Wall Street to Shanghai: Global Stock Market Weekly Digest (March 25-29)

 

Global Stock Market Weekly Analysis (25 – 29 March 2024)

 

The major global stock market indexes ended mixed for the week ending on March 28. The key indexes in the US closed mixed. The Europen stock market indexes ended the week on a high note, while Asian markets mostly closed in the red during the holiday-shortened week. 

 

The US Stock Markets – Weekly Updates

 

The Dow Jones closed positively while the S&P 500 index ended at a record high during the truncated week. The Nasdaq composite index closed in the red. Meanwhile, the smallcap index outperformed the large-cap over the week.

The news flow was somewhat limited and the market activity was slightly subdued ahead of the holiday-shortened week. On Tuesday, the week’s economic data showed that durable goods orders rose more than expected in February, while consumer confidence data fell to its lowest levels since November.

On Wednesday, the post-market remarks from Federal Reserve Governor Christopher Waller said there is no rush in cutting rates amid sticky inflation. slightly damped the investor’s mood on Thursday, despite the better-than-expected economic data.

The 10-year Treasury yields saw a slight increase during the week, rising from 4.202 to 4.205%. The probability of cutting interest rates in June also reduced lightly during the week from 75% to 63%, according to the CME FedWatch tool.

On Thursday, the University of Michigan consumer sentiments were revised upward to 21 months high. Meanwhile, the fourth-quarter US GDP growth also revised higher from the previously reported rate.

 

European Stock Market Indexes- Weekly Updates

 

European stock market indexes closed higher ahead of the Easter holiday weekend. The pan-European Stoxx 600 index hit a record high and closed higher during the week. European markets closed higher despite some major economic slowdown due to possible rate cuts in June. The Eurozone data shows bank lending stagnated in February

On Thursday, the latest economic data released in the UK showed that the country had entered into a technical recession for the first time since early 2020. Germany’s retail sales declined below expectations in February. Meanwhile, a leading economic institute in Germany has cut its earlier estimates of GDP growth due to high interest rates, weak global demand, and political uncertainty.

Some better economic news also improved the market sentiments, as retail sales rose in Spain in February, reversing two-month declines, while the industrial producer prices declined in February. On Thursday, the latest data showed by the European Commission that the gauge of consumer confidence had increased to its highest level in over two years.

 

Asian Stock Markets Updates

 

Asian stock markets mostly closed lower for the week ending March 28. The stock market indexes of India and Hong Kong ended higher, while the indexes in Japan, South Korea, and China ended in the red. The depreciation of the yen against the dollar, concern about Chinese property markets, and drag in tech stocks weigh on market sentiments during the week.

 

Japan Stock Market

 

Japan’s Nikkei 225 closed lower due to profit booking at record high levels, as the yen fell to a 34-year low against the US dollar last week. However, the market downside was capped as the historic weakness in the yen benefited many of Japan’s heavyweight exports, as they gained significantly of their earnings from overseas.

The sentiments were downbeat as market participants are expecting two more rate hikes this year, after the recent policy shift done by the Bank of Japan.

 

China Stock Market

 

China’s Shanghai index closed lower during the week as investors remained concerned about the ailing property sectors and demotivated investor confidence.

China’s Industrial profits grew in the first two months of 2024, compared to the previous year. Last week’s better-than-expected industrial production, retail sales data, and the latest economic indicators showed the evidence that Chinese economy was gaining traction. However, deflationary pressure and the property crisis weighed on the market sentiments and capped the market upside.

The Hang Seng index was closed slightly higher during the week in Hong Kong. 

 

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