Global Stock Market Weekly Overview
The global stock market indices mostly ended higher during the week. The world markets were focused mainly on quarterly earnings, the US Fed official’s speech, and economic data. There was no major event lined up during the week. The equity benchmarks in the US and major indices in Asia and European stock markets closed mixed during the week.
The US Stock Markets – Weekly Updates
The key equity benchmarks ended higher during the week. The S&P 500 index was close to its longest winning streak in almost two decades on Wednesday, gaining the eighth straight day, while the Nasdaq Composite Index marked its ninth-day winning streak.
On an earnings front, the market got some surprises from the technology-oriented company and supported the growth indexes. US Treasury debt auction played a surprisingly significant role in influencing the market sentiments of both stock and bond markets during the week.
On the economic front, there were less data released during the week, and most were in line with expectation. The University of Michigan’s consumer sentiment data fell unexpectedly to its lowest level in six months.
The Treasury yields rose after Fed Chair Jerome Powell’s speech at a gathering of the IMF. Powell said policymakers were not sure if they had successfully achieved a stance of monetary policy that is sufficiently restrictive to bring inflation below 2% as per the set target
European Stock Market Indexes- Weekly Updates
European stock market indexes closed mixed this week, as the optimism about peaked interest rates faded away. The major European stock market indexes ended mixed, while the pan-European Stoxx 600 index closed marginally lower during the week.
At a central bank conference in Ireland, Bank of England Governor Andrew Balily said it was too early to talk about cutting interest rates. He replied to BoE Chief Economist Huw Pill when he said the initial rate cut could be seen in August next year.
Meanwhile, the UK’s GDP in the third quarter came at zero growth in line with BoE’s forecast. GDP was expanded by 0.2% in the previous quarter. The monthly GDP came better than expected, as the economy grew 0.2% in September.
The eurozone retail sales fell 0.3% in September after declining 0.7% in August. According to the Sentix Consultancy survey report, the economic sentiment index came in at -18.6 in November, an improvement from the previous month’s data of -21.9.
Germany’s Industrial Production fell 1.4% in September on a sequential basis, while manufacturing orders increased 0.2%, but below the 1.9% recorded in the previous month. Meanwhile, Industrial Output data in France and Italy came flat in September as compared to the previous month.
Asian Stock Markets Updates
The major Asian stock market indexes closed mostly higher this week. The market sentiments got boosted due to strong corporate earnings this week. Indian stock market indices closed higher for the second consecutive week. You can read about the Indian stock market updates here.
Japan Stock Market
Japan’s stock market index Nikkei gained during the week due to strong corporate earnings, hopes of additional economic stimulus, and ongoing positive currency dynamics. The Japanese government has approved an extra budget of more than 110 billion to support low earners to ease the impact of inflation, tax cuts, and other measures.
However, the market sentiments were hit and the upside remained capped towards the end of the week after US Fed Chair Jerome Powell’s speech at the IMF. Powell in his speech said that the U.S. central bank won’t hesitate to tighten monetary policy further if needed to set inflation below the 2% target.
Chinese Stock Market
Chinese stock market index Shanghai gained this week as investors shrugged off the weakness in the latest economic data released during the week.
The Consumer Price Index (CPI) contracted (-0.2) in October from the same period last year, after remaining unchanged in September. However, the Producer Price Index (PPI) dipped 2.6% a tick lower than the expectation of 2.7% in October.
The trade data released during the week showed exports declined in October compared to the last year’s same period while imports unexpectedly rose.
In Hong Kong, the Hang Seng Index closed lower during the week.
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Editor’s Desk