Stock Market Weekly Recap: Global Indexes End Mixed Amid Quarterly Earnings
Global Stock Market Weekly Recap (17- 21 April 2023): The global stock markets indexes closed mixed during the week that ended on 21 April. The markets were mainly focused on the quarterly earnings and economic data The key stock market indexes in India, the US, and China fell while Europe and Japan indexes ended higher during the week.
The US Stock Market – Weekly Recap
The US stock market volumes were thin in the early week, as investors awaited more quarterly earning news. The key stock market indexes Dow Jones, S&P 500, and Nasdaq closed lower during the week, snapping a four-week winning streak amid mixed corporate earnings and economic data.
Banking and Financial stocks outperformed during the week, despite a decline in shares of Goldman Sachs after the investment banking company missed the consensus revenue estimates. The share price of Tesla fell more than 10% after the company announced disappointing quarterly results.
Meanwhile, investors are now awaiting the quarterly results of big tech companies next week, Alphabet and Microsoft will kick off the earnings for big tech on Tuesday.
On the economic front, Thursday’s weekly jobless claims report showed weakness in the labor market. Investors feel this can be good news as this might encourage Federal Reserves to start cutting the rate hikes. Housing data released during the week was soft, and existing home sales fell.
On Friday, the S&P Global flash PMI data showed both services and manufacturing activity rose to their highest levels in almost a year due to stronger demand, improving supply chains, and strength in new orders.
European Stock Market – Weekly Recap
European stock market indexes gained during the as the optimism about the economic outlook offset the concerns about staying higher interest rates for a longer period. The pan-European Stoxx 600 gained 0.45 percent, while the key European benchmarks, DAX, CAC, and FTSE ended higher during the week.
The fresh PMI survey data showed that the eurozone economic activity picked up in April. The latest minutes of the ECB meeting showed, showed policymakers were split over the decision of raising a 50 bps rate hike. Though the majority voted in favor of the hike as inflation is on the higher side. While some members voted to pause until the banking crisis fully become normal.
UK’s inflation slowed less than expected in March, due to a surge in food and drink prices. UK’s PMI survey showed that business activity in the services sectors increased while manufacturing activity decreased in April.
Asian Stock Market- Weekly Recap.
The Indian equity benchmarks ended with modest losses during the week, snapping a three-week winning streak. Sensex and Nifty ended lower by 1.28% and 1.14% respectively during the week. The domestic market fell as IT stocks reacted negatively after the quarterly earnings, FIIs outflow, and weak global cues.
Among the sectors, PSU Bank, FMCG, and Pharma were the gainers while IT was the biggest loser during the week, falling more than 5% followed by Media, Metal, and Realty. FIIs were the net sellers, they offloaded shares worth Rs 4643.05 crore while DIIs bought Rs 3026.27 crore during the week that ended on 21 April.
Japanese stock market indexes ended marginally higher during the week as inflation remain steady in March, in line with market expectations. Though inflation is above the Bank of Japan’s (BoJs) target, the first monetary policy meeting under Governor Ueda is expected to maintain the BoJ’s commitment to its easing stance. The PMI survey data showed manufacturing activity lagged while services activity continued to expand in April.
Chinese equity markets ended lower during the week on the news that the U.S. may introduce fresh investment curbs against China. The sentiments were also hit, as the People’s Bank of China (PBOC) injected a lower-than-expected RMB 170 billion into the banking system via its one-year medium-term lending facility.
On the economic front, China’s GDP expanded better than expected in the first three months of 2023. Chinese new property prices increased third consecutive months
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