Global Stock Market Indexes-Weekly Updates

 

Global Stock Market Indexes-Weekly Updates (9-13 Jan 2023): The major global stock market indexes continued their winning streak for the second consecutive week of 2023. The better-than-expected economic data and quarterly earnings supported most of the global markets during the week.

 

The US Stock Market indexes- Weekly Updates

 

The US stock market indexes gained for the second consecutive week due to cooling retail inflation and strong quarterly earnings presented by the Banks on Friday, which beat the consensus expectation. Technology and growth-oriented sectors outperformed during the week.

Earlier, investors were cautious and markets were volatile ahead of the December retail inflation data, which was released on Thursday. The CPI inflation reading showed a drop in inflationary pressure to its lowest level since October 2021. The weekly jobless claim fell to three months low. The economic data released during the week showed that the economy was relatively healthy even after inflation eased.

The economic data released last week raised hope that Federal Reserve could further slow down its interest rate hike in its February policy. The cooling inflation data also helped the U.S. Treasury yields and dollar index to continue tending lower and this supported the U.S. stock markets in the last two days of the week.

 

European Stock Market Indexes- Weekly Updates

 

European stock market indexes rallied for a second straight week due to better-than-expected economic data, which raise hopes of a short and depthless recession. The European stock markets remain volatile as some central bank officials said that interest rates would need to rise further to curb inflation as per the set target.

The economic data released during the week showed that the German economy was likely stagnated in the fourth quarter after growing in the previous quarter. However, the market sentiments improved as Eurozone unemployment data remained as per expectation in November and the economic sentiment index rose to its highest level since June last year. The unexpected UK GDP growth beating the consensus forecast eased some recession fears among investors.

 

Japan’s equity market – Weekly Updates

 

Japan’s equity market indexes closed with modest gains during the week. Investors’ risk appetite increased after the cooling U.S. CPI inflation reading, which raised hopes that the Fed would slow the pace of interest rate hikes in its upcoming policy. 

The core consumer price inflation in Tokyo accelerated at the fastest rate in 40 years. This has speculated that the Bank of Japan could revise its inflation forecasts and could do some monetary policy adjustments like last month’s surprisingly tweaked yield curve control (YCC) framework. The cautiousness ahead of next week’s BoJ policy meeting and heavyweight Fast Retailing’s weak earnings estimates dragged the markets on the last day of the week.

 

Chinese Equity Markets- Weekly Updates

 

Chinese stock market gained during the week due to optimism about post-covid reopening and the decline in U.S. inflationary pressure in December. Domestic demands are expected to recover in the coming months as China abandoned its strict zero-covid policy in December. The government also announced its various support measures to boot its ailing property sector.

On the economic front, China’s export fell in December due to a rise in Covid infection. China’s trade surplus reached an all-time high due to strong export growth in 2022. The inflation increased whereas the producer price declined in December.

 

If you like the post “Global Stock Market Indexes-Weekly Updates“ please share it with others.

 

You may also like to read, Indian Stock Market Weekly Update (9- 13 Jan 2023)

                                          Best Options Trading Books in India-Must Read 2022     

 

Happy Investing!!

Editor’s Desk