Global Stock Market-Weekly Updates (31 Oct – 4 Nov)
Global Stock Market-Weekly Updates ( 31 Oct- 4 Nov): The global stock market indexes mostly ended in the green during the week. The equity markets in the US closed lower, whereas European, China, and Japanese indexes ended higher for the week.
Global Stock Market Weekly Updates ( 31 Oct- 4 Nov)
The US Stock Market- Weekly Updates ( 31 Oct- 4 Nov)
The US stock market indexes closed lower on a weekly basis as investors’ hope for a pause or slower pace of interest rate hikes got smashed after the Federal Reserve’s policy outcome. The IT stocks were hit the most as growth stocks decline more than value companies.
The US indexes recovered sharply after the Fed announced 75 bps interest rate hikes on 2nd Nov, as widely expected. However, Fed Chair Powell’s press conference took a hawkish turn, after he said it is very premature to consider pausing rate hikes, more hikes are on the card to tame inflation. The US markets fell sharply and erased early week’s gains after Powell’s conference. The two-year US. Treasury note yield reached a 15-year high above 4.75% during the week.
However, the US markets erased some weekly losses on the final day of the week after the job report. The October job report painted a mixed picture. The labor department showed that 261000 jobs were added, which is above the estimates. However, the unemployment rate rose to 3.7% in October from 3.5% in the previous month raising hope for a slower pace interest rate hike in the next meeting.
European Stock Market- Weekly Updates
European markets rallied during the week that ended on 4 November, as the central banks signaled that they may slow down the increasing pace of interest rate hikes. The markets sentiments were upbeat on the hopes that China might ease Covi-19 restrictions and walk back its zero-covid policies.
The upside remained capped as the inflation rate in the eurozone accelerated more than expected in October and GDP growth slowed down in the third quarter. The Bank of England hiked its key interest rate by 75 basis points, the highest level since 2008 to curb the record high inflation.
Japan’s Equity Market- Weekly Updates
Japan’s Nikkei index closed marginally higher for the week, erasing some gains due to the US Federal Reserve’s hawkish stance. The market ended higher on a weekly basis, as Japan’s services sectors showed growth in October. The sentiments got further improved by the news of China reopening.
The BoJ’s September months minutes suggested that Japan’s economy had picked up, as an increasing trend was seen in exports and industrial production. The report further said that private consumption had returned to a slightly upward direction with consumer confidence rising slowly on monthly basis.
China’s Equity Market- Weekly Updates
China’s stock market index rose last week on speculation that the country is reopening. The government is preparing to ease Covid-19 restrictions and may relax its Zero-Covid policies that hinder the country’s economic growth for a long.
On the economic front, the official PMI data for manufacturing and non-manufacturing activity in China showed a contraction in October. However, the private Caixin PMI reading reports a slight growth in manufacturing activity in October.
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