Global Stock Market: Weekly Overview of Key Trends and Market Performances

January 27, 2024 admin

Global Stock Market Weekly Analysis (22 -26 Jan 2024)

Global stock market indexes mostly closed higher during the week that ended 26 January. The stock market indexes of the US and Europe were advanced, while Asian stock markets closed mixed. In Asia, India, and Japan closed lower, while China and Hong Kong gained during the week.

The US Stock Markets – Weekly Updates

US stock markets ended the week with moderate gains, as the Dow and S&P 500 touched new all-time highs. Investor’s focus mainly remained on the earnings front and a few crucial economic data. Tesla and Intel fell sharply after the fourth-quarter earnings disappointed investors, while Netflix made solid gains due to the addition of record-high subscribers.

Initially, the week has limited economic data but later some crucial data surprises the investors for the week. The latest data showed manufacturing activity in the Mid-Atlantic region came in weaker than expected on Tuesday.

However, the S&P Global flash manufacturing index showed expansion for the first time since April 2023 and touched its highest level since October 2022. Meanwhile, the Services index reported above expectations, hitting its best level since June.

On Thursday, the Commerce Department released the first print of GDP growth data, which came higher than expected. The Fed’s preferred gauge of inflation, the core personal consumption expenditure (PCE) price index for December came in line with expectations, while on an annual basis, the PCE came a tick lower. While, personal spending rose 0.7% in December, beating expectations

The upside surprise in weekly jobless claims, released on Thursday, offset the strong economic indicators and kept some pressure on the benchmark 10-year U.S. Treasury note yield for the week. The 10-year Treasury yields closed at 4.143% on Friday, slightly higher from the previous week’s close at 4.131%

European Stock Market Indexes- Weekly Updates

European stock markets advanced during the week, that ended on 26 January. The pan-European Stoxx index ended with significant gains on encouraging quarterly earnings, and China’s additional stimulus package. The market sentiments were also upbeat after the European Central Bank (ECB) left the interest rate unchanged and signaled for dovish outlook.

The key European stock market indexes, CAC, DAX, FTSE100, and FTSEMIB all closed in the green territory during the week.

The economic data released during the week showed that Eurozone business activity is still in contraction for the eighth straight month but at a slower rate. Meanwhile, the UK business activity rose more than expected in January according to the flash S&P Global/CIPS data.

Asian Stock Markets Updates

The Asian stock market indexes closed mixed during the week. Indian stock markets ended in the red during the week. The stock market indices of China, Hong Kong, and Australia were advanced, while South Korea, Japan, and India ended in the red this week.

Global Stock Market Weekly Analysis- Japan

Japan’s stock markets declined during the week due to profit booking at a higher level. Meanwhile, the Bank of Japan (BoJ) continued its ultra-accommodative stance, with Governor Kazuo Ueda emphasizing the central bank’s advancements in achieving sustained inflation. This raised expectations that a potential shift in monetary policy could be coming soon. The expectation was later moderated after softer-than-expected Tokyo inflation data was released.

With the recent decline steadiness in crude oil prices, the central bank has revised its outlook for consumer inflation, forecasting that the core consumer price index (CPI) will rise 2.4% year over year (y/y) in fiscal 2024, down from the earlier estimates of 2.8% y/y in October 2023.

Global Stock Market Weekly Analysis- China & Hong Kong

China’s stock market indexes closed higher after Bejing announced stimulus measures to support the economy. The market sentiments improved after the People’s Bank of China (PBOC) announced to cut its reserve ratio requirement by 50 bps for most banks on February 5.

Earlier, during the week, Chinese banks left their one and five-year loan prime rates unchanged as widely expected after the PBOC kept its medium-term lending rate steady in the previous week. The sentiments were also boosted after Chinese regulators removed the draft rules imposed on online video games in late December to curb spending and rewards.

In Hong Kong, the Hang Seng Index closed sharply higher during the week following the gains in the global markets.

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