Global Stock Market Index: 21st April ’24 Weekly Recap

The worsening geopolitical situation in the Middle East and the fear of war escalating between Iran and Israel have shaken investors’ confidence. In reaction to this development, all stock market indices worldwide pushed lower during Friday’s session. 

Crude Oil prices also increased in the wake of recent world developments, once again stoking fears of inflationary conditions. This development casts doubt on the Fed’s ability to lower interest rates in the coming months. Gold prices also rose this week, bringing the total gain to more than 16% for the year. 

A quick look at the global market performance last week

Index	Previous Day Change (%)	WoW Change (%)
US Markets
Dow Jones	0.56	0.01
S&P 500	-0.88	-3.05
Nasdaq	-2.05	-5.52
European Markets
FTSE	0.24	-0.35
CAC	-0.01	-0.02
DAX	-0.56	-1.21
Asian Markets
Nifty 50	0.69	-2.50
Nikkei 225	-2.73	-6.21
Straits Times	-0.35	-1.26
Hang Seng	-1.00	-2.98
Taiwan Weighted	-3.96	-5.83
KOSPI	-1.65	-3.35
SET Composite	-2.17	-4.60
Jakarta Composite	-1.12	-2.74
Shanghai Composite	-0.29	1.52

World Market Index: US Markets

Bearish sentiment engulfed the US market, driven by pessimism around rate cuts and weakness in tech stocks. Earlier, Fed Chair Jerome Powell signaled delayed interest rate cuts amid inflationary pressure. 

Barring extreme weakness, the Dow Jones, S&P 500, and Nasdaq showcased extreme weakness. In the coming days, corporate earnings reports will continue to influence the market’s sentiment. 

DOW JONES

Amid the broader market sell-off, the Dow Jones Industrial Average held its ground due to the presence of defensive stocks in the index. Contrary to the other two US indices, Dow Jones increased by 0.56% on Friday and concluded the week flat with a minor gain of 0.01%.

S&P 500

A wider sell-off in the tech stocks resulted in the S&P 500 breaking below the psychologically important 5000 level on Friday. The index declined by -0.88% in Friday’s session and concluded the week with a loss of 3.05%, the worst since March 2023. 

NASDAQ

Due to a heavy sell-off in leading tech stocks due to Nvidia’s weak performance, Netflix pulled the index down. Nasdaq was down by 2.05% in Friday’s session, and on a week-on-week basis, it declined by 5.52%. 

World Market Index: European Markets

The European markets displayed a resilient performance during the week amid higher rate cut speculation and improving economic conditions, especially in managing inflation. GRANOLAS stocks are leading the gains in the European stock market. 

FTSE

Amid easing food prices, UK inflation eased to 3.2%, the lowest since March 2021. However, it is still higher than the Bank of England’s target of 2%. On Friday, the index was up by 0.24% despite opening low. However, on a week-on-week basis, it closed lower by 0.35%. 

CAC

Mixed performance was witnessed as gains in financials, utilities, and industrial sectors helped the index to close flat amid weak sentiments in the market. On Friday, and as well as on a week-on-week basis, the index closed flat. 

DAX

Initial economic estimates show Germany might have expanded in the first quarter of 2024, technically avoiding the winter recession. This boosted investors’ confidence, and DAX fell lower than its global counterparts. On Friday, the index was down by 0.56%, and on a week-on-week basis, it declined by 1.21%.

World Market Index: Asian Markets

The Asian market reacted sharply to the war escalating between Iran and Israel. All major Asian stock indices experienced a downturn and high volatility during Friday’s trading session. Despite these global events, domestic issues primarily influenced the Asian index during the week.

Nifty 50

This week, we have witnessed extreme volatility in the Indian market. The Nifty 50 index saw a substantial shift of over 400 points in Friday’s session yet ended 0.69% up. However, the index experienced a 2.5% decrease on a week-to-week basis. The forthcoming Q4 earnings results will shape the index’s future performance.

Nikkei 225

As did the rest of the global indices, Japan equities traded lower during Friday’s session. Nikkei 225 was down by 2.73%, and on a week-on-week basis, it suffered a massive decline of 6.21%. It is the most significant weekly decline since June 2022. 

Weakness in tech stocks and lower chances of the Fed cutting rates contributed to the drop in the Japanese stock market. 

Straits Times

Following the global cues, The Singaporean index, Straits Times, fell by 0.35% in Friday’s session. And, on a week-on-week basis, the index declined by 1.26%. 

Hang Seng

Hang Seng, which includes the Chinese-H shares- stocks of companies from the Chinese mainland declined by 1% on Friday. The index concluded the week with a cumulative loss of 2.98%. 

Taiwan Weighted

The Taiwan Weighted Index, which includes the 100 largest companies in Taiwan, registered a record single-day drop due to worsening geopolitical conditions. On Friday, the index fell 3.96%, bringing the total weekly drop to 5.83%. 

KOSPI

Amid heightened volatility in the global market, South Korea’s primary stock market index, the KOSPI, dipped to a nearly 11-week low level. On Friday, the index was down by 1.65% and concluded the week with a cumulative loss of 3.35%. 

SET Composite

Thailand’s stock market plunged massively due to the stumbling economy and global crisis. On Friday, the SET Composite was down 2.17%, and on a week-on-week basis, the index declined by 4.6%. 

Jakarta Composite

The Indonesian index, Jakarta Composite, traded lower during the week. The index was down by 1.12% on Friday and 2.74% weekly.

Shanghai Composite

The impact of the geopolitical crisis was limited to China’s premier stock market index, Shanghai Composite. The country has reported better-than-expected GDP growth of 5.3% for the first three months of 2024 on the back of improving industrial production and manufacturing activity. 

On Friday, the index was down 0.29%, concluding the week with a cumulative gain of 1.52%.

Wrapping Up

Global markets brace for further volatility as geopolitical tensions rise and inflation fears grow. Uncertainty surrounding Federal Reserve policy and growing crises in the Middle East make investors’ situation difficult. Keep informed on how these developments impact market dynamics and investing strategies in the coming weeks.

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