Global

Following an initial knee-jerk reaction in the market due to rising recessionary fears in the world’s largest economy, the market gained some ground the following week. 

Both the US and European stock markets are trading with a positive bias, fueled by rising hopes of a Fed rate cut and tech stock gains. 

On Monday, the Eurozone released its trade statistics. The trade surplus decreased slightly from €21.7 billion in June to €21.2 billion in July. Compared to July 2023, exports increased 10.2% yearly, while imports increased 4.0%. While the trade surplus fell slightly in July, it was significantly higher than in July 2023, indicating a stronger demand environment.

The European Central Bank moved ahead with a second rate cut for 2024, slashing borrowing rates by 25 bps to 3.65%. The move comes amid rising inflation and slower growth projections. 

In the US, retail sales data released on Tuesday showed that inched higher by 0.1% in August, against the expectation of a 0.2% decrease. This is likely to give the market much-needed ammunition to keep its momentum strong. 

Top Gainers and Losers in the European Stock Market

Top Gainers

The following are the top gainers in the last one week. 

Stocks	Last 7 Days Gains (in %)
DSV	14.11
Hennes & Mauritz	11.96
Industria De Diseno Textil	9.36
ASML	6.23
Schneider Electric	5.04

Top Losers

The following are the top losers in the last one week across various sectors:

Stocks	Last 7 Days Loss (in %)
Rentokil Initial	19.11
BMW	5.57
Genmab	4.29
Loreal	3.64
GSK	3.29

In the last week, Producer Manufacturing, Electronic Technology, Technology Services, Transportation, Communications, Retail Trade, and Non-Energy stocks supported the market higher, while consumer non-durables and health Technology pulled the index lower.

Let us also see how the indices fared during the week

STOXX Europe 600

As global markets remain upbeat, Europe’s largest stock market index, STOXX Europe 600 index, continued to move higher to record its highest closing level in two weeks. In the last 5 trading days, the index has moved higher by 1.75%. 

The index is gaining momentum and has broken above the 20-day EMA slope, implying that the short-term trend remains positive. Currently, the index is facing strong resistance at around 520, and failure to break above this level could result in a sell-off or the index trading range-bound. If it breaks above 520, the next major resistance level is 525. 

FTSE 100

Economic headwinds in terms of stagnating growth due to contraction in manufacturing activity leading to mixed sentiments among investors. 

Following the global cues, the UK’s primary stock exchange, FTSE 100, traded with a positive bias, and in the last five trading sessions, the index has inched higher by 1.27%. 

On the daily chart, we can see that the index is trading between 8,300 and 8,200. The index is likely to look for a strong or clear trigger to gain momentum and break higher. If the index moves past the 8,360 level with strong momentum, it may approach the 8,500 level. However, momentum is the key, as weak momentum can lead to a sell-off in the market and a break-up below the 8,140 level. 

CAC 40

The overall momentum in the index has shifted bearish as traders become more cautious about the French economy following the Olympics, most likely due to political uncertainty, flat earnings, and luxury sector concerns.

The CAC 40 has gained slowly compared to its European counterpart, rising 0.92% in the last five trading sessions. 

Looking at the daily chart, the level around 7,500 has become extremely resistive, and the index lacks the momentum to break above it. If it fails to move above the 7,500 level, we might see the index testing the levels around 7,300 for support. 

DAX

Overall, sentiment in the German economy remains strong. Stocks rose after the close on Tuesday, driven by gains in the retail, technology, and chemical sectors.

Also, better than expected retail sales data in the US will likely push the index higher. Following the global cues, the German index DAX has been up 2.09% in the last five trading days. 

The overall momentum of the market is strong, and it has broken above the 20-day EMA slope with strength. If the index continues to move higher and break above the much resistive 18,750 level, we may see it go past the 19,000 level. 

 Conversely, the index has strong support around the 18,500 level. 

Conclusion 

As we move forward, European stocks are likely to follow global cues. Closely tracking the US central bank’s rate cuts and its commentary on future rate cuts will help you determine the market’s near-term momentum. Keeping a close eye on all market developments is critical for making sound investment decisions in these rapidly changing market conditions. 

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

Fewer job openings and concerns of an economic slowdown battered the US stock market last week, resulting in the S&P 500’s worst weekly drop in 18 months. The Fed’s lack of clear timelines regarding rate cuts also affected investors’ sentiment. 

The oil market is currently experiencing a strong sell-off. Brent Crude is trading below $70, nearing a three-year low due to weak oil demand. However, there were a few gainers and losers in the market.

Top Gainers and Losers in the US Stock Market

Top Gainers

The following are the top gainers in the last one week. 

Stocks	Last 7 Days Gains (in %)
Oracle	10.99
American Tower Corporation	8.97
Tesla	5.07
Verizon Corporation	4.03
Mondelez International	4.44

Top Losers

The following are the top losers in the last one week across various sectors

Stocks	Last 7 Days Loss (in %)
ASML	15.82
KLA Corporation	11.44
Google	8.08
Conocophillips	7.06
Nvidia	6.06

In the last week, weakness in the market was led by Electronic Technology, Technology Services, Producer Manufacturing, Energy Minerals, and Consumer Services. While Retail Trade, Consumer non-durables, Commercial Services, Utilities, and Health Technology. 

Due to falling crude oil prices, the S & P 500 Energy Index has dropped 4.57% in the last five trading sessions. 

Let’s check out how the major US stock market indexes stand out during the week. 

Nasdaq 100

After last week’s sell-off, Nasdaq gained ground as the rebound continued. Broadcom, the key hardware supplier for iPhone 16, has gained upside momentum and is up by more than 5% in the last 24 hours. 

Nvidia, a semiconductor chip manufacturer, is trading with a positive bias this week after falling nearly 14% the previous week. 

On Tuesday (September 10, 2024), the Nasdaq 100 continued to trade with a positive bias and slowly gained momentum. At the end of the day, it gained nearly 1%. 

S&P 500

S&P 500 stocks gained ground as traders and investors reacted to a strong sell-off in the oil markets. Lower energy prices may provide additional support to many struggling industries and boost the labor market. 

On Tuesday (September 10, 2024), the S&P 500 gained 0.45%, trying to go past the psychologically important 5,500 level. If the index manages to break above the 20 EMA slope, we may see additional buying in the market, which can propel the index toward its all-time high.

Conclusion

In the short term, markets will likely remain volatile, and future directions will depend on the Consumer Price Index and Producer Price Index reports. A lower-than-expected inflation number can boost growth sectors like technology and consumer discretionary, as lower inflation reinforces expectations of more than one Fed rate cut. However, if inflation exceeds expectations, the market may fall as chances of rate cuts diminish, and more aggressive monetary tightening may resurface.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

The global market experienced a significant sell-off this week due to slowdown concerns and a bearish short-term outlook, which influenced investor sentiment. The US market fell the most in one week in 18 months. Meanwhile, the European market responded to the deteriorating global economic growth outlook. Furthermore, the weak corporate earnings reports and economic data from the world’s second largest economy are dragging down the global market.

Brent Crude has fallen to its lowest level in 14 months due to concerns about demand in the United States and China. It is currently trading near $70 and has dropped by nearly 7% in the past week. Gold continues to trade with a sideways bias.

Let’s take a look at how the major stock market indices did this week.

Index	Previous Day Change (%)	WoW Change (%)
US Markets
Dow Jones	-1.01	-2.93
S&P 500	-1.73	-4.25
Nasdaq	-2.55	-5.77
European Markets
FTSE 100	-0.74	-2.33
CAC 40	-1.08	-3.65
DAX	-1.50	-3.20
Asian Markets
Nifty 50	-1.17	-1.79
Nikkei 225	-0.73	-5.84
Straits Times	-0.12	0.34
Hang Seng	-0.07	-.2.34
Taiwan Weighted	1.15	-3.74
KOSPI	-1.23	-4.86
SET Composite	1.64	5.05
Jakarta Composite	0.53	0.67
Shanghai Composite	-0.81	-2.69

US Markets

Negative events in the economy resulted in the US stock market entering a bearish state. Weak labor market, rout in tech stocks, and job cuts all affected the market. 

The country added 142,000 jobs in August, against expectations of 160,000 jobs. Also, July’s gain was revised down, which further complicated the economic growth revival picture. 

Let’s check how the top US indices performed during the week. 

Dow Jones

Amidst the broader pullback in the market, Dow Jones dropped by 1.01% on Friday, and for the entire week, the index reported a cumulative loss of 2.93%. 

S&P 500

S&P 500 retracted the most on the weekly basis in 18 months as fears of recession rising among investors. The index dropped by 1.73% on Friday, taking the weekly loss to 4.25%. 

Nasdaq

Sell of tech stocks and growth worries made the situation worse for Nasdaq. Nvidia, one of the most valuable tech companies in the world, has dropped by close to 14% in the last five trading sessions. On Friday, the index closed 2.55% lower and on a week-on-week basis, it dropped by 5.77%. 

European Markets

Echoing the US market sentiments, European markets also traded with a bearish note during the week. Concerns of disinflation and structurally sluggish economic growth also give investors some worries.

Now, let’s look at how the top three European indexes performed during the week.

FTSE 100

Compared to European peers, and the US market, the UK stock market index, FTSE 100, fell significantly lower. On Friday, the index was down by 0.74% and on a week-on-week basis, it was down by 2.33%. 

CAC 40

Mixed economic data, and fears of slowdown in US economic growth soured investor sentiment. Paris bourse CAC 40 was down by 1.08% on Friday, taking the weekly cumulative loss to 3.65%. 

DAX

In July, German manufacturing orders increased by an unexpected 2.9%. However, industrial production in Germany fell much more than expected, by 2.4% sequentially, after rising 1.7% the previous month.

During the week, Germany’s primary stock market index, DAX, registered a total loss of 3.2%. In Friday’s session, it was down by 1.50%. 

Asian Markets

Global factors combined with back to back weak economic indicators from world’s second largest economy resulted in the market to trade with a negative bias, with few exceptions around. 

Let’s now have a look, how the major stock market index performed during the week. 

Nifty 50

Historically, a weak month, the Indian market continued to be under corrective pressure. During the week, Nifty 50 went past 25,000 level, hitting a new all time high level. But, failed to maintain the positive momentum. On Friday, Nifty 50 was down by 1.17%, and on a week-on-week basis, it was down by nearly 1.8%. 

Nikkei 225

Weakness in semiconducor stocks and yen strength posing a challenge for Japan’s export-oriented companies kept the market under pressure. On Friday, Nikkei 225 was down by 0.73% and on a weekly basis, the total losses for the index was nearly 6%. 

Straits Times

Bucking the trend, Singapore’s equity market traded on a flat note this week. On Friday, the index was slightly down by 0.12% and on a weekly basis, it was up by 0.34%.

Hang Seng

The Hang Seng index was flat on Friday’s session and was slightly down by 0.07%. And, on a week-on-week basis, the index reported weekly cumulative loss of 2.34%. 

Taiwan Weighted

Taiwanese stocks were higher at the close of trade on Friday. Its primary stock market index, Taiwan Weighted Index, was up by 1.15% at the close on Friday, but on a week-on-week basis, it was down by 3.74%. 

KOSPI

The South Korean equity market index witnessed a second weekly loss due to the tech sell off. On Friday, the index was down by 1.23%, and for the total week, the losses increased to 4.86%. 

SET Composite

Thailand’s equity market stood out among global indices. The index rose 1.64% on Friday, bringing its total gains for the week to 5.05%. 

Jakarta Composite

Indonesian stock market index, Jakarta Composite traded mostly sideways during the week. It was up slightly by 0.53% on Friday and on a week-on-week basis, it was up by 0.67%.

Shanghai Composite

Weak housing sales data and weak corporate earnings reports, resulted in lowering buying sentiment among investors. During the week, Shanghai Composite fell by 2.69% and on Friday, it was down by 0.81%. 

Wrapping Up

In the face of a turbulent global market, the outlook remains uncertain as economic concerns weigh heavily on investor sentiment. While short-term volatility has affected major indices, long-term prospects will depend on how economies address these challenges. As we move forward, closely watching key economic data, corporate earnings, and global developments to navigate the current market landscape will be important. Staying informed and cautious could be essential as the markets adjust to these ongoing shifts.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

Reducing recessionary fears in the United States and positive commentary from central banks worldwide are boosting global markets, including Europe. Following initial jerks in August, European markets have returned to positive territory over the last month. 

The Paris Olympics boosted Eurozone economic activity in August after stalling in July. According to S&P Global’s purchasing manager index (PMI), the services sector output rose to a four-month high of 51.2 from 50.2. Meanwhile, manufacturing production continued to contract for the 17th month because of weak foreign demand. 

Also, the probability of the ECB cutting interest rates in September has strengthened as inflation continues to decline. Germany, regarded as the engine of the EU, recorded a GDP contraction in the second quarter of 2024, shrinking by -0.1% quarter-on-quarter from +0.2% from January to March. 

Top Gainers and Losers in the European Stock Market

Top Gainers

The following are the top gainers in the last one week. 

Stocks	Last 7 Days Gains (in %)
Delivery Hero SE	11.15
BASF SE NA O.N.	4.82
Vonovia SE	4.77
Ferrari	4.41
Universal Music Group	4.32

Top Losers

The following are the top losers in the last one week across various sectors:

Stocks	Last 7 Days Loss (in %)
ASML	6.02
AEGON	5.91
Salmar ASA	5.41
Maersk	4.33
BE Semiconductor Industries	4.18

There was no clear trend in the market, which sector contributed to the market’s positive momentum. Essentially, Finance stocks led the gains in the market, followed by health technology, Consumer Durables, and Utilities. While Electronic Technology, Energy Minerals, and Technology Services stocks were mainly down.

Let’s check how the top European Indices performed. 

STOXX Europe 600

Europe’s largest stock market index, the STOXX Europe 600 index, representing almost 90% of the European market, traded positively over the week. As of 28 August, the index has traded higher by 1.26% over the last five days and is up by 1.39% over the month. 

The index reversed all the losses it recorded in the first week because of the Yen Carry Trade sell-off. STOXX Europe 600 is currently experiencing resistance at around 520, but the upside momentum continues to be strong. A break above 525 would be highly positive for the index. 

FTSE 100

UK Purchasing managers’ data for August showed that private sector output continued to grow steadily, aided by stronger new orders. The S&P Global Composite Purchasing Managers’ Index for August was 53.4, up from 52.8 in July, the highest since April.

As of 28 August 2024, the FTSE 100 is trading with a positive bias. It has been slightly down by 0.14% in the last five days. 

The index is trading range-bound and experiencing strong resistance at around 8,350. Failure to break above this level may lower the market; however, the 50-day Moving Average slope will likely provide strong support. The index must break above the 8,450 level with strong momentum to continue moving higher. 

CAC 40

The S&P Global-compiled HCOB flash purchasing managers index for France’s services sector rose to a 27-month high of 55.0 in August, up from 50.1 in July and far exceeding expectations. As of 28 August 2024, CAC 40, France’s primary stock market index, has increased by 1.05% over the last five days.

Looking at the daily chart, CAC 40 has broken above the psychologically important 50-day moving average slope, indicating bullish momentum in the short term. The 7,730 level above is the index’s next major zone. 

DAX

The contraction in the second quarter GDP number has again raised recessionary fears driven by reduced household consumption and investment. Exports of goods and services fell 0.2% from the first quarter of 2024, reflecting lower global demand and supply chain disruptions.

Following the global cues, the German index DAX has been up by 1.76% in the last five trading days. 

The market’s overall momentum is strong. It is trading close to one of its major resistance levels, 18,700. A break above would be highly positive for the market. Conversely, the index is likely to test for support before continuing to increase. 

The global stock market recovered during the week as fears of recession in the US subsided with positive news on inflation and economic growth. On the other hand, the European market found strength on the back of increasing hopes of rate cuts and improved economic sentiment. The Asian market followed the global cues, with the Nikkei 225 index leading the charge of top gainers. 

Gold climbed 4.68% during the week, reaching a new high level, while crude oil continued to trade weak. 

How the major stock market indices did this week

Index	Previous Day Change (%)	WoW Change (%)
US Markets
Dow Jones	0.24	2.94
S&P 500	0.20	3.93
Nasdaq	0.21	5.29
European Markets
FTSE 100	-0.43	1.75
CAC 40	0.35	2.48
DAX	0.76	3.38
Asian Markets
Nifty 50	1.65	0.62
Nikkei 225	3.51	8.67
Straits Times	1.11	3.63
Hang Seng	1.84	1.99
Taiwan Weighted	2.03	4.10
KOSPI	1.95	4.20
SET Composite	1.01	0.46
Jakarta Composite	0.30	2.41
Shanghai Composite	0.07	0.60

World Stock Market Index: US Markets

US stock market indices rebounded sharply during the week, marking the best week since November 2023. Positive commentary from the Fed on rate hikes and an uptick in retail sales in July helped the market reverse the August 5th sell-off loss. 

Let’s see how the world’s most tracked indexes performed.

Dow Jones

The 30-component index closed the week positively, supported by gains from industrial giants like Boeing, Cisco, and others. On Friday, Dow Jones gained 0.24%, and on a weekly basis, the index was up by 2.94%. 

S&P 500

Improved consumer sentiment in July helped the S&P 500 index gain higher during the week. The market ignored the weak housing sector report, which indicated new housing activity has retreated to early pandemic levels.  On Friday, the S&P 500 index was marginally higher by 0.20%, but it posted strong gains of 3.93% on a week-on-week. 

Nasdaq

The rally in tech stocks led to solid gains in Nasdaq, with Nvidia leading the charge. On Friday, Nvidia posted the best weekly gains of 18%, after posting four consecutive weeks of less. Year-to-date, the stock has gained 149%.  On Friday, the Nasdaq traded flatly, recording a slight gain of 0.21%. On a week-on-week basis, the index gained 5.29%. 

World Stock Market Index: European Markets

Improved sentiment in the US market, dovish central bank commentary, and improving economic indicators helped the European market to trade positively during the week. 

Let’s look at how the top three European indexes performed during the week. 

FTSE 100

In July, headline inflation in the UK rose to 2.2% from 2.0% in June. However, growth in service prices slowed more than expected, which increased hopes for a higher likelihood of interest rate cuts later this year. 

On the other hand, GDP expanded 0.6% sequentially during the April to June quarter, putting the economy on a strong footing. 

On Friday, the FTSE 100 was slightly down by 0.43%. On a weekly basis, the index concluded the week with gains of 1.75%. 

CAC 40

France grew at 0.3% this quarter, the same rate as the previous quarter. Although the country may see an economic boost from the Olympics in the third quarter of this year. On Friday, the country’s primary stock market index, CAC 40, gained 0.35%, taking the total weekly gain to 2.48%. 

DAX

Germany, the eurozone’s largest economy, experienced a surprise contraction of 0.1% in the second quarter of 2024, against the expected 0.5% increase. This compares to a 0.2% increase in the previous first.

However, the market shrugged off the weak GDP growth data, and DAX rose by 0.76% on Friday. On a weekly note, the index gained 3.38%. 

World Stock Market Index: Asian Markets

Reversing the trend, Japan led the gains in the Asian market. Better-than-expected economic data from the United States boosted sentiment, easing fears of a recession in the world’s biggest economy.

Let’s look at how the primary stock market index performed during the week. 

Nifty 50

It was a volatile week for the Indian market as major indices sought triggers. On Friday, the Nifty 50 traded on a positive note and gained 1.65%, helping it to wipe the weekly loss and gain 0.62% at the close of the week. 

Nikkei 225

Japan’s second-quarter GDP growth beat expectations by expanding 0.8% from the previous week, thus improving overall market sentiment. On Friday, Nikkei 225 gained 3.51%, taking the total weekly gains to 8.67%. 

Straits Times

Following global cues, Singapore’s primary stock market index traded higher. It rose 1.11% on Friday and fell 3.63% week on week.

Hang Seng

Tracking the gains of the US and European markets, the Hang Seng index gained during the week. On Friday, the index was up by 1.84%, and on a week-on-week basis, it was up by 1.99%.

Taiwan Weighted

Supported by improved sentiment in the US market and a rally in tech stocks, Taiwanese equity traded positively. On Friday, the index traded higher, going up by 2.03%, and on a week-on-week basis, it was up by 4.10%

KOSPI

The South Korean market posted its best week in seven months, as its primary stock market index, KOSPI, rose 1.95% on Friday, taking its weekly gains to 4.20%. 

SET Composite

Thailand’s equity market index, SET Composite, traded higher on Friday by 1.01%, wiping out the weekly loss and closing the week with a total gain of 0.46%.

Jakarta Composite

Jakarta Composite was up by 0.30% on Friday and 2.41% week-on-week.

Shanghai Composite

Mixed economic indicators kept the Chinese market volatile. Industrial production increased by a lower-than-expected 5.1% in July compared to a year earlier, slowing from a 5.3% increase in June, owing to lower auto sales. Retail sales increased by a better-than-expected 2.7% in July compared to a year earlier, up from 2% in June. 

Over the week, Shanghai Composite traded on a bearish note. On Friday, it was slightly up by 0.07%, but on a week-on-week basis, it was up by 0.60%. 

Wrapping Up

With economic sentiment improving across regions, the markets could continue to show resilience. However, with mixed indicators and ongoing uncertainties, investors should remain cautious and closely monitor upcoming data and central bank decisions.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

Following last week’s chaos in the market, investor fear has subsided, and the global market is regaining its footing. Lower-than-expected producer price index data in the US has increased hopes for a rate cut by the Fed in September, leading to a surge in stock prices in the US and affecting the Asian market. 

Uneven economic recovery in China, coupled with a lack of consumer spending and lagging industrial activity, continues to be a cause of concern for global growth recovery. This led to foreign investors pulling out a record $15 billion from China in the last quarter. 

Let’s look at how the top Asian indexes performed during the week. 

Nikkie 225

Nikkie 225 recorded last week’s worst fall of the decade, erasing all the gains from this year’s rally. However, the market recovered following positive commentary from the Bank of Japan and a surge in tech and finance stocks. 

In July, Japan’s producer price index increased by 3% yearly, outpacing the 2.9% increase in June. 

The week starting 12 August 2024, Nikkei 225 traded with a positive bias, as it got support from the improving sentiment of the global market. In the last week, the index has gained nearly 4.3%. But in the previous month, it has been down by 12.4%.

Looking at the daily chart of the Nikkei 225 index, we can see that after the massive fall, the index has quickly recovered and is moving towards the next significant resistance at around 37,000. If the current momentum persists, we may see more buying in the market. Below is strong support at the 34,000 level, tested recently, and the index bounced back from there. 

Contributions from all sectors, particularly Finance, Producer Manufacturing, Technology Services, and Electronic Technology, are increasing the market.

Following are the top gainers in the last one week

Stocks	Last 7 Days Gains (in %)
Mitsubishi Heavy Industries	22.57
Recruit Holdings Co Ltd	18.38
Sumitomo Mitsui Financial Group	18.22
Softbank Group Corp	15.70
Mizuho Financial Group	14.88

Hang Seng

Last week’s China’s inflation numbers fuelled hopes for increased demand. The annual inflation rate increased from 0.2% in June to 0.5% in July. Upward trends in consumer price inflation likely indicated an increase in private consumption and economic activity.

In the last week, Hang Seng has traded with positive momentum and has gained nearly 3%. 

As reported by Bloomberg, The persistent economic slowdown in China has worried investors and increased pessimism, prompting them to withdraw their funds. Foreign investors withdrew a record $15 billion from China in the fourth quarter (April-June 2024), the highest in recent years. 

Hang Seng continues to trade on a bearish note. The daily chart shows that the index has bounced higher after testing one of its major support levels at around 16,500. We may see more buying if the index breaks above its next significant resistance at the 17,150 level. 

Finance, Energy Minerals, and Technology Services are the major contributors to this week’s index gain.

The following are the top gainers from the last week. 

Stocks	Last 7 Days Gains (in %)
Industrial & Commercial Bk Of China	7.38
Cnooc Limited	6.84
PetroChina	5.17
Tencent	4.79
China Mobile	3.68

Nifty 50

Amid high valuation concerns and volatility in the global market, the Indian stock market continues to trade on a negative. Top indices like the Nifty 50 have failed to recover the prior week’s losses. In the last five trading sessions, the Nifty 50 is slightly lower by 0.52% and is down by nearly 3.74% from its peak. 

Looking at the daily chart of Nifty 50, the index trades closely above the 50-day moving average slope, providing support. The Nifty 50 needs to cover the gap with solid momentum to move higher. If it breaks the 50 DMA slope, the market may move much lower toward its next support at the 23,660 level. 

Unlike their Asian counterparts, the Finance, Non-Energy Minerals, and Communication sectors are the index’s worst performers. IT, Energy, Consumer Durable, and Nondurable stocks all support the index. 

The following are the top gainers in the last one week. 

Stocks	Last 7 Days Gains (in %)
ONGC	6.70
JSW Steel	4.71
Cipla	4.66
Coal India	2.69
Tech Mahindra	2.59

The following are the top losers in the last one week across various sectors:

Stocks	Last 7 Days Loss (in %)
BPCL	6.22
NTPC	4.13
Grasim	4.10
HDFC Life	3.77
State Bank of India	3.05

Conclusion

As we move forward, global markets seem to stabilize after last week’s chaos and extreme volatility, driven by optimism around a potential rate cut in the US. However, uncertainties remain. Investors should stay cautious and closely monitor economic indicators and central bank actions in the coming weeks.

*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

The extended slowdown in economic activity in the US has once again fueled recessionary fears in the country. Goldman Sachs’s economist increased the likelihood of a recession next year to 25% from 15%. This spooked investors worldwide, including the European stock market. 

Also, the unwinding of the Yen Carry Trades in the global market has caused a massive sell-off. According to a news report, Yen Carry Trades in the worldwide market was reportedly around $4 trillion last week. 

However, investor sentiment remains bearish as markets cool down from increased volatility. The economic indicators in the Eurozone area are not positive either. The report showed Retail sales declined by 0.3% month-over-month in June, compared to the expectation of 0.1%. 

With so much economic uncertainty surrounding the global market, the focus has shifted toward the central bank’s actions, including whether it will pursue an early rate cut.  

Top Gainers and Losers in the European Stock Market

Top Gainers

The following are the top gainers in the last one week. 

Stocks	Last 7 Days Gains (in %)
Rolls Royce	6.24
KYGAA	6.22
Haleon PLC	5.68
Galderma Group	5.26
Rational AG	4.85

Top Losers

The following are the top losers in the last one week across various sectors:

Stocks	Last 7 Days Loss (in %)
Banco Bilbao Vizcaya Argentaria	13.93
Unicredit	13.70
STMICROELECTRONICS	13.92
PKOBP	11.49
ASM International	10.46
ABB Ltd.	9.03%

During the week, the market’s losses were not limited to one sector. The sectors with the greatest losses are financials, producer manufacturing, technology services, and consumer non-durables. Despite the losses, the Electronic Technology and Health Technology sectors are showing strength in the market.

STOXX Europe 600

The STOXX Europe 600 index is Europe’s most extensive stock index, replicating almost 90% of the European market. The overall sentiment continues to be extremely bearish. As of 7 August, the index is down by 5.02% over the last five days.

After the gap-down opening on Monday, the index trades on a bearish note. STOXX Europe 600 is now experiencing strong resistance at around 490. If the index fails to cover the gap or moves higher above the 500 level, weakness will likely persist. Below 480 is a strong support level. 

FTSE 100

Last week, the UK’s Bank of England cut the short-term borrowing rates, bringing them down from a 16-year high level to support the economy and keep the growth momentum intact.  Also, The UK’s consumer price index stayed within the central bank’s 2% target in June.

Despite the massive sell-off on Monday, the index closed above one of its key support levels at around 8,000 and is witnessing buying. The 8140 level is extremely resistive; the index might be challenging to break above it. If it breaks below the 8000 level, the next major support is around the 7700 level. 

CAC 40

The French economy is likely to have an Olympic ripple and is expected to grow by 0.3% in the third quarter, compared to the initial forecast of 0.1%. 

As of 7 August 2024, CAC 40, France’s primary stock market index, was down by 5.75% over the five days, showcasing extreme levels of volatility. Despite the cooling down, the market recovery was muted as traders avoided placing large bets, reassessed the impact of the pullback, and awaited new bullish triggers.

CAC 40 broke below one of its key support levels at around 7,300 and has formed a head-and-shoulder pattern on the daily chart, which is a bearish formation. The index is now experiencing strong support at the 7,050 level, and to reverse the bearish formation, it needs to break above the 7,320 level with solid momentum. 

DAX

German factory orders rose for the first time in a year, backed by solid demand in the auto and metal sectors. However, the DAX 30 continues to witness extreme volatility. As of 7 August 2024, the index was down by more than 6.5% over the five days. 

The European market’s overall momentum has turned negative. It is trading close to one of its major support levels, around 17,300. A break below could result in more selling. Conversely, the index needs to clear above the 17,750 level to break away from the bearish momentum. 

Conclusion 

Due to several factors, European stocks are expected to remain under pressure as we move forward. All eyes will be on central banks and their next moves, which will be crucial in determining the market’s direction. Keeping an eye on all market developments is crucial to making informed investment decisions amidst these rapidly evolving changes in the market. 

*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

It was a pretty volatile week for the global market. A massive downturn in economic activities was reported across the world’s largest economy, and second-quarter corporate earnings were weak. The impact spilled over to other parts of the world, including Europe and Asia. 

Crude oil prices continued to fall this week, with Brent Crude dropping more than 6% to settle below $80. Meanwhile, gold maintains bullish momentum due to investors’ high-risk aversion. 

Let’s look at how the major stock market indices did this week

Index	Previous Day Change (%)	WoW Change (%)
US Markets
Dow Jones	-1.51	-2.10
S&P 500	-1.84	-2.06
Nasdaq	-2.43	-3.35
European Markets
FTSE 100	-1.33	-1.34
CAC 40	-1.64	-3.54
DAX	-2.39	-4.11
Asian Markets
Nifty 50	-1.17	-0.80
Nikkei 225	-6.17	-4.67
Straits Times	-1.14	-1.31
Hang Seng	-2.12	-0.45
Taiwan Weighted	-4.64	-2.18
KOSPI	-3.79	-2.04
SET Composite	-0.74	0.45
Jakarta Composite	-0.24	0.27
Shanghai Composite	-0.93	0.50

US Markets

In the July meeting, the Federal Reserve decided to keep the interest rates on hold again on expected lines. But, the market was looking for the commentary in which Fed Chair Jerome Powell indicated strongly about the September rate cut. 

July non-farm payroll was below expectations. It rose by only 114,000, compared to the expectations of 185,000. The unemployment rate surged to 4.3%.

On the other hand, weak corporate earnings and guidance continue to hurt the world’s largest market. Amazon slipped more than 11% on Friday after revenue missed estimates and increased the capital expenditure needed to support the company’s AI program. Intel also nosedived more than 26% on Friday after the company handed out pink slips to 15,000 staff.

Let’s see how the world’s most tracked indexes performed.

Dow Jones

Amid recession fears in the economy caused by disappointing job data, companies handing out pink slips, and weak corporate earnings, the Dow Jones Industrial Average (DJIA) fell nearly 1.51% on Friday, bringing the total loss of the week to 2.10%. 

S&P 500

Disappointed economic data shocked investors and massive selling in tech stocks resulted in a pullback in the S&P 500 index. On Friday, the index was down by 1.84%, and the cumulative loss was 2.06% on a week-on-week basis. 

Nasdaq

Massive selling in tech stocks continued to hurt the tech-heavy index. On Friday, the Nasdaq fell by 2.43%, bringing its cumulative loss for the week to 3.35%. 

European Markets

Weak investor sentiment in the US also impacted the European equity market. While the Eurozone economy expanded 0.6% on a year-on-year basis in the second quarter of 2024, initial estimates show that annual inflation in the region rose to 2.6% in July compared to 2.5% in June. Also, the unemployment rate ticked up to 6.5% in June. 

Let’s look at how the top three European indexes performed during the week. 

FTSE 100

The UK stock market was steady during the week, but it fell on Friday due to weakness in the global market. The Bank of England cut its key interest rate by 0.25% to 5.00%, the first reduction since the coronavirus pandemic began in March 2020.

On Friday, FTSE 100 was down by 1.33%, taking the weekly cumulative loss to 1.34%. 

CAC 40

Amidst the Olympics euphoria in Paris, CAC 40, the primary stock market index, was down by 1.64% on Friday’s session. The index concluded the week with a loss of 3.54%. 

DAX

Recessionary fears in the US and challenging economic conditions in Germany continued to hurt the German stock market. The DAX witnessed a sharp fall during the week. On Friday, the index was down by 2.39%, concluding the week with a cumulative loss of 4.11%. 

Asian Markets

Following the global cues, the Asian market also traded weakly during the week. Domestic factors also affected the respective markets. Let’s examine how the primary stock market index performed during the week. 

Nifty 50

The Indian market had an incredibly volatile week. The market was buoyed by corporate earnings data that exceeded expectations. However, the market saw extreme volatility on Friday, with the Nifty 50 falling by 1.17%. On a weekly basis, it decreased by 0.80%. 

Nikkei 225

Disappointing macroeconomic data and the Bank of Japan’s hawkish stance on rate hikes resulted in a sharp fall in Nikkie 225. During the week, the Bank of Japan raised short-term interest rates to 0.25%.

The hike was the second time in the year. The Bank also indicated it would start tapering monthly bond purchases, moving away from the ultra-loose monetary policy. On Friday, Nikkei 225 fell sharply by 6.17%, and on a week-on-week basis, it was down by 4.67%. 

Straits Times

Following the global cues, Singapore’s primary stock market index traded on a bearish note. It was down by 1.14% on Friday and by 1.31% on a week-on-week basis.

Hang Seng

Chinese equities were mixed after disappointing manufacturing data dampened investor sentiment. On Friday, Hong Kong’s benchmark Hang Seng Index was down 2.12%, or 0.45%, from its weekly total loss.

Taiwan Weighted

The sharp decline in US tech stocks and recessionary fears due to slowing economic growth resulted in a big fall in the Taiwan Weighted Index. Taiwan is the top US trade partner and supports the global economy’s manufacturing supply chains. Any slowdown in the US and global economies will hurt the Taiwanese economy. 

On Friday, the Taiwan Weighted Index was down by 4.64%, wiping out the week’s gains. The total loss was 2.18%. 

KOSPI

South Korea’s headline inflation rose faster than expected in July, affecting investor sentiment. On Friday, the primary stock market index of South Korea, KOSPI, was down by 3.79%. On a weekly basis, the index fell 2.04%.

SET Composite

Thailand’s equity market index, SET Composite, was down by 0.74% during Friday’s session but closed the week higher by 0.45%.

Jakarta Composite

Bucking the global cues, the Indonesian stock market traded flatly during the week. On Friday, the Jakarta Composite was slightly down by 0.24%; on a week-on-week basis, it was up by 0.27%.

Shanghai Composite

China’s manufacturing Purchasing Managers’ Index (PMI) slipped to 49.4 in July from 49.5 in June, marking the third consecutive monthly contraction. 

Over the week, the Shanghai Composite traded flat. On Friday, it was down by 0.93%, but on a week-on-week basis, it was up by 0.50%. 

Wrapping Up

As we look ahead, market volatility is likely to persist as investor sentiment has turned negative. Closely watching the economic indicators, corporate earnings reports, and central bank commentary will help you gauge the future direction of the markets. As volatility persists, a cautious and well-diversified investment approach remains essential.

*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

The US stock market is showcasing mixed performance due to heavy selling in tech stocks, disappointing second-quarter results from key industry players, and investors awaiting the outcome of the two-day Federal Reserve policy meeting that started on Tuesday.

On the economic front, CB Consumer Confidence rose from 97.8 in June to 100.5 in July, exceeding the forecast of 99.7. JOLT’s Job Openings decreased from 8.23 million in May to 8.18 million in June. In May, the Case-Shiller Home Price Index rose by 1.0% monthly, compared to the expected 1.2% increase.

Top Gainers and Losers in the US Stock Market

Top Gainers

The following are the top gainers in the last one week. 

Stocks	Last 7 Days Gains (in %)
3M	20.22
CBRE Group	13.87
RTX Corporation	12.63
Lockheed Martin	9.99
AON	9.79

Top Losers

The following are the top losers in the last one week across various sectors:

Stocks	Last 7 Days Loss (in %)
Nvidia	15.52
Tesla	12.22
AMD	10.66
AVGO	10.52
Intel	8.59

The top gainers in the index continue to skew towards Electronic and Health Technology stocks. 3M is the top gainer in the S&P500 index because its strong earnings beat analysts’ expectations. CBRE Group’s stock also benefits from the robust earnings report. 

On the other hand, tech stocks, especially AI stocks like Nvidia and AVGO, are under extreme selling pressure because of valuation and demand concerns. Also, Tesla’s stock is impacted by weak Q2 earnings, which were way below analysts’ expectations.  

How did the US stock market indexes perform during the week?

Nasdaq 100

Broader pullbacks in tech stocks and weak earnings by key industry players like Tesla, Meta, and Alphabet have pressured Nasdaq. Traders are worried that high AI spending would hurt profits and that premium valuations of tech companies are not justifiable. 

On Tuesday (30th July 2024), the Nasdaq 100 continued to trade with a negative bias, losing 1.38%. The index has been down 3.49% in the last five trading sessions. 

Looking at the daily chart, the overall momentum of the index has turned negative. The index has broken below the 50-day Moving Average, offering firm support and moving further lower. The Nasdaq is now below one of its key support levels, 18,900. The next major support is at around 18,500. 

S&P 500

The S&P 500 index showcases resilience and falls less than the Nasdaq because of its diversified exposure and investors’ preference for defensive stocks amidst extreme volatility in high-growth tech stocks. 

On Tuesday (30th July 2024), the S&P 500 ended the day lower, down 0.50%. The index was down more than 1.2% in the last five trading sessions. 

The 50-day Exponential Moving Average slope strongly supports the index, coinciding with its primary support level of 5,450. A break below these support levels will turn the market’s momentum negative. The following two major support levels are approximately 5,370 and 5,260. 

Conclusion:

As we move forward, the market’s direction will likely hinge on the Federal Reserve’s policy meeting outcomes and the ongoing earnings season. The tech sector’s performance will be closely watched, especially given recent volatility. Investors should remain cautious, focusing on diversified portfolios and defensive stocks to navigate the current market uncertainty.

*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

Global market sentiment remains low, with weak US and European stocks leading the way. With central banks in the United States and Europe painting a bleak picture of the economy and a persistent slowdown in economic activity in China, investor sentiment in the Asia stock market has remained low.

Crude oil prices have also fallen dramatically over the last week. Brent Crude has dropped more than 4% and is currently trading around $81 due to a weak demand forecast. On the other hand, gold prices have begun to rise again.

Let’s look at how the top Asian indexes performed during the week. 

Nikkie 225

The lack of positive economic indicators continues to hurt the Japanese stock market. The momentum remains largely negative as the country struggles to revive growth. In the first quarter of 2024 (Jan to March), the economy fell faster than expected, shrinking by 2% annually. 

Traders are now looking forward to July’s Services PMI numbers. A higher Services PMI would raise investors’ expectations of a July Bank of Japan rate hike. 

The services sector employs more than 70% of Japan’s workforce. Rising service sector activity would increase employment, boosting wage growth and consumer spending. The week starting 22nd July 2024, the Nikkei 225 has been trading with a negative e-bias. The index has been down by about 4.34% in the last week.

The daily chart of the Nikkei 225 index shows that it has turned from the 41,000 level and is going south, as it failed to gain enough buying momentum. The 39,000 level below looks to be a strong support level for the index. If the market finds it too difficult to gain upside momentum and breaks its immediate support at the 39,000 level, then the next major support is at the 37,000 level.

The sectors driving the market down are Producer Manufacturing, Consumer Durables, and Electronic Technology.

Stocks	Last 7 Days Gains (in %)
Tokyo Electron	14.57
Disco Corporation	12.46
Hitachi	7.2
SONY	5.99
Misthubisi Heavy Industries	5.58

Hang Seng

China’s GDP increased by 4.7% year on year in the second quarter of 2024, falling short of expectations and slowing from 5.3% growth in the first quarter.

On Monday, July 22, the People’s Bank of China surprised the market by announcing policy measures to boost the Chinese economy. Loan prime rate and Reserve Requirement Ratio cuts focused on Beijing’s worries over slower-than-expected growth in the second quarter of 2024.

Meanwhile, Hang Seng continues to trade on a bearish note. The index has been making lower lows and lower highs on the daily chart, signaling a downtrend. And it has also broken below the 17,500 level, a critical support level. The next major support is at around 17,180 and 16,500 levels. 

Energy Minerals, Technology Services, Producer Manufacturing, and Consumer Non-Durable stocks were the top losers of the week.

Hang Seng Top losers in the last week

Stocks	Last 7 Days Gains (in %)
Zijin Mining Group Co. Ltd	14.55
PetroChina	11.13
CNOOC Limited	7.62
China Resources Land	7.48
Nongfu Spring Co Ltd	5.38

Nifty 50

The Indian stock market was highly volatile during the past week because of mixed global signals and the new government’s first union budget. Because of the increased volatility, the Nifty 50 returned from 24,854.80 (its all-time level) this week. 

However, overall momentum continues to be positive. The improving outlook of the major IT companies contributed to the index’s growth in the past few sessions. This week, both the Nifty 50 and Sensex hit fresh record highs. However, in the last five trading sessions, the Nifty 50 has been slightly lower by 0.59%. 

Looking at the daily chart of Nifty 50, the index failed to move higher and made its all-time high level as a new resistance. To resume the upside trajectory, it must clear above this level with solid momentum. Below, the 24,230 level is likely to support the index strongly. On RSI, we can see that the current upside momentum is weakening.

Like the global market, the Energy, Minerals, and Finance sectors are the top losers, while the IT sector stocks gained the most. 

The Top Gainers in The Last Week

Stocks	Last 7 Days Gains (in %)
Titan	8.37
ITC	8.02
Infosys	6.57
HUL	3.72
TCS	3.48

The Top Losers in the last one week

Stocks	Last 7 Days Loss (in %)
Bajaj Finance	7.45
Reliance	6.96
Shriram Finance	5.54
Axis Bank	4.47
Kotak Mahindra Bank	3.59

Conclusion

As markets navigate these challenging times, investors will likely stay cautious, closely watching economic indicators, central bank actions, and corporate earnings. The next few weeks will be crucial in determining whether the markets can regain their footing or continue on a downward trajectory.

*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

Introduction

Multiple factors kept European stocks under pressure the week starting July 17, 2024, led by the decline in commodity stocks. Many luxury brands, like Germany’s Hugo Boss and the UK’s Burberry, either cut down on full-year sales outlook or issued profit warnings on weak luxury demand, showcasing weak consumer sentiment. 

However, what supported the market was dovish commentary from Fed Chair Jerome Powell, suggesting earlier-than-expected rate cuts and not waiting for inflation to get down to 2%, thus fueling speculation of multiple rate cuts. 

The emerging political scenario in the US will also likely affect the European market in the coming days. European stocks are also being impacted by the waning Chinese economy. In Q2, the Chinese economy grew by 4.7% year-on-year, down from 5.3% in Q1. This slowdown is adversely affecting German companies that deal in luxury goods. 

Eurozone industrial production fell by 2.9% year on year in May, following a 3.1% drop in April. Much of the attention is now focused on Eurozone inflation data, which will be released today (Wednesday), and the ECB press conference on Thursday.

Top Gainers and Losers in the European Stock Market

Top Gainers

The following are the top gainers in the last one week. 

Stocks	Last 7 Days Gains (in %)
Kongsberg Gruppen	20.83
Ashtead Group	6.88
ROCHE	6.06
Segro Plc	4.35
LIFCO AB	5.46

Top Losers

The following are the top losers in the last one week across various sectors:

Stocks	Last 7 Days Loss (in %)
Swatch Group	8.31
Verallia	7.86
KGHM	5.51
Kering	4.71
Galp Energia	4.41

Know More: Can The 15x15x15 Rule Help You Become a Crorepati?

The losers in the European market mainly belong to the Consumer Durables, Energy Minerals, Non-Energy Minerals, and Consumer Non-Durable segments. The Producer Manufacturing, Finance, and Health Technology segments showcase market strength.

Now that you know the top gainers and losers in the European stock markets, let’s see how the European indices fared during the week.

STOXX Europe 600

STOXX Europe 600, the largest stock index replicating almost 90% of the European stock market, is trading weak. With deteriorating investor sentiment and suggested recovery in the Euro economy looking bumpy, the index is likely to deal with a bearish note unless there is a monetary push by central banks. 

STOXX 600 failed to break above 525 for the third time in a row, indicating that it has become highly resistant. The Relative Strength Index, a momentum indicator, is falling, indicating a loss of bullish momentum. The 510 and 500 levels below provide strong support for the index. 

FTSE 100

Despite improving economic indicators, the FTSE 100 failed to maintain its positive momentum, giving up its gains in the previous week. 

UK GDP increased by 0.4% in May, following zero growth in April. Increases in service and construction output fueled the increase. On a rolling three-month basis, the economy expanded by 0.9%, the fastest rate since 2022. 

After failing to break above the resistive 8,290 level for the fourth time in a row, the index showcased weakness and fell toward its immediate support level of 8,140. A break below this level could trigger further weakness in the market and send it below the 8,000 level. The RSI index is also below 50, suggesting weak momentum in the market. 

CAC 40

Political and economic uncertainty has put pressure on the stock market of the third-largest country in Europe. Experts suggest the country will not gain much economically from the Paris Olympics and is projected to grow by 0.3 percentage points this quarter due to the games. 

CAC 40 has failed to break above the resistive 7,726 level this week and reversed its momentum, erasing the gains it made the previous week. Currently, there is strong support at the 7,480 level, and if it breaks below, we may see more weakness in the market. 

DAX

Germany, Europe’s largest economy, has been severely impacted by weak consumer demand. It was the only G7 economy that contracted last year and is expected to grow slowly again this year. Declining exports, political uncertainty, and central banks’ unclear monetary policies have all contributed to lower consumer sentiment. The ZEW Economic Sentiment Index fell from 47.5 to 41.8 in July, missing expectations and capping an eight-month streak of increases.

DAX pulled back at the start of the week after trying to break above the 18,800 level but failed. It is moving towards one of its strong support levels at around 18,400. The overall momentum continues to be weak, and if it breaks below the 18,400 level, it may test for support at the 18,000 level. 

Conclusion 

Due to several factors, European stocks are expected to remain under pressure as we move forward. The emerging political landscape in the US, along with the impact of China’s slowing economy, will likely influence European markets in the coming days.

Key indices like the STOXX Europe 600, FTSE 100, CAC 40, and DAX exhibit bearish sentiment. The outlook for European stocks remains cautious, and strategic investment decisions will be crucial in navigating this challenging environment.

*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.