Global Stock Markets Soar: Top Factors Driving This Week’s Rally
The global stock markets indexes closed higher during the week that ended on 14 April. The major indexes in Europe, the US, Japan, and China made decent gains due to cooling inflation and positive economic data released during the week.
Global Stock Markets Weekly Updates (10-14 April 2023)
The US Stock Markets – Weekly Updates
The US stock market indexes ended the week higher as investors weighed slowing economic growth signals against more cooling inflationary pressure. The market volume was thin in the early week ahead of economic data and FOMC meeting minutes. The materials and industrial shares outperformed in S&P 500 while technology shares fell during the week.
The US markets were volatile on Wednesday, initially, markets jumped on the news that CPI rose just 0.1%. The March retail inflation was below expectation but later FOMC meeting minutes showed mild recession by the year-end paring all gains. On Thursday, again the producer price index data showed a decline and this cheered the markets.
On Friday, the US stock markets fell as the share price of Boeing and United Health declined sharply. The much-awaited big banks reported strong quarterly earnings but were overshadowed by hawkish remarks from Fed officials, suggesting further interest rate hikes to control inflation.
European Stock Markets- Weekly Updates
European stock markets gained as recession fear eased. The major European stock market indexes ended higher during the truncated week The market sentiments were positive as Eurozone Industrial production rose stronger than expected and the Sentix index of investor morale rose and showed an upward trend in March. However, March retail sales volume fell but were in line with expectation.
The UK economy may avoid recession in the first quarter as forecasted earlier by the Bank of England (BoE). The official data showed the UK GDP remained flat in February, but a revision to January’s data indicated the economy expanded by 0.4%. Meanwhile, International Monetary Fund (IMF) last week predicted that UK’s economy would shrink by 0.3% in 2023, which is less than its last projections.
Asian Stock Markets Updates.
The Indian stock market indexes gained for the third consecutive week, which ended on 13 April. The NSE and BSE were closed on 14 April on account of Dr. BR Ambedkar Jayanti. The markets gained all four trading sessions during the week due to positive global cues, ease in inflation data, and FIIs buying. However, the upside remained capped due to lackluster performance by IT stocks after TCS’s quarterly earnings and rising oil prices.
Japanese markets gained during the week, as sentiments got boosted after well-known investor Warren Buffett said his company would increase investments in Japan. The Dovish comments from the new Bank of Japan (BoJ) Governor Kazuo Ueda also supported the market sentiments for the week. The upside remained capped as the IMF revised downward its projection for Japan’s 2023 economic growth to 1.3% from 1.8% in January.
China’s Shanghai index closed higher during the week. The markets were volatile during the week. The softer-than-expected retail inflation data suggested disinflation in the economy and this dampened the investor’s sentiments. However, the stronger trade data showed exports rose unexpectedly in March while imports fell, which cheered the investor’s mood. In Hong Kong, the equity benchmark Hang Seng made decent gains during the week.
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