Global Stock Market Insights: Weekly Stock Market Overview (Mar 18-22)
Global Stock Market Weekly Analysis (18 – 22 March 2024)
The major global stock market indexes mostly closed higher for the week ending on March 22. The US, Europe, Australia, Japan, India, and South Korea stock market indexes ended higher, while China and Hong Kong ended in the red this week. The central bank’s interest rate decision was the major focus during the week.
The US Stock Markets – Weekly Updates
The US stock markets bounced back during the week after closing lower the previous week. Stocks moved higher for the week and pushed, the S&P 500 and Nasdaq Composite indexes to fresh record highs. The sentiments were positive as investors cheered after the Federal Reserve signaled three rate cuts this year despite the recent hotter-than-expected inflation readings.
The Fed’s dovish comments in the post-monetary policy pushed the Treasury yields lower and increased the hope of a June rate cut. The yield of the 10-year Treasury note slipped from 4.318% to 4.202% for the week ending March 22. According to the CME FedWatch tool, the possibility of a June rate cut increased from 65 last week to 75.
The communications stocks along with tech gained during the week, while healthcare and real estate declined. On the corporate front, the news that Apple might partner with Google parent Alphabet and integrate the AI tools in Apple lifted the tech shares. Meanwhile, Nvidia hit a record high on Friday lifting the company’s market capitalization near USD 2.4 trillion, after detailing plans to ship its new AI chips later in 2024.
The week’s other economic data also supported hopes that the US economy was continuing to expand despite sticky inflation pressures. The existing home sales surprised the markets by jumping 9.5% in February. The business activity data also showed stability in March.
European Stock Market Indexes- Weekly Updates
European stock market indexes mostly closed higher during the week ending March 22. The pan-European Stoxx 600 index closed near a fresh record high as dovish signals from central banks boosted investor’s risk appetite. The key stock market indexes, Germany’s DAX, Italy’s FTSE MIB, and the UK’s FTSE 100 all closed higher, while France’s CAC ended slightly lower during the week.
The Bank of England (BoE) kept the interest rate unchanged as widely expected for the fifth consecutive time and signaled rate cuts soon. The BoE’s policy outcome came a day after the country’s inflation reading decelerated in February, the lowest in more than two years. The UK’s flash manufacturing PMI data for March showed some improvement, compared to the prior month but remained in contraction. Eurozone, business activity data showed stabilizing in March.
The Swiss National Bank (SNB) surprised the investors, unexpectedly cutting the interest rate by 0.25 bps to 1.5%- the first cut in nine years. Meanwhile, the Norway Central Bank kept the interest rate unchanged in its monetary policy.
Asian Stock Markets Updates
Asian stock markets mostly closed higher for the week ending March 22. The stock market indexes of India, Japan, and South Korea closed higher while China and Hong Kong ended in the red. The Bank of Japan’s interest rate decision and economic data from China were focused during the week.
Japan Stock Market
Japan’s Nikkei 225 closed on a strong note, during the truncated week due to weakness in the yen after the Bank of Japan’s policy shift. The Bank of Japan in its monetary policy exited its negative interest rate policy and up the rate at 0 from -.1% The US Fed’s dovish comments on three interest rate cuts this year also supported the market sentiments.
On the economic front, the CPI inflation reading increased higher than expected in February, compared to the prior month. Meanwhile, the flash PMI data showed that business activity in the private sector expanded in March, at the fastest rate in seven months, due to strength in the services segment.
China Stock Market
China’s stock market index, Shanghai closed lower this week as the concerns about the property sectors offset optimism about the better-than-expected industrial production data released during the week.
Property investment in China declined in the first two months of 2024, compared to the previous year, while the property sales by floor area also sank, but slowed from a significant drop in December. Meanwhile, Industrial production picked up, Fixed Asset investment grew, and retail sales rose more than expected in January and February of 2024.
In Hong Kong, the Hang Seng index was closed lower during the week.
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