This week started with more optimism about the US economy and further stock market gains until a sharp pullback on Wednesday snapped the US market’s nine-session winning streak. Thursday then saw a recovery, putting the S&P 500 back on track for an eighth week of gains, after US inflation data showed a gradual economic cooling in line with Fed hopes.

The last week in markets, as is often the case, was totally dominated by the US economy and monetary policy. In this case it was an encouraging inflation print on Wednesday, followed by the US Fed’s decision to keep rates on hold the next day.

It was a mixed week in global financial markets as the market continued to assess the likelihood of a hard or soft landing next year and the implication for inflation and interest

It was a mildly positive week for global markets, with the S&P/ASX 300 gaining 0.7%. International developed markets were down 0.4% in AUD terms as measured by the MSCI World ex-Australia index.

It has seemed all week that, in quiet US holiday trading, the only thing moving markets was the ‘will they/won’t they’ speculation about the future role of OpenAI’s CEO Sam Altman.

Stocks continued their strong November rally this week, as hopes grew that inflation has peaked and the Fed is nearing the end of its rate hiking cycle. The S&P 500 rose 1.9% on Tuesday following the cooler than expected US CPI print, bringing its gains for the month so far to 7%.