Key Global Events that Can Influence the Stock Market This Week!

The global market was relatively quiet compared to the previous week and was also the final full week of the year. It was quite a volatile year for the global market with concerns surrounding the global growth slowdown affected investor sentiment. 

If we look at the overall performance of different regions, the US market performed exceptionally well during the year despite the uncertainties. Nasdaq 225 delivered a year-to-date returns of nearly 38% and S&P 500 index delivered nearly about 26% returns. 

The European markets too witnessed extreme volatility during the year. Political unrest in France and demand slowdown in Europe affected the market sentiment. The UK economy showcased some resilience, but failed to post strong gains. French Index- CAC is closing the year in negative down by 2.33% year-to-date. UK’s FTSE and Germany’s DAX posted 5.55% and 19.17% year-to-date returns respectively. 

Speaking about the Asian markets, India’s Nifty 50 is up by nearly 10% this year, Japan’s Nikkei 225 is up by 21%, and Taiwan Weighted is the top performer with nearly 31% gains. 

China, which is reeling from economic slowdown, showcased mixed performance during the year. Shanghai Composite is up by nearly 15% and Hang Seng is up by 20%. 

What Happened in the Stock Market Globally?

• The Indian stock market was volatile and recorded a minor pullback during the week, with the Nifty 50 down by 0.41% at the end of the week. 

• In the US, the consumer confidence index fell in December to 104.7 from 112.8 in November. The durable goods order also declined for the fourth month in a row in November, against expectation of a marginal increase of 0.2%. 
• New home sales in the US in November also came in slightly below consensus forecasts; with adjusted annual sales of 664,000 compared to the expectations for 670,000. Although, the November figure is a substantial improvement over the month prior.

• The UK’s Office for National Statistics lowered its final estimate for third-quarter economic growth to 0.0% from 0.1%. It also reduced its second-quarter GDP number to 0.4% from 0.5%.
  
• Japan’s consumer price index (CPI) rose above-forecast to 3% year-on-year in December, up from 2.6% in November. Industrial production in November fell to 2.3%, compared to a 2.8% rise in October. There was an expectation of a 3.5% fall. Retail sales rose 1.8% in November and rose from October’s 0.1% increase.
  
• In China, profits at industrial enterprises declined 7.3% in November compared to the previous year, as per National Bureau of Statistics. November’s reduction was the fourth consecutive monthly decline.

Key Economic Events to Watch in Global Markets in the Upcoming Week

Because of the New Year’s holiday, there are fewer major economic events scheduled for next week.

• China will release its Manufacturing PMI on December 30th, 2024 and is expected to remain unchanged at 50.3.
  
• The US will release its Manufacturing PMI on January 2nd, 2025, and is expected to decline from 49.7 to 48.3. 

As 2024 comes to close, changing global economic forces will continue to impact market sentiment. As markets navigate these challenges, next economic data releases along with the Fed commentary will be closely monitored for cues about the way forward. As the world approaches 2025, investors will need to monitor global volatility and make strategic adjustments on a constant basis.

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