Global Stock Market Index: 11th August 2024 Weekly Recap

After the initial scare at the start of the week due to the recessionary fears in the US and the unwinding of Yen carry trades, the global market has recovered and stabilized, but the overall sentiment remains weak. 

Investors now focus more on economic indicators and central bank commentary to determine the short-term market direction. 

Due to softer consumer demand and slowing down on economic growth, Crude oil prices continued to fall. Brent Crude is down by nearly 2% over the week, trading near the $77 level. Meanwhile, gold continues to maintain a bullish momentum due to investors’ high risk aversion. 

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

How the global indices performed last week

Index	Previous Day Change (%)	WoW Change (%)
US Markets
Dow Jones	0.13	-0.60
S&P 500	0.47	-0.04
Nasdaq	0.51	-0.18
European Markets
FTSE 100	0.28	-0.08
CAC 40	0.31	0.25
DAX	0.24	0.35
Asian Markets
Nifty 50	1.04	0.63
Nikkei 225	0.55	-2.46
Straits Times	0.37	-4.62
Hang Seng	1.16	0.85
Taiwan Weighted	2.79	-0.78
KOSPI	1.22	-3.28
SET Composite	0.06	-1.22
Jakarta Composite	0.85	-0.94
Shanghai Composite	-0.27	-1.49

World Stock Market Index: US Markets

Continuing growth worries and technical factors causing the sell-off kept the US market primarily volatile during the week. 

The market was surprised by the contraction in manufacturing activity and the increase in the unemployment rate in July. Also, several major companies indicated a demand slowdown in their quarterly earnings reports. Airlines, hotels, and leading food brands such as KFC and Pizza Hut are reporting softer demand and slowing sales. 

Now, a big question remains: Will the Fed pursue more than one rate cut during 2024 to boost growth or stick with its initial plan of one rate cut? 

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

Dow Jones

Dow Jones partly recovered from Monday’s sell-off and showed some resilience. On Friday, the index traded mostly flat, slightly up by 0.13%. On a week-on-week basis, the index was down by 0.60%. 

S&P 500

The S&P 500 index registered a modest 0.47% gain on Friday, helping to break even Monday’s sharp 3% fall. However, despite the recovery, the market is still not out of the woods, as consumer utility stocks were under selling pressure.

Nasdaq

The sell-off in tech stocks continued through the week. The Nasdaq Composite index is down by nearly 16% from its peak, showcasing extreme bearish sentiment in the market. The index followed the broader trend during the market and was up by 0.51% on Friday. On a weekly basis, it was down by 0.18%. 

World Stock Market Index: European Markets

Slowdowns in the US and Chinese economies continue to hurt the Eurozone economy. Retail sales volume in the region unexpectedly declined by 0.3% in June after a 0.1% rise in May. With consumer demand struggling and inflation picking up once again, the market’s momentum remains weak. 

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

FTSE 100

Helped by the lowering of interest rates, the housing market is once again improving in the UK, and overall economic sentiment is improving. 

On Friday, the FTSE 100 was slightly up by 0.28%. The index ended the week flat.

CAC 40

France equities traded on a mixed note on Friday, with CAC 40 up by 0.31%. The index concluded the week with gains of 0.25%. 

DAX

German industrial output increased 1.4% sequentially in June, while industrial orders rose 3.9% seasonally compared to the previous week. Both data points have exceeded expectations.

On Friday, the index was up by 0.24% and concluded the week with a total gain of 0.35%. 

World Stock Market Index: Asian Markets

Japan led the sharp fall in the Asian market because of the Bank of Japan’s surprise rate hike and the Yen’s appreciation against the dollar. While the market has recovered, it continues to be on edge due to the increased uncertainty. 

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

Nifty 50

After the sharp fall of more than 3% on Monday, volatility subsided, and the market ended the week on a positive note. On Friday, the Nifty 50 was up by 1.04%, and on a weekly basis, it was up by 0.63%. 

Nikkei 225

Japan’s stock markets began this week with decades’ most severe one-day sell-off. But, after the comforting central bank commentary, the market rebounded. By the end of the week, Nikkei 225 had regained much of the lost ground. On Friday, the Nikkei 225 was up 0.55% 

Straits Times

Following the global cues, Singapore’s primary stock market index traded on a bearish note. It was down slightly by 0.37% on Friday and 4.62% on a week-on-week basis.

Hang Seng

Gains in US tech stocks at the latter part of the week helped the Hang Seng Index advance by 1.16% on Friday. On a weekly basis, the index was up by 0.85%.

Taiwan Weighted

Recovery in the global market helped Taiwan’s primary stock market index gain higher. On Friday, the Taiwan Weighted Index was up by 2.79%, helping to recover the week’s losses. The total loss of the week was 0.78%. 

KOSPI

South Korea extended gains on Friday, led by Samsung, and improved market sentiments compared to the start of the week. On Friday, KOSPI was up by 1.22%, and the index reported a weekly loss of 3.28%. 

SET Composite

Thailand’s equity market index, SET Composite, traded flat on Friday and gained slightly by 0.06%. The index closed the week lower by 1.22%.

Jakarta Composite

Amid the US economic slowdown, the Indonesian stock market was volatile during the week. On Friday, the Jakarta Composite was up by 0.85%, but on a week-on-week basis, it was down by 0.94%.

Shanghai Composite

China’s consumer price index increased by 0.5% in July compared to the previous year, up from 0.2% in June. The increase reduced concerns about deflationary pressures. In July, imports exceeded expectations, rising 7.2% from a year earlier, following a 2.3% decline in June. Exports increased by a lower-than-expected 7% in July due to slow demand. 

Over the week, the Shanghai Composite traded on a bearish note. On Friday, it was down by 0.27%, but on a week-on-week basis, it was down by 1.49%. 

Wrapping Up

As the global markets stabilized after initial jitters from recession fears in the US and the unwinding of Yen carry trades, investor sentiment remains cautious. 

In the coming weeks, market movements will likely be driven by central bank commentary and economic data as investors look for signs of stability or further volatility.

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