Global Stock Market Performance & Analysis: Weekly Overview (11 – 15 March)
Global Stock Market Weekly Analysis (11 – 15 March 2024)
The global stock market indexes closed mixed for the week ending on March 15. The US, Japan, and Indian stock markets closed in the red, while Europe, China, and Hong Kong gained during the week. The global markets were mainly focused on macroeconomic data during the week.
The US Stock Markets – Weekly Updates
The US stock market indexes ended in the red over the week ending March 15. The market sentiments were hit due to an unexpected rise in inflation data and signs of moderating consumer spending. The Dow Jones Industrial Average (DJIA) closed edged lower during the week, as energy stocks rallied the most on the jump in oil prices. Meanwhile, the Nasdaq fell the most due to a fall in technology shares.
On Tuesday, the Labor Department showed that consumer price index (CPI) inflation rose 0.4% in February, which was in line with the expectation. At the same time, the core inflation came slightly higher than the economist’s expectations. Traders shrugged off the concern of slightly higher core inflation data, as investors’ hope remains intact that the Fed will start cutting interest rates in June.
The Dow Jones closed higher on Wednesday, as energy stocks rose after crude oil prices rallied due to an unexpected fall in US crude inventories. While technology shares corrected ahead of more inflation data. Thursday’s upside producer price index (PPI) inflation data surprised investors. The data showed PPI rose double in February and was well above economist’s expectations.
However, the downside was limited as retail sales data showed that consumer spending slowed in February and surpassed market expectations. The Treasury yields rose during the week, as the 10-year Treasury note climbed to 4.318% from 4.080% closed in the previous week.
European Stock Market Indexes- Weekly Updates
European stock markets closed higher during the week ending March 15. The pan-European Stoxx 600 index gained for the eighth consecutive week. The key indexes, Germany’s DAX, France’s CAC, the UK’s FTSE 100, and Italy’s FTSE MIB all closed higher due to strong corporate earnings and the hope that the European Central Bank would soon start cutting interest rates.
The unemployment rate in the UK unexpectedly rose in the three months through January, while wage growth excluding bonuses is at the lowest level in the last two years. The UK’s economy rebounded slightly in January, recovering from the recession as the GDP increased 0.2% sequentially in January, due to the expansion of retailing and wholesaling.
Meanwhile, the sentiments were boosted as European Central Bank (ECB) officials suggested that the rate cut is coming soon, as the inflation rate has declined. Several ECB officials and policymakers have already signaled that a rate cut is needed in June and its subsequent meetings in the current year.
Asian Stock Markets Updates
The Asian markets closed mixed during the week that ended on March 15th. In Asia, the stock market indexes of China and Hong Kong closed higher while Japan, India, and Kospi ended in the red.
Japan Stock Market
Japanese stock market index Nikkei 225 closed negative during the week, as investors remain cautious ahead of the Bank of Japan (BoJ) monetary policy early next week. The market sentiments were dented by the speculation that BoJ is ending its negative interest rate in the upcoming policy meeting. Friday’s announcement of the biggest hikes in the wage negotiation in three decades also confirms the end of Japan’s ultra-lose policy.
However, the market downside was limited, as the revised report showed that Japan had avoided the technical recession. The early weeks’ data showed that Japan’s GDP reading in the fourth quarter of 2023 expanded 0.1% in the quarter, compared with earlier release data that suggested the economy had contracted 0.1%.
China Stock Market
China’s Shanghai index gained this week as the government’s recent stimulus measures boosted investor’s confidence despite a weak economic outlook. China’s CPI inflation rose above economist’s expectations in February, suggesting an increase in demand. This is the country’s first positive CPI reading since August 2023 as consumption surged after the weeklong Lunar New Year holidays. The producer price index (PPI) inflation fell bigger than expected in February.
Meanwhile, there is no sign of improvement in China’s property crisis, as new home prices fell 0.3% in February for the eighth consecutive month. The National People’s Congress weeklong meeting ended last Monday, unveiled that the State Council had pledged to increase spending by at least 25% by 2027 from the previous year to encourage consumer business and to replace old equipment and goods
In Hong Kong, the Hang Seng indexes were closed higher during the week.
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