Global Stock Market Index: 25th August 2024 Weekly Recap

The global stock market gained ground on Powell’s dovish comment in the annual Jackson Hole economic conference. Fed Chair Jerome Powell categorically indicated that time has come for the Federal Reserve to start adjusting interest rates anytime in the near future, while inflation risk is subsiding. Positive economic signs from the Eurozone area supported the market.

Gold continued its bullish momentum climbing 5.16% due to risk aversion sentiment. While crude oil continued to trade weak. 

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	1.14	1.27
S&P 500	1.15	1.45
Nasdaq	1.47	1.40
European Markets
FTSE 100	0.48	0.20
CAC 40	0.70	1.71
DAX	0.75	1.70
Asian Markets
Nifty 50	0.04	0.97
Nikkei 225	0.40	0.79
Straits Times	0.43	1.05
Hang Seng	-0.16	1.04
Taiwan Weighted	0.04	-0.86
KOSPI	-0.22	0.17
SET Composite	1.02	3.98
Jakarta Composite	0.74	1.51
Shanghai Composite	0.20	-0.87

US Markets

Signals of easing monetary policy boosted the stock market indices towards new high levels driven by tech sector gains and positive sentiment surrounding the improving economic indicators. Let’s see how the top US indices performed during the week. 

Dow Jones

Dow Jones closed on a high note for the second consecutive week driven by a broad rally in the equity markets. On Friday, Dow Jones was up by 1.14%, taking the weekly gains to 1.27%. 

S&P 500

Dovish Fed Chair comment and strong new home sales report for July sent the 500 stock index higher. On Friday, the index gained 1.15% and on a week-on-week basis, it was up by 1.45%. 

Nasdaq

Tech stocks played a significant role in the market gains on Friday. Tech-heavy Nasdaq traded higher and was up by 1.47% on Friday. On a week-on-week basis, the index gained 1.40%. 

European Markets

The European market had a solid week of trading because of improving economic indicators, encouraging central bank commentary and improved mood in the US market.

Let’s look at how the top three European indexes performed during the week.

FTSE 100

The UK continued to be the bright spot among major European countries. Its Purchasing Managing Index (PMI) accelerated to 53.4 in August, up from 52.8 in last month, indicating strong growth momentum in the economy. 

FTSE 100 traded with a positive bias during the week and was up by 0.48% on Friday. On a weekly basis, the index concluded the week with gains of 0.20%. 

CAC 40

The French economy benefited from the Olympics in Paris. August saw a notable improvement in services activity, offsetting the continued decline in manufacturing. The S&P Global-compiled HCOB flash PMI increased from 50.1 in July to a 27-month high of 55 in August. 

CAC 40 was up by 0.70% on Friday, and on a weekly basis, it was up by 1.71%. 

DAX

The German economy continues to be weak due to its sluggish recovery and poor international demand for exports, continuing to affect investor sentiment. 

However, strength in the broader market helped to push the German stock market index higher. On Friday, DAX traded higher and closed 0.75% higher and on a week-on-week basis, it gained 1.70% higher.

Asian Markets

Supportive economic data and bullish investor sentiment helped the Asian stock market indices to trade with a positive bias during the week. However, domestic factors were also in play limiting the upside compared to the US and UK indices. 

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

Nifty 50

It was a volatile week for the Indian market, and Nifty 50 traded mostly flat on Friday and was slightly up by 0.04%. On a week on week basis, the index was up by 0.97%. 

Nikkei 225

The Japanese stock market recovered during the course of the week, posting slight gains, after the initial shock at the beginning of the month following the second rate hike. 

On Friday, Nikkei 225 was up by 0.40% and it closed 0.79% higher at the close of the week. 

Straits Times

Following the broader market cues, Singapore’s equity market traded higher during the week. It rose 0.43% on Friday, and on a weekly basis, it was up by 1.05% higher.

Hang Seng

Stocks in Hong Kong stock market traded lower as the light economic calendar and cautious outlook ahead of Fed Chair Powell’s Jackson Hole speech kept buyers on the sidelines. On Friday, Hang Seng fell by 0.16%, but on a week-on-week basis, the index rose 1.04%. 

Taiwan Weighted

Taiwanese stock market index, Taiwan Weighted Index was down 0.86% over the week despite trading with a positive bias on Friday, when it closed marginally higher at 0.04%. 

KOSPI

Profit booking and cautious outlook ahead of the Powell’s Jackson Hole conference kept the market anxious. The South Korean stock market index, KOSPI, was down by 0.22%% on Friday, but closed the week 0.17% higher. 

SET Composite

Bucking the overall trend, Thailand’s equity market index traded on a bullish note during the week. SET Composite was up by 1.02% on Friday, and on a week-on-week basis, the total gain of the index was 3.98%.

Jakarta Composite

Following the global cues, Indonesian stock market index, Jakarta Composite was up by 0.74% on Friday and on a week-on-week basis, it was up by 1.51%.

Shanghai Composite

Persisent slowdown in the economy in the world’s second largest economy continues to impact investor sentiment. Benchmark index Shanghai Composite Index gained 0.2% on Friday, and on a week-on-week basis, it fell by 0.87%. 

Wrapping Up

Looking ahead, the current environment presents both opportunities and challenges. The Fed’s dovish stance and improving economic indicators in the Eurozone suggest potential for continued gains in equity markets. However, risk aversion, reflected in gold’s bullish momentum, and uncertainty in crude oil prices indicate that volatility could persist. Investors should remain cautious, keeping a close watch on central bank policies and global economic trends.

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