Global Stock Market Indexes-Weekly Updates
Global Stock Market Indexes-Weekly Updates: The major global stock market indexes closed higher during the week that ended on 27 January. The economic data and quarterly earnings were the main focus during the week.
The US Stock Market indexes- Weekly Updates
The US stock markets closed higher during the week in the hopes that inflation is moderating and Fed will be less aggressive in interest rate hikes in the upcoming policy meeting. The stocks gained as market participants were also hopeful that the US economy might avoid a recession in 2023.
The consumer discretionary stocks were strong whereas defensive consumer staples, healthcare, and utilities lagged during the week. Tesla made a big jump due to a favorable outlook from CEO Elon Musk during the week.
The better-than-expected fourth-quarter GDP growth data, January month’s flash manufacturing PMI data, and in line with the expectation of the Core Personal Consumption Expenditure (PCE) price index supported the markets to close higher during the week.
However, the upside remained capped as some corporate earnings disappointed during the week. The second-most heavily weighted stock in the index, Microsoft, fell sharply after the company posted a decline in earnings and a weak forecast for 2023, followed by IBM and Intel.
European Stock Market Indexes- Weekly Updates
European stock market indexes advanced during the week, as investors remain hopeful that encouraging economic data released during the week will slow down the pace of monetary policy tightening. The Eurozone business activity unexpectedly stabilized in January after contracting for six months according to flash data. This raised hopes that the region might avoid a recession and that the market sentiments improved.
The other economic data showed that Consumer confidence in the eurozone strengthen in January. Investor morale in Germany also picked up so far in 2023 due to easing inflation and an improved outlook, as per Ifo institute.
However, the upside remained capped as the UK’s business activity fell to its lowest level in two years, according to the survey conducted by S&P Global. The hawkish tone from the ECB president Lagarde, Knot, and fellow Governing Council member Ollie Rehan, saying the “significant “ rate increase in February and March as inflation is still high, also limited the markets on the higher side during the week.
Japan’s equity market – Weekly Updates
Japan’s stock market index rose during the week. The sentiment become positive after the US economy reported solid growth ahead of the market expectations for the fourth quarter of 2022. Japan’s private sectors returned to growth in January, as per the flash PMI data the services sectors expanded moderately in Japan while the manufacturing sectors lagged in January.
The upside was capped as investors were cautious and closely watching the Tokyo Core consumer price inflation data. The inflation rose in January and above the Bank of Japan’s (BoJ’s) inflation target for the eighth straight month adding pressure on the central bank to tighten its ultra-loose policy
Chinese Equity Markets- Weekly Updates
Chinese equity markets index Shanghai was closed for the week on account of the Lunar New Year celebration. The trading activity in Shanghai will start on 30 January Monday. However, Hong Kong’s trading activity resumed on Thursday and advanced during the week. Chinese people enjoyed the break from the pandemic restrictions and took 95.9 million trips approx through various modes in the first four days of the holiday, according to Ministry of Transport data. This will have a positive impact on the Chinese stock market after it resumes on Monday.
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