Global Stock Market – Weekly News and Analysis Report

 

Global Stock Market-Weekly Updates ( 29 May- 2 June 2023): The global stock market indexes mostly closed higher during the week that ended on 2 June. On a weekly basis, US markets closed higher, Europe closed mixed while in Asia, China, Japan, and  Hang Seng closed in the green. The global stock markets focused mainly on the US debt ceiling and economic data during the week.

 

The US Stock Markets – Weekly Updates

 

The US stock markets made solid gains during the truncated week. Markets were closed on Monday 29 May, due to Memorial Day. Nasdaq gained consecutively for the sixth week, while S&P 500 hit its highest intraday levels since August 2022 during the week. The rally was broad-based, as strong gains were witnessed in both value and growth stocks, as well as smallcap stocks.

The US debt ceiling was in focus during the week. The House of Representatives passed the bill on Wednesday, but surprisingly it had little impact on the markets. It could be investors got enough signals earlier that deal is at close and will be done well in time. Instead, Investors focus shifted to the economic data. On Wednesday, investors were concerned about another rate hike after the data showed job openings rebounded more than expected in April

On Thursday, ISM manufacturing PMI data showed a contraction for the seventh straight month, as expected. The US stock markets rallied on Friday, after the monthly job report which showed that the U.S. economy created 339,000 new jobs in May, which is above the expectation of 180,000, but the unemployment rate rose more than expected, and the wage growth also slowed.

 

European Stock Market Indexes- Weekly Updates

 

The European stock market indexes closed mixed during the week, mostly recovering their early-week losses after the data showed that eurozone inflation slowed and the progress of the US debt ceiling deal. The Europen stock market indexes FTSE and CAC closed lower, while DAX ended higher during the week.

Eurozone headline inflation slowed to an annual of 6.1% in May from 7.0% in April below the expectation of 6.3%. The core inflation rate -excluding food and fuel prices also showed improvement and came below expectations. The European Central Bank (ECB) policymaker warns that the inflation rate is still too high and is set to remain so for too long, and indicated further monetary policy tightening. 

The market upside was limited, as the latest survey showed that Eurozone economic sentiment weakened more than expected, and fell to its lowest level since November 2022. Business confidence in the UK also dips in May after three months of rising, as the latest data showed.

 

Asian Stock Markets Updates

 

Asian stock market indexes closed mostly higher during the week. Friday’s rally supported most of the Asian key indexes to erase early-week losses. The Indian stock market indexes closed slightly higher during the week You can read the about Indian stock market weekly updates here

 

Japan Stock Market

 

Japan’s Nikkei gained during the week and reached fresh 33-year highs. The sentiments were upbeat due to strong earnings and weakness in the yen. The sentiment was aided by optimism about the US debt ceiling deal and the avoidance of US default.

The market sentiments remain upbeat as the preliminary data released by Japan Tourism Agency showed that the country’s hotels and accommodation facilities made a record high in overnight stays by the foreigners in last 3 years. The tourism industry is rebounding in Japan, mainly after lifting the border restrictions in April.

 

Chinese Stock Market

 

Chinese equity market index Shanghai gained during the week, as investor’s risk appetite revived after the progress of the US debt ceiling deal. The market sentiments were downbeat in the early week as China’s official manufacturing PMI data fell below 50-mark for the second consecutive month in May. 

The downside was limited and markets recovered after a separate private survey done by Caixin/S&P Global showed that the manufacturing activity unexpectedly rose in May from April due to new orders received. The new home sales by China’s top developers rose 6.7% in May compared to the same period last year but down from gains of more than 29% in the previous two months.

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Hong Kong benchmark, the Hang Seng index closed higher during the week after hitting a six-month low in the early- week. 

 

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