Global Stock Market Indexes-Weekly Updates (24-28 Oct)
Global Stock Market Indexes-Weekly Updates (24-28 Oct): The key global stock market indexes closed mostly higher during the week ending 28 October. The equity benchmarks in the US, European, and Japanese stock markets were advanced while the Chinese stock markets index ended in the red on a weekly basis
Global Stock Market Indexes-Weekly Updates (24-28 Oct)
The US Stock Market indexes- Weekly Updates
The US stock market indexes gained on the hopes that Federal Reserve might slow down the interest rate increases in its next meeting. The Energy and other industrial economy stocks outperformed during the week while the mega-cap technology and internet-related stocks including Alphabet, Microsoft, Amazon, and Meta fell sharply, as they missed third-quarter earning estimates and lowered outlooks. However, IT stocks bounced back on the final day of the week after Apple beats streets estimates.
The market sentiments got boosted after the Bank of Canada unexpectedly raised interest rates by only 50 basis points instead of the 75 basis points as widely anticipated. This led to the hopes that Fed might follow the same. The weekly economic data showed a conflict signal about the pace of interest rate hikes. The S&P Global flash manufacturing and services activity indicates a slowdown, Consumer Confidence fell for the first time in three months, persistent inflation is on the higher side and the downside of weekly jobless claims is conflicting.
The first estimate of US GDP growth in the third quarter showed the economy is expanding at an annual rate of 2.6%. It was much above the expectation of 2.4% and the first positive reading after the contraction of two consecutive quarters in 2022. The benchmark 10-year US Treasury note yield hit below 4% before rising slightly higher on Friday.
European Stock Market Indexes- Weekly Updates
European stock market indexes ended sharply higher during the week on hopes that central banks might slow the pace of interest rate increases, as recession looms. The Central bank has raised its key interest rates by 75 basis points for the second consecutive time. The government bond yields softened across the board.
The business activity in the eurozone contracted for a fourth running month in October, while the UK contracted for the third month, as per the S&P Global flash PMI data. This indicates that the economy is likely to enter a recession. Early estimates showed that Germany’s economy expanded unexpectedly in the third quarter while growth slowed down in France and Spain.
Japan’s Stock Market Index- Weekly Updates
Japanese equity market index closed higher for the week, amid hopes that the US central bank may slow down its pace of interest rate hikes. However, the upside remained capped in the late week, as investors digested domestic earnings reports and the announcement by the Prime Minister of a JPY 71.6 trillion government economic stimulus package to tackle inflation in the country
The Japanese Yen recovered some ground during the week, while an increase in bond purchases hits the yield. The latest data showed that the manufacturing activity expanded in October. The Bank of Japan (BoJ) announced to hold its interest rate as widely anticipated in its monetary policy meeting during the week.
China’s Stock Market Index- Weekly Updates
China’s stock market indexes ended lower for the week, as the sentiments were hit by a new Covid-related lockdown in several cities to curb inflation after the country reported 1000 new cases nationwide. The economic data showed that China’s industrial firm’s profits declined at a faster rate in September.
Growth worries hit the market sentiments despite better-than-expected GDP data reported for the third quarter. The retail sales grew in September but missed the forecast while Exports beat the estimates in September
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