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Global Stock Market Index: 4th Feb ’24 Weekly Recap

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Global Market Recap - 4th Feb
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The global market is experiencing a risk-on environment, marked by the recovery in major stock indices, particularly in large tech stocks. The easing inflationary pressures in both the US and Europe have also reignited investor optimism for potential rate cuts. Notably, in the Asian market, KOSPI stood out as the week’s top performer, whereas the Shanghai Composite Index faced the most significant losses compared to its global peers.

A snapshot of the major world market indices this week

IndexPrevious Day Change (%)WoW Change (%)
US Markets
Dow Jones0.481.57
S&P 5001.191.50
Nasdaq1.811.19
European Markets
FTSE-0.09-0.26
CAC0.05-0.55
DAX0.35-0.25
Asian Markets
Nifty 50 0.721.90
Nikkei 2250.411.14
Straits Times1.150.64
Hang Seng-0.21-2.62
Taiwan Weighted0.510.36
KOSPI2.795.52
SET Composite1.161.16
Jakarta Composite0.511.42
Shanghai Composite-1.49-6.19
Source: Moneycontrol

The positive momentum in the US markets persisted from the previous week, ending the week favorably. Strong macroeconomic data, robust performance in technology stocks, and a rebound in energy sector earnings contributed to the positive market sentiment. Despite Fed Chair Jerome Powell suggesting a cautious stance on rate reductions, with a potential delay until later this year, the market showed limited reaction.

Dow Jones

Dow Jones ended the week on a higher note, with support from large tech stocks, resulting in a 1.57% weekly gain. On Friday, the index rose by 0.48%. 

S&P 500

In response to the solid non-farm payroll data and other macro indicators, the index, which tracks America’s largest companies, surged by 1.19% on Friday. The week closed with a cumulative gain of 1.50%. 

Nasdaq

The tech-heavy index showcased a strong performance during the week, with Nasdaq testing new highs as Meta and Amazon stocks witnessed significant rallies. Meta soared by over 20% on Friday following robust earnings and the historic announcement of its first-ever cash dividend. Nasdaq surged by 1.81% during Friday’s session, concluding the week with an overall gain of 1.19%. 

European Markets

European markets displayed a varied performance over the week, influenced by diverse factors. Corporate earnings propelled individual stock performance, while central banks’ decisions to maintain interest rates amidst inflation nearing targets and a decline in oil and gas prices impacted overall market sentiments.

FTSE

FTSE, the UK’s primary index, showcased mixed performance during the week, concluding with a cumulative loss of 0.26%. The Bank of England’s decision to keep the interest rate at 5.25% in its battle against inflation played a significant role. Although inflation has decreased from a high of 11% in 2022 to 4% in December 2023, which is helping to boost investors’ confidence, it is still higher than the Bank of England’s target of 2%.

CAC

CAC, the French stock market index, traded flat during Friday’s session, reporting a minor gain of 0.05%; however, it ended the week with a loss of 0.55%, showing mixed performance similar to its European counterparts. 

DAX

On Friday’s session, the market was stable primarily and closed with a gain of 0.35%. Eurozone inflation meeting economists’ prediction, flurry of corporate earnings, and commentary from major central banks impacted market movement throughout the week. On a week-on-week basis, DAX was down by 0.25%.

The Asian market was largely positive during the week, barring the Hong Kong and Shanghai markets, which are affected by concerns surrounding the slowdown in China’s economy. As per the IMF forecast, the Chinese economy faces high uncertainty in 2024, and demand for new housing in China is set to drop by 50% over the next decade. 

Nifty 50

On the back of a robust macro outlook, the government reduced the fiscal deficit estimate by 0.1% in the current fiscal year to 5.8% and 5.1% in FY25; substantial tax collection and steady corporate earnings helped to push the index to a record high. During Friday’s session, Nifty 50 hit an all-time high of 22,126 points. On a week-on-week basis, Nifty 50 gained by 1.9%. 

Nikkei 225

Nikkei 225, Japan’s primary stock index, continues to trade positively, holding above the psychologically important 36,000 level, which it broke last month after 34 years. The index was up by 0.41% on Friday, concluding the week with cumulative gains of 1.14%. 

Straits Times 

Tracking the Wall Street gains, Singapore’s primary index, Straits Times, surged by 1.15% on Friday, helping the index recover the losses during the week, and closed the week with a cumulative gain of 0.64%. 

Hang Seng

Persistently weak macroeconomic data and the ongoing slowdown in the Chinese economy have continued to weigh on Hang Seng, leading to a consistent decline throughout the week. The index recorded a 0.21% drop on Friday, accumulating a weekly loss of 2.62%.

Taiwan Weighted

Recovery in tech has helped Taiwan’s economy grow at the fastest rate in two years and is assisting its stock market rise. On Friday, Taiwan Weighted rose by 0.51% and posted a weekly gain of 0.36%. 

KOSPI

As South Korea is expected to beat expectations for growth in Q4, it has helped its stock market to post record gains during the week. On Friday, KOSPI surged by 2.79%, resulting in a weekly gain of 5.52%.

SET Composite

Thailand’s primary index, SET Composite, gained 1.16% on Friday; on a week-on-week basis, it posted gains of 1.16%.

Jakarta Composite

This Indonesian index traded positively during the week, reporting a weekly gain of 1.42%. In Friday’s session, the index gained by 0.51%. 

Shanghai Composite

China’s benchmark index, the Shanghai Composite, fell by 1.49% on Friday, and on a week-on-week basis, the index fell by 6.19%.

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Wrapping Up

Amidst an economic rebound observed in the US, Europe, and Asian markets, along with a decreasing inflation level, there is growing optimism for potential rate cuts. The overall investor sentiment remains positive. However, the challenging geopolitical scenario can act as a spoiler, and the risk of a spike in energy prices has the potential to impact investor confidence.

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