Global Stock Market News and Weekly Analysis
Weekly Stock Market News & Analysis (7-11 March): The global stock markets were closed mixed for the week ended 11 March due to the ongoing Russia-Ukraine war. The market volatility was at its highest due to a price surge in crude oil and other commodity items. Investors across the globe are now in fear of higher inflationary pressure and slow economic growth. But we feel that the impact of inflationary pressure may not be as severe and immediate.
US stock market news
Due to the extreme volatility in the markets, the US key indexes closed in the red for the week ended 11 March. Nasdaq Composite fell nearly 22% from its recent peak and entered into bear phase last week. The surge in crude oil and other commodity prices dominated the US market sentiments during the week. The reports of a possible ban on Russian oil in the US surged the crude oil price to $139 at a multi-year high and dented the market sentiments.
However, the downside of the markets remained capped as the crude oil prices fell sharply in the mid of the week after United Arab Emirates officials stated that the country was willing to increase production substantially. The US market sentiments also improved ahead of the high-level peace talks between Russia and Ukraine.
The economic data released during the week in the US was roughly in line with the market expectation. The consumer price index matched as per market expectation, increasing 0.8% in February and 7.9% in 12 months. Weekly jobless claims marginally increase above expectation but remained at low levels, whereas January’s job openings beat expectations at 11.26 million.
European stock market news
European market indexes rebounded in a volatile week of trading, as investors are in hopes that a diplomatic solution between the Russia-Ukraine crisis might emerge soon. The markets closed higher on a weekly basis, despite some severe sanctions were imposed by the EU and UK along with Russian including cut-off from SWIT payment messaging system and shutdown airspace.
However, the upside of the markets capped as Core euro zone bond yields climbed after inflation expectations strengthened due to a surge in crude and other commodity prices. The surprise European Central Bank (ECB) hawkish announcement to wind up bond-buying program soon than expected also hit market sentiments during the week.
Asian stock market news
Indian equity markets snap a four-week losing streak and gained more than 2 percent on a weekly basis. A sharp fall in the elevated crude oil prices and a strong performance by the BJP and their allies in the assembly elections supported the equity markets to close higher for the week.
Japan’s stock market indexes closed lower for the week as uncertainty about the Russia-Ukraine crisis continued to dent the market sentiment. Investors were also concerned about the surge in global commodity prices and the hawkish stance of many central banks’ policies. Although Japan’s core consumer price inflation remains muted, the consumer-producer price index rose 9.3% in February recording the steepest gain mainly due to higher energy prices. Bank of Japan (BoJ) remains dovish even after rising fuel costs.
China’s Shanghai recorded a weekly loss amid a resurgence in Covid-19 cases and due to the Russia-Ukraine war. The Ukraine war has elevated the price of industrial metals and commodity prices. China’s producer price index rose 8.8% in February slightly above forecast while the consumer price index was in line with the expectation. The pace of export and import growth has been slow down in January due to the Russia-Ukraine conflict.
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