98% (weekly -1.65%). The Nasdaq (US100) closed higher at 0.77% (weekly -2.61%). Despite Friday’s gains, all indices ended the week in negative territory. The technology sector weakened again: Nvidia (-1%), Microsoft (-1.3%), Broadcom (-1.9%), AMD (-1.1%), and Oracle (-5.7%) came under pressure as investors continued to reassess lofty valuations of AI‑related companies.

Meanwhile, the University of Michigan Consumer Sentiment Index for November rose to 51.0 from the preliminary 50.3 after the end of the federal shutdown. Despite the slight increase, the figure remains the second lowest on record, only slightly above the June 2022 low, as households continue to face high prices and declining real incomes. One‑year inflation expectations edged down from 4.6% to 4.5%, marking the third consecutive monthly decline, though still well above January’s 3.3%.

The Mexican peso (MXN) weakened to 18.45 per US dollar. Mexico’s economy contracted in Q3, with GDP down 0.3% q/q. Manufacturing activity weakened notably, pointing to slower growth and exports than expected, raising doubts about the sustainability of the high interest rate premium. In November, the Bank of Mexico began an easing cycle, cutting the key rate by 25 bps to 7.25%. Meeting minutes signaled a more cautious approach to further cuts, reducing the appeal of carry trades that had previously supported the peso.

European stock markets fell on Friday. Germany’s DAX (DE40) dropped 0.80% (weekly -3.34%), France’s CAC 40 (FR40) edged up 0.02% (weekly -2.12%), Spain’s IBEX 35 (ES35) fell by 1.04% (weekly -3.02%), and the UK’s FTSE 100 (UK100) closed positive 0.12% (weekly -1.64%). All indices ended the week in negative territory. Preliminary PMI data showed Europe’s manufacturing sector remains weak, while service sector growth slowed in November. The Eurozone manufacturing PMI fell to 49.7, below the prognoses of 50.2. A reading below 50 signals contraction. The decline reflects ongoing drops in new orders and employment, with manufacturing jobs shrinking monthly for two and a half years straight.

WTI crude oil prices fell more than 2% to $57.5 per barrel, hitting a one‑month low. Pressure increased after Ukraine’s President Volodymyr Zelensky expressed readiness to continue peace talks. A draft agreement developed by the US and Russia is expected to be discussed further at Zelensky’s upcoming meeting with President Donald Trump. Reports suggest proposals include territorial concessions by Ukraine and partial sanctions relief, potentially boosting Russian oil exports and raising oversupply concerns. European diplomats remain skeptical about the likelihood of an agreement.

Asian markets also traded under pressure last week. Japan’s Nikkei 225 (JP225) fell by 3.29%, China’s FTSE China A50 (CHA50) dropped 3.06%, Hong Kong’s Hang Seng (HK50) declined 4.62%, and Australia’s ASX 200 (AU200) posted a five‑day loss of 2.18%.

The New Zealand dollar is trading near a seven‑month low amid expectations of an imminent rate cut by the Reserve Bank of New Zealand. Markets have fully priced in a 25 bps cut, with a small chance of a more aggressive 50 bps move. Traders’ focus will be on RBNZ rhetoric after the decision: analysts believe this cut may be the last in the current cycle unless the global situation worsens significantly.

Annual inflation in Singapore accelerated to 1.2% in October 2025 from 0.7% the previous month, reaching the highest level since January. Core inflation also rose to 1.2% from 0.4% in September, the highest in ten months. In a joint statement, the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry noted that import costs are likely to continue declining, though at a more moderate pace.