Global Stock Market Index: 18th August 2024 Weekly Recap

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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.

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