Global Stock Market – Weekly News and Analysis
Global Stock Markets-Weekly Updates (8-12 May 2023)
The global stock market indexes were closed mixed during the week that ended on 12 May. The US inflation data, banking turmoil, BoE interest rate decision, and China’s CPI inflation remains focused during the week. Traders were busy accessing quarterly earnings, and economic data during the week.
The US Stock Markets – Weekly Updates
The US stock market indexes closed mixed for the week. Dow Jones and S&P 500 ended negative for the second straight week while Nasdaq closed higher. The tech-heavy Nasdaq outperformed the other benchmarks due to a rally in big tech shares after Alphabet (Google) announced to integration of Artificial intelligence with its products.
Dow ended lower during the week, as financial stock underperformed due to the ongoing turmoil in regional banks. The sentiments were also hit after Disney’s stock plunged after it reports a decline in subscribers to its streaming platform.
However, the downside of the market was limited after the data showed that the US CPI inflation rose 4.9% in April cooler than the expectation and slowest pace in two years.
On Friday, the latest survey showed consumer sentiments fell by more than expected in April, the lowest reading in the last 6 months, and long-term consumer inflation rising to a 12-year high weighed on market sentiment.
On the political front, a debt ceiling extension is possible as Congressional and White House staff plan to continue talks over the weekend to avert a U.S. default.
European Stock Market Indexes- Weekly Updates
The pan-European Stoxx 600 index closed flat during the week, while key European stock market indexes ended in the red. The market sentiments were hit after the European Central Bank( ECB) president Christine Lagard hints further interest rate hikes to fight higher inflation, in an interview.
German’s manufacturing orders shrank more than expected in March, heading for a possible recession in the economy. Bank of England (BoE) hikes interest rates as widely expected to its highest level since 2008.
BoE has revised the inflation projections to 5.1% by year-end from 3.9% and projected zero growth in the second quarter, as opposed to a 0.7% contraction.
The latest official data showed the UK economy grew 0.1% in the first quarter of 2023, but surprisingly the GDP growth in March fell 0.3% sequentially amid contraction in the services sector.
Asian Stock Markets Updates.
Indian Stock Market
Indian stock market indexes closed higher during the week that ended on 12 May. The Indian markets gained due to healthy quarterly earnings and FIIs inflow, however, the upside was limited due to weak global cues. On a weekly basis, Sensex logged gains of 1.59%, whereas Nifty advanced 1.36%.
Among the sectors, Nifty Auto, Bank, and Realty were in demand while selling pressure was witnessed in PSU Bank, Metals, and Pharma sectors. Foreign Institutional Investors bought shares worth Rs 7750.35 crore while Domestic Institutional investors offloaded Rs 1261.98 crore.
Japan Stock Market
Japan’s Nikkei closed higher for the week as corporate earnings supported markets. However, some concerns about the slowdown in China as well as the US banking turmoil, debt ceiling, and potential default, dented sentiment. The economic data released during the week showed that wage growth remained sluggish in March, supporting the BoJ’s dovish policy stance.
Chinese Stock Market
The Shanghai index closed lower during the week due to concern about a slowdown in the economy. The CPI inflation data released in the early week rose to 0.1% in April, down from the 0.7% rise in March. The CPI inflation was reported at its lowest since February 2021 and missed economic expectations. After the inflation data, Investors are now worried that China may have entered a deflationary period.
In Hong Kong, the benchmark Hang Seng index also closed lower during the week
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