Global Stock Market Index: 4th August 2024 Weekly Recap

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.

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