Global Stock Market Index: 5th May ’24 Weekly Recap

Due to a lack of triggers, mixed sentiment prevailed throughout the global stock market. This week, the markets were mostly driven by corporate results, which provide support to investors who constantly monitor economic data and central bank commentary for future market direction. 

A quick look at the global market performance last week

Index	Previous Day Change (%)	WoW Change (%)
US Markets
Dow Jones	1.18	1.14
S&P 500	1.26	0.55
Nasdaq	1.95	1.39
European Markets
FTSE 100	0.50	0.90
CAC 40	0.54	-1.62
DAX	0.58	-0.88
Asian Markets
Nifty 50	-0.76	-0.57
Nikkei 225	-0.10	1.61
Straits Times	-0.12	0.39
Hang Seng	1.45	4.67
Taiwan Weighted	0.53	1.04
KOSPI	-0.26	0.76
SET Composite	0.49	0.73
Jakarta Composite	0.24	1.40
Shanghai Composite	-0.26	2.74

US Markets

The US markets are experiencing uncertainty about rate cuts due to mixed economic indicators. After last week’s inflated inflation numbers, the April non-farm payroll reported a gain of 175,000, falling short of the expected 240,000, resulting in uncertainty around the rate cuts. 

After the end of corporate earnings seasons, the market will likely remain sensitive to economic indicators and the Federal Reserve’s commentary around monetary policy. 

Dow Jones

The 30-stock-led Dow Jones Industrial Average index gained upside momentum in Friday’s session, rising by 1.18%. This helped it close the week with a cumulative gain of 1.14%. Overall, the sentiment around the index continues to be positive. 

S&P 500

Weaker non-farm payroll data, an increase in the unemployment rate, and a contraction in services sector output have stoked fears of a slowdown in the US economy. If the trend continues, this could lead to the Fed cutting rates sooner than expected. This expectation by investors helped the major indices move higher.

On Friday, the S&P500 index moved 1.26% higher, which led the index to conclude the week positively with a 0.55% gain. 

Nasdaq

Robust quarterly earnings from major tech companies helped the index to rally further during the week. On Friday, the Nasdaq 100 was up by 1.95%, which helped the index to conclude the week with a cumulative gain of 1.39%. 

European Markets

The European economy showcased signs of recovery in the first quarter of 2024, with 0.3% growth as the inflation burden eased. Of the pack, Spain was one of the leading performers with 0.7% growth. The European Central Bank is also progressing with the planned rate cuts as overall economic conditions improve. 

FTSE 100

Strong Shell and Standard Chartered earnings lifted the index to a more than five-year high, reflecting the overall positive sentiment. FTSE 100 increased by 0.50% on Friday, allowing the index to close the week with a total gain of 0.90%. 

CAC 40

France reported a GDP expansion of 0.2% in the first three months of the year due to a slight upturn in household consumption. On Friday, the index closed slightly higher by 0.54% but lost 1.62% over the week. 

DAX

Helped by construction and exports, the German economy performed better than expected, with the GDP rising 0.2% in the first quarter, against the estimate of 0.1%. On Friday, the index rose by 0.58% but concluded the week with a cumulative loss of 0.88%.

Asian Markets

Volatility prevailed in the Asian market due to a mix of global signals and domestic reasons. The two biggest Asian markets, Japan and China, were closed on Friday, resulting in low trading activity. However, the market closely followed the global signals. 

Nifty 50

Corporate earnings data continued to dominate the Indian market along with global sentiments. On Friday, the market witnessed some profit booking, resulting in the Nifty 50 slipping by 0.76%. On a week-on-week basis, the index was down by 0.57%. 

Nikkei 225

Subdued trading activity and mixed global signals during the week resulted in rangebound movement in the index. Losses in transport, marine transport, and warehousing pulled the Nikkei 225 lower on Friday, pulling the index down by 0.1%. However, the index was up by 1.61% on a week-on-week basis. 

Straits Times

Following global cues, Singapore’s primary stock market index, Strait Times, showcased mixed trading during the week. On Friday, the index was down by 0.12%, but it concluded the week on a positive note with gains of 0.39%.

Hang Seng

Hong Kong continued its winning streak for eight consecutive trading sessions. On Friday, the index rose by 1.45%, helping the index to conclude the week with a total gain of 4.67%. 

Taiwan Weighted

Taiwan’s primary stock market index, Taiwan Weighted, continued to follow the trends of its US counterparts. On Friday, the index was up by 0.53%, and on a week-on-week basis, it was up by 1.04%. 

KOSPI

Korea’s primary stock market index saw sluggish activity this week, similar to global indices. In Friday’s session, the index was down slightly by 0.26%, and on a week-on-week basis, it gained 0.76%. 

SET Composite

Continuing the positive momentum from the earlier week, SET Composite will end the week similarly. On Friday, the index was up by 0.49%, and on a week-on-week basis, it was up by 0.73%. 

Jakarta Composite

The Indonesian index, Jakarta Composite, traded positively this week. On Friday, it was up by 0.24%, which helped it close the week with a 1.4% gain. 

Shanghai Composite

Improved economic conditions have given China’s primary stock index strong growth momentum. Despite a flat performance on Friday, the index closed at 2.74% for the week. 

Wrapping Up

As we wrap up, the global stock markets experienced mixed sentiment this week, driven mainly by corporate earnings and economic indicators. Looking ahead, uncertainty regarding rate cuts in the US and recovery in the European economy are key factors to watch. While volatility persisted in Asian markets. As we navigate these dynamics, staying informed about global signals and domestic factors will be crucial in shaping market direction in the coming weeks.

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