China Stimulus Sees Hang Seng Up 13% This Week

Chinese blue-chip stocks surged this week, with the CSI300 index up 3.6% on Friday, driven by a series of stimulus measures from Beijing. Hong Kong's Hang Seng index experienced its biggest weekly gain since 1998, rising nearly 13%, as fiscal support and rate cuts have helped reverse losses year to date.

Equities

The FTSE 100 edged up 0.2% on Thursday, underperforming its European counterparts, as gains from China-exposed sectors were tempered by a fall in energy stocks.

The decline in oil prices hit major energy companies, with BP down 4.4%, after reports suggested that Saudi Arabia is preparing to increase output. Miners and luxury stocks, however, were bolstered by expectations of rising demand from China following the country's latest economic stimulus measures. Watches of Switzerland jumped 11.1% after Deutsche Bank upgraded its rating, and Burberry rose 8.7%, benefiting from strong China demand hopes.

In the US, the S&P 500 rose 0.4%, reaching a record high, with Micron Technology leading gains. The chipmaker’s shares surged 15.78% after it projected higher-than-expected first-quarter revenue, driven by strong demand for memory chips used in AI applications.

The broader Philadelphia Semiconductor Index climbed 3.77% as chip stocks rallied. Meanwhile, mining stocks also saw significant gains, with Freeport-McMoRan rising 7.45% on the back of higher copper prices, buoyed by China’s economic support plans. Lithium miners Albemarle and Arcadium added 9.92%.

Accenture’s stock climbed 5.57% after the IT services giant forecasted annual revenue above expectations, while Wells Fargo gained 5.19% following reports that the bank submitted a review to the Federal Reserve, potentially lifting restrictions on its asset cap.

The Dow Jones Industrial Average rose 0.62%, and the Nasdaq Composite advanced 0.60%.

Forex & Commodities

The US dollar weakened on Thursday after an initial boost from positive economic data faded. Weekly jobless claims in the US dropped to 218,000, a four-month low, but the dollar index still fell 0.42% to 100.52, marking its sixth decline in seven sessions.

Meanwhile, the Swiss franc rose 0.55% against the dollar following the Swiss National Bank's decision to cut interest rates by 25 basis points, with analysts expecting further cuts by December.

Gold continued to climb as central banks, including the Federal Reserve, shifted towards more dovish stances. Silver surged to $32.71 per ounce, gaining over 35% this year, benefiting from China’s stimulus measures and the rising demand for precious metals. The pound also gained 0.71% to $1.3417, poised for its biggest daily increase in a month.

Oil prices remained under pressure despite recovering slightly on Friday. Brent crude rose 0.21% to $71.75 per barrel, while US West Texas Intermediate crude edged up 0.27% to $67.85. However, both benchmarks were on track for significant weekly losses due to expectations of increased supply from Libya and OPEC+. Brent was down 3.7% for the week, and WTI was set to fall 5.7%.