Global Stock Market – Weekly (5-9 June) News and Analysis

 

Global Stock Market-Weekly Updates ( 5-9 June 2023): The global stock market indexes mostly closed higher during the week that ended on 9 June. On a weekly basis, the US, Japan, China, and Indian markets closed higher while Europe closed lower. Traders were busy analyzing the central bank’s interest rate decision and economic data during the week

 

The US Stock Markets – Weekly Updates

 

The US stock market indexes made decent gains during the week that ended on 9 June. The trading was subdued ahead of the Federal Reserve’s interest rate decision announcement on coming Wednesday. 

The markets were supported by tech stocks, a Tesla-led rally in consumer stocks, and an expectation of a Fed pause on rate hikes.  The S&P 500 index entered a new bull market territory, as it gained more than 20% from its mid-October lows.

The share price of Apple fell sharply after the company unveiled its new product at the annual developer’s conference on Monday. But the stock recovered most of its losses at the end of the week. Energy stocks jumped on Monday after Saudi Arabia decided to cut production in July on Sunday.

After the US debt ceiling deal, investors’ focus now shifted to the Federal Reserve Policy decision next week. The surprise interest rate hikes by the Central Bank of Australia and Canada hit the market sentiments during the week. 

The data released on Tuesday showed an unexpected contraction in the services sector, but the good part is it points to a continuing decline in services prices. The unexpected rise in weekly jobless claims fueled the hope that the Fed will pause the interest rate hike in the next week’s meeting.

The long-term US Treasury yields rose modestly during the week, as investors are preparing for the Federal Reserve monetary policy meeting next week. About 70% of traders expect the Fed will skip interest rate on Jun. 14, according to Investing.com’s Fed Rate Monitor Tool. 

 

European Stock Market Indexes- Weekly Updates

 

The major European stock market indexes closed lower during the week, as investors remained cautious ahead of the Central Bank’s policy and weak economic data. The major European indexes the UK’s FTSE, CAC, and DAX closed lower during the week that ended 9 June.

The market sentiments were subdued as European Central Bank (ECB) President Christine Lagarde and other officials hinted that the interest rates are likely to rise again in June. ECB officials have admitted that the price pressure is easing but not as per target.

 A survey conducted by the ECB shows Median consumer expectations for eurozone inflation in the year ahead fell in April to 4.1% from 5.0% in March.

The revised GDP data of the eurozone showed that the economy shrank by 0.1% sequentially in both Q1 and the last quarter of 2022, technically entering into recession. The retail sales data for April also shows that consumption remained weak in the euro area. 

Germany’s Factory orders fell in April compared to March and industrial output grew less than expected. The UK’s housing markets though improved in May but remained in the negative territory.

 

Asian Stock Markets Updates.

 

Asian stock market indexes closed mostly higher during the week. Traders were busy analyzing economic data and finding cues for US Federal Reserves’ next move on the 14 June Monetary Policy. The Indian stock market indexes closed slightly higher during the week You can read the about Indian stock market weekly updates here

 

Japan Stock Market

 

Japan’s Nikkei closed higher during the week, reaching its fresh 33-year high. The market sentiments remained upbeat due to the upward revision to Japan’s Q1 GDP on the back of strong corporate investment, as well as hopes that the Services Sector will remain strong and keep performing.

The Japanese Yen remains at six months low against the US dollar supporting the exporters and boosting the attractiveness of local assets to foreign investors. Investors remain cautious ahead of the Bank of Japan’s (BoJ) Monetary policy next week.

 

Chinese Stock Market

 

China’s Shanghai index closed slightly higher during the week. The upside remained capped due to weak economic data which indicates an economic slowdown in China. The latest May month inflation data pointed to a rising deflation risk, a sluggish property market, a fall in exports, and a high rate of youth unemployment also hit the market sentiments. However, the downside was limited due to solid growth in services activity and stimulus hopes to support the economy.

Hong Kong benchmark, the Hang Seng index closed higher during the week extending its previous week’s rally. 

 

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