Chinese stock markets have wrapped up a buoyant first week of 2026, with the Shanghai Composite up close to 3 percent since Monday, hitting a decade high, according to China Global Television Network's financial market analyst Timothy Pope on Friday.
Chinese stocks closed higher on Friday, with the benchmark Shanghai Composite Index up 0.92 percent to 4,120.43 points.
The Shenzhen Component Index closed 1.15 percent higher at 14,120.15 points.
"The markets have wrapped up a very buoyant first week of the year, with the Shanghai Composite up close to 3 percent since Monday, and 0.9 percent today alone, taking it to a fresh decade high. I feel like I've already used those words a lot this week. The Shenzhen Component added almost 1.2 percent today, also had a very good day. Today the market got some welcome news in the latest inflation data, showing consumer prices rose to a three year high in December. The CPI was up 0.8 percent with particularly big jumps in the price of foods, so fresh vegetables and beef in particular, that's according to the National Bureau of Statistics, but both signs of easing consumer deflationary pressure, was definitely welcomed by the market, as was signs in the producer price index, that was responding to the governments campaign against involution, is starting ease pressures there," said the analyst.
"But it has been pointed out by market analysts that investors are still favoring non-consumer facing sectors when it comes to equities at the moment, so some of that is coincidental, some of it's not. Investors are still chasing metals stocks, in particular, gold miners still riding high on Friday despite a drop in the price of spot gold. But in China we have actually seen the gold bullion trading at a huge premium this week, more than 20 dollars above the global spot price this week, with interest in bullion only growing in the new year. And that's been reflected in equities. But most sectors trading higher today, we saw the big exception being financial stocks, so there was some profit taking on the big banks and insurers after some gains earlier in the week," he said.
China stock markets wrap up buoyant first week of 2026: CGTN market analyst
U.S. stocks closed higher on Monday, as strength in artificial intelligence and technology stocks overcame a renewed surge in Treasury yields to 24-year highs.
The Dow Jones Industrial Average rose 90.94 points, or 0.18 percent, to 51,267.90. The S and P 500 added 51.23 points, or 0.66 percent, to 7,773.95. The Nasdaq Composite Index increased by 286.45 points, or 1.05 percent, to 27,477.31, notching a record closing high.
Ten of the 11 primary S and P 500 sectors ended in the green, with materials and communication services leading the gainers by adding 1.22 percent and 1.14 percent, respectively. Real estate bucked the trend, losing 0.44 percent.
U.S. Treasury yields climbed back toward multidecade highs on Monday. The benchmark 10-year yield settled at 5.31 percent, its highest close since April 2002, after trading above 5.35 percent intraday. The 30-year yield rose 3.5 basis points to 5.66 percent, its highest settlement since May 2002. The two-year yield stood at 4.83 percent.
Oil prices fell as traders weighed the Group of Seven's agreement to release 100 million barrels of crude and diesel from emergency reserves, alongside recovering Middle East exports. The West Texas Intermediate for November delivery decreased by 1.68 U.S. dollars, or 1.84 percent, to settle at 89.43 dollars a barrel. Brent crude for December delivery lost 1.93 dollars, or 1.89 percent, to settle at 100.32 dollars a barrel.
On the corporate front, Nvidia rose more than 2 percent to a record high for the second straight session, remaining the world's most valuable public company. PTC soared 33.49 percent, the S and P 500's best performer, after Schneider Electric agreed to acquire it at 205 dollars per share in a 22.6-billion-dollar all-cash deal, a 42.3 percent premium. By contrast, Schneider fell nearly 10 percent.
SpaceX jumped over 7.5 percent after Morgan Stanley initiated coverage with an overweight rating and a 300-dollar target. Western Digital climbed over 6 percent and Seagate gained about 4.5 percent, rebounding from Friday's plunge on a Toshiba capacity report. Cerebras gained 9.08 percent after OpenAI's Sam Altman called it a "close partner."
On the economic front, the ISM services index for September came in at 54.9, down from 55.4 in August and roughly in line with expectations. Traders see about a 24 percent chance of a rate hike at the Fed's October meeting, down from 71 percent a week ago, according to CME FedWatch.
U.S. stocks close higher despite surging Treasury yields
