Global Stock Market Index: 22nd September 2024 Weekly Recap

The global market celebrated the Federal Reserve’s 50 bps rate cut this week, as stocks moved to new higher levels except the European market.

It was the Fed’s first rate cut in four years, and it also kicked off the rate-cutting cycle this decade. The Fed struck a balance between not fueling inflation further and boosting slowing economic growth by implementing an unusual higher percentage point rate cut. 

Overall, market sentiment is improving, and as economic conditions improve, we may see more growth in the market; however, volatility is likely to persist. 

In the last week, Brent Crude has gained some ground after sliding below $70 level. It has gained close to 5% this week. On the other hand, Gold prices also hit new higher levels and has gained nearly 5.5% this week, as risk aversion sentiment persists. 

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	0.09	1.62
S&P 500	-0.19	1.36
Nasdaq	-0.36	1.49
European Markets
FTSE 100	-1.20	-0.48
CAC 40	-1.54	-0.01
DAX	-1.51	0.69
Asian Markets
Nifty 50	1.48	1.55
Nikkei 225	1.51	2.28
Straits Times	-0.23	5.33
Hang Seng	1.34	4.59
Taiwan Weighted	0.53	5.06
KOSPI	0.48	0.49
SET Composite	-0.22	6.31
Jakarta Composite	-2.10	0.91
Shanghai Composite	0.03	-1.70

World Stock Market Index: US Markets

Profit booking on Friday’s session led to some reversal of Thursday’s gain as traders and investors assess the 50 bps rate cut by Fed, as many think this aggressive rate cut must be due to some hidden economic risks. Overall, during Friday’s session, industrial and utility stocks fell the most. 

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

Dow Jones

Dow Jones is currently trading near its record high level, looking for additional catalysts to break higher. The index traded flat on Friday, but on a weekly basis, it closed 1.62% higher.

S&P 500

S&P 500 index faced resistance as it failed to go past its record high levels. In Friday’s session, Fedex was the biggest loser of the index and was down by 14.12% on weak earnings report. While, the index lost 0.19% and on a weekly basis, it was up by 1.36%. 

Nasdaq

Nasdaq reacted to the mixed sentiments of investors and was down by 0.36% on Friday. Overall, despite the pullback, investors remain bullish in the short-to-medium. On a week-on-week basis, the index closed higher by 1.49%. 

World Stock Market Index: European Markets

The European equity market traded lower during the week, despite a major catalyst coming in from the US. Inflation and growth concerns are still hurting the European economy. Also hawkish commentary from ECB officials impacted investors’ sentiment. 

Let’s look, how different economies performed during the week. 

FTSE 100

The Bank of England (BoE) kept its key policy rate at 5.0%, which is on expected lines, as the central bank awaits more appropriate economic indicators to begin the rate-cutting cycle. 

On Friday, FTSE 100 traded lower and was down by 1.2%, wiping out the gains of the entire week. On a week-on-week basis, it was lower by 0.48%.

CAC 40

Utility and services sector stocks drove CAC 40, France’s primary stock market index, lower in Friday’s session, losing 1.54% at the end of the day. Weekly, the index closed flat. 

DAX

Losses in technology, transportation & logistics, pharmaceuticals, and healthcare stocks pulled the market lower on Friday. DAX, Germany’s primary stock market index lost 1.51% in Friday’s session, wiping out some weekly gains. On a week-on-week basis, DAX gave a positive closing of 0.69%. 

World Stock Market Index: Asian Markets

With hopes that FIIs will increase investment in emerging Asian economies following the Fed rate cut, most Asian indexes traded higher. Barring China, all other Asian economies traded with a positive bias. 

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

Nifty 50

The Nifty 50 had a volatile week, but it still managed to reach a new record high on Friday. Year to date, the index has gained nearly 19%.

On Friday, the index closed 1.48% higher, while the Nifty 50 rose 1.55% week on week.

Nikkei 225

The Japanese stock market rose over the week and Nikkei 225 closed the week 2.28% higher. On Friday, it was up by 1.51%. 

During the week, Japan’s central bank held the short-term interest rates steady at around 0.25%, which was widely expected. 

Straits Times

Singapore’s equity market was the top performing index of the week among global peers. Boosted by the Fed’s rate cut, Singapore’s primary stock market index, Straits Times rose 5.33% over the week. But, on Friday’s session the index traded slightly lower by 0.23%. 

Hang Seng

Boosted by the Fed rate cut, The Hong Kong stock market rose showcased a strong performance during the week. On Friday, the Hang Seng index added 1.34% and on a weekly basis, it registered a cumulative gain of 4.59%.

Taiwan Weighted

Following the global cues, Taiwan’s primary stock market index, Taiwan Weighted Index, put up a strong performance during the week. It was up by 0.53% at the close on Friday, and on a week-on-week basis, it was up by 5.06%. 

KOSPI

Tracking gains of the US market, South Korean shares traded higher on Friday. The country’s primary stock market index- KOSPI was up 0.48% higher, helping the index to wipe out the weekly loss. At the close of the week, it was up by 0.49%. 

SET Composite

Thai stocks traded flat in Friday’s session, and closed the day slightly lower by 0.22%. However, on a week-on-week basis, the index rose 6.31%, helping it to continue the strong bullish momentum for another week.

Jakarta Composite

Indonesian stock market index, Jakarta Composite traded lower on Friday, and was down by 2.1%. On a week-on-week basis, the index rose 0.91%

Shanghai Composite

Economic stress continued to impact the Chinese equity market during the week. August data highlighted China’s slowing economy. Industrial production increased 4.5% year on year, which was below expectations and falling short of July’s 5.1% increase due to lower commodity prices and auto sales. Retail sales rose by a less-than-expected 2.1% from a year ago, slowing from July’s 2.7% increase.

On Friday, Shanghai Composite traded flat and closed the week lower by 1.70%. 

Wrapping Up

The global stock market traded with a positive bias, but traders remain skeptical of the Fed’s larger-than-usual rate cut and are trying to figure out what it means. Looking ahead, we can expect some short-term market volatility. However, closely monitoring key economic data, central bank commentary, and global developments will provide valuable insight into near-term market direction.