Global Stock Market Indexes End 2023 Positively: Weekly Analysis
Global Stock Market Weekly Analysis (26-29 Dec 2023)
Global stock market indexes closed higher during the holiday-shortened week. The markets were mostly closed on December 25th in observance of Christmas. Additionally, several markets extended their holiday period until December 26th to observe Boxing Day. The market volume was thin as traders were mostly on a holiday break between Christmas and New Year.
The US Stock Markets – Weekly Updates
The US equity benchmarks ended in the green territory for the holiday-shortened week. The S&P 500 index will have to wait till next year to hit an all-time high. The indexes concluded the year with their ninth consecutive weekly gains and finished on a positive note.
The Dow Jones and S&P 500 gained over 13% and 24%, respectively in 2023, while the Nasdaq Composite closed on a record gain of over 44%, its biggest yearly gain since 2003. As widely expected, trading volume was thin, and market moves were muted through most of the week. Traders were in a holiday mood in the period between Christmas and New Year.
During the week, several important developments on the artificial intelligence (AI) front were reported. A report showed on Wednesday that Sam Altman, the CEO of ChatGPT and former Apple design chief, is planning to develop an AI device.
On the other hand, The New York Times initiated legal action against generative AI companies for copyright infringement due to the utilization of their content to train ChatGPT and other large language models developed by these firms.
On the economic front, the data released during the week was very limited and in a negative tone. The index of Mid-Atlantic manufacturing activity fell sharply in December and contracted at the fastest pace since February. The pending home sales were reported flat in November, while weekly jobless claims rose unexpectedly.
European Stock Market Indexes- Weekly Updates
European stock market indexes mostly closed higher during the week. The pan-European Stoxx 600 Index gained 0.41% this week on optimism about interest rate cuts in early next year. The major indices Germany’s DAX and the UK’s FTSE gained, while Ytly’s FTSE MIB and France’s CAC ended the week with little change.
A flash survey of consumer price inflation in Spain showed that the CPI inflation in December dropped to 3.1%, while the expectation was 3.3% as per the economist polled in FactSet. This is due to the decline in motor fuel prices.
The European Central Bank (ECB) policymaker in an interview, said that the ECB is unlikely to raise rates again, due to slowing inflation. Meanwhile, another ECB official said that “ it is too early to talk about lowering borrowing costs and such a move in 2024 is anything but certain”
The UK’s housing markets remained weak, the transactions were below pre-pandemic levels in the last six months. The data from Nationwide Building Society’s house price index was flat in December sequentially and fell 1.8% annually, its largest annual decline in the last 15 years.
In the meantime, Bank of England (BoE) Governor Andrew Bailey said that inflation could hover just below 4% by the end of the first quarter in 2024. He further said to reach the 2% target, it is necessary to keep the interest rate at levels that could control the upward pressure on prices.
Asian Stock Markets Updates
The Asian stock market indexes closed higher this week. Indian stock markets rallied this week and ended with a robust gain in 2023. The stock market indexes of China, Hang Seng, Japan, South Korea, and Australia all ended higher in the last trading week of 2023. You can read about the Indian stock market updates here.
Japan Stock Market
Japan’s Nikkei finished higher in the last trading week of the year 2023. The market sentiments were positive as investors were hoping that the Bank of Japan (BoJ) would continue with its ultra-lose interest rate policy in 2024. The Nikkei index gained more than 28% in 2023, registered as the best-performing index in Asia.
On the macroeconomic front, the data released during the week were mixed and had little impact on the market. The November unemployment rate was steady, while the industrial output fell for the first time in three months but less than market expectation. Retail sales rose sharply in November on an annual basis, as consumption recovered since the pandemic.
Chinese Stock Market
China’s Shanghai index closed higher during the week, snapping a six-week losing streak. The market sentiments improved after Chinese regulators announced a draft of new online gaming rules designed to curb spending. Imposing restrictions on online gaming and rewards caused stocks to fall sharply in the previous week.
The macroeconomic data released during the week showed that Industrial Profits increased in November, from the same period last year and from October, as Bejing’s latest stimulus measures support the growth. Economists have predicted that China’s GDP to slow to 4.6% in 2024 from 5.2% in 2023, due to growing deflationary pressure and a slowdown in the property sector.
In Hong Kong, the Hang Seng Index closed sharply higher during the week.
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