Global Stock Market Index: 8th September 2024 Weekly Recap

The global market experienced a significant sell-off this week due to slowdown concerns and a bearish short-term outlook, which influenced investor sentiment. The US market fell the most in one week in 18 months. Meanwhile, the European market responded to the deteriorating global economic growth outlook. Furthermore, the weak corporate earnings reports and economic data from the world’s second largest economy are dragging down the global market.

Brent Crude has fallen to its lowest level in 14 months due to concerns about demand in the United States and China. It is currently trading near $70 and has dropped by nearly 7% in the past week. Gold continues to trade with a sideways bias.

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	-1.01	-2.93
S&P 500	-1.73	-4.25
Nasdaq	-2.55	-5.77
European Markets
FTSE 100	-0.74	-2.33
CAC 40	-1.08	-3.65
DAX	-1.50	-3.20
Asian Markets
Nifty 50	-1.17	-1.79
Nikkei 225	-0.73	-5.84
Straits Times	-0.12	0.34
Hang Seng	-0.07	-.2.34
Taiwan Weighted	1.15	-3.74
KOSPI	-1.23	-4.86
SET Composite	1.64	5.05
Jakarta Composite	0.53	0.67
Shanghai Composite	-0.81	-2.69

US Markets

Negative events in the economy resulted in the US stock market entering a bearish state. Weak labor market, rout in tech stocks, and job cuts all affected the market. 

The country added 142,000 jobs in August, against expectations of 160,000 jobs. Also, July’s gain was revised down, which further complicated the economic growth revival picture. 

Let’s check how the top US indices performed during the week. 

Dow Jones

Amidst the broader pullback in the market, Dow Jones dropped by 1.01% on Friday, and for the entire week, the index reported a cumulative loss of 2.93%. 

S&P 500

S&P 500 retracted the most on the weekly basis in 18 months as fears of recession rising among investors. The index dropped by 1.73% on Friday, taking the weekly loss to 4.25%. 

Nasdaq

Sell of tech stocks and growth worries made the situation worse for Nasdaq. Nvidia, one of the most valuable tech companies in the world, has dropped by close to 14% in the last five trading sessions. On Friday, the index closed 2.55% lower and on a week-on-week basis, it dropped by 5.77%. 

European Markets

Echoing the US market sentiments, European markets also traded with a bearish note during the week. Concerns of disinflation and structurally sluggish economic growth also give investors some worries.

Now, let’s look at how the top three European indexes performed during the week.

FTSE 100

Compared to European peers, and the US market, the UK stock market index, FTSE 100, fell significantly lower. On Friday, the index was down by 0.74% and on a week-on-week basis, it was down by 2.33%. 

CAC 40

Mixed economic data, and fears of slowdown in US economic growth soured investor sentiment. Paris bourse CAC 40 was down by 1.08% on Friday, taking the weekly cumulative loss to 3.65%. 

DAX

In July, German manufacturing orders increased by an unexpected 2.9%. However, industrial production in Germany fell much more than expected, by 2.4% sequentially, after rising 1.7% the previous month.

During the week, Germany’s primary stock market index, DAX, registered a total loss of 3.2%. In Friday’s session, it was down by 1.50%. 

Asian Markets

Global factors combined with back to back weak economic indicators from world’s second largest economy resulted in the market to trade with a negative bias, with few exceptions around. 

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

Nifty 50

Historically, a weak month, the Indian market continued to be under corrective pressure. During the week, Nifty 50 went past 25,000 level, hitting a new all time high level. But, failed to maintain the positive momentum. On Friday, Nifty 50 was down by 1.17%, and on a week-on-week basis, it was down by nearly 1.8%. 

Nikkei 225

Weakness in semiconducor stocks and yen strength posing a challenge for Japan’s export-oriented companies kept the market under pressure. On Friday, Nikkei 225 was down by 0.73% and on a weekly basis, the total losses for the index was nearly 6%. 

Straits Times

Bucking the trend, Singapore’s equity market traded on a flat note this week. On Friday, the index was slightly down by 0.12% and on a weekly basis, it was up by 0.34%.

Hang Seng

The Hang Seng index was flat on Friday’s session and was slightly down by 0.07%. And, on a week-on-week basis, the index reported weekly cumulative loss of 2.34%. 

Taiwan Weighted

Taiwanese stocks were higher at the close of trade on Friday. Its primary stock market index, Taiwan Weighted Index, was up by 1.15% at the close on Friday, but on a week-on-week basis, it was down by 3.74%. 

KOSPI

The South Korean equity market index witnessed a second weekly loss due to the tech sell off. On Friday, the index was down by 1.23%, and for the total week, the losses increased to 4.86%. 

SET Composite

Thailand’s equity market stood out among global indices. The index rose 1.64% on Friday, bringing its total gains for the week to 5.05%. 

Jakarta Composite

Indonesian stock market index, Jakarta Composite traded mostly sideways during the week. It was up slightly by 0.53% on Friday and on a week-on-week basis, it was up by 0.67%.

Shanghai Composite

Weak housing sales data and weak corporate earnings reports, resulted in lowering buying sentiment among investors. During the week, Shanghai Composite fell by 2.69% and on Friday, it was down by 0.81%. 

Wrapping Up

In the face of a turbulent global market, the outlook remains uncertain as economic concerns weigh heavily on investor sentiment. While short-term volatility has affected major indices, long-term prospects will depend on how economies address these challenges. As we move forward, closely watching key economic data, corporate earnings, and global developments to navigate the current market landscape will be important. Staying informed and cautious could be essential as the markets adjust to these ongoing shifts.

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