Global Stock Market Index: 15th September 2024 Weekly Recap

The global market staged a strong recovery after the previous week’s sell-off while the markets prepared for the first rate cut by the Fed. The increased probability of a 50 bps rate cut also drove the market higher this week.

In the European market, weakening economic growth prompted the European Central Bank to go for another rate cut this week, resulting in the market to trade higher during the week. 

Crude oil has gained some ground during the week, but overall momentum continues to be bearish. Brent Crude is currently trading slightly above the $70 level. 

On the other hand, Gold continued its ascent reaching a new record high level. In the last one week, it has gained close to 2.5%. 

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	0.72	2.60
S&P 500	0.54	4.02
Nasdaq	0.65	5.95
European Markets
FTSE 100	0.39	0.04
CAC 40	0.40	-0.48
DAX	0.97	0.58
Asian Markets
Nifty 50	-0.13	2.44
Nikkei 225	-0.69	-1.26
Straits Times	0.17	3.52
Hang Seng	0.74	-0.51
Taiwan Weighted	0.49	3.16
KOSPI	0.13	-0.21
SET Composite	0.20	4.31
Jakarta Composite	0.18	1.81
Shanghai Composite	-0.48	-2.88

US Markets

Strong performance in the growth and technology stocks have lifted the market higher this week. The market is now awaiting a decision on the quantum of rate cut by the Fed. 

Speaking about economic indicators, the core inflation in August slightly rose to 0.3%, a tick higher than expectations. Meanwhile, the headline inflation has slowed down to 2.5% from 2.9% in July. It is the lowest level since early 2021. 

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

Dow Jones

Ahead of the Fed meeting, the index traded with a positive bias. On Friday, Dow Jones was up by 0.72%, and on a week-on-week basis, the index posted a cumulative gain of 2.60%. Boeing was the biggest loser in the index and was down by 3.69% on Friday. 

S&P 500

The 500 stocks index gained ground on improved consumer sentiment and positive investors bias. On Friday, the index was up by 0.54%, taking the weekly gain to 4.02%. 

Nasdaq

Investors bought the dip in the market, and traded higher during the week. Nvidia, which was the top loser of the index last week, is up by around 13.5% this week. On Friday, Nasdaq climbed 0.65% and on a weekly basis, the index was up by 5.95%. 

European Markets

The European Central Bank lowered interest rate for the second time this year, reducing it by 0.25% to 3.5%, which was in expected lines. Some economic indicators are signalling contraction in the Eurozone economy, and the ECB is likely to stay cautious and may look to lower borrowing costs in next few quarters

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

FTSE 100

As growth paced slowed down for the second consecutive month in July, led by contraction in manufacturing activity leading to mixed investors sentiment. 

On Friday, FTSE 100 traded slightly higher by 0.39%, helping to close the week with no gain and loss. 

CAC 40

The CAC 40, France’s primary stock market index, closed in the green on Friday due to monetary easing. It increased by 0.40% but failed to finish the week in the green. On a weekly basis, the index fell by 0.48 percent. 

DAX

Gains in the retail, chemical, and technology sectors pulled the index higher. DAX was up by 0.92% on Friday, helping the index to post gains on a weekly basis. The index closed the week higher by 0.58%.

Asian Markets

The Asian equity markets largely followed global trends as investors began to closely monitor developments related to rate cuts, which will provide short-term direction to the market. Domestic factors also played an important role. 

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

Nifty 50

Nifty 50 traded range bound during the week, but traded with a positive bias. On Friday, the market was volatile, but closed flat with a slight loss of 0.13%. On a week-on-week basis, the index was up by 2.44%. 

Nikkei 225

The Japanese stock market traded on a mixed note over the week as hawkish commentary from the Bank of Japan kept the market busy. On the economic front, the second quarter GDP number was revised lower, hurting investors sentiment.

Nikkei 225, the primary stock market index of Japan, traded lower on Friday and was down by 0.69%. On a week-on-week basis, it was down by 1.26%. 

Straits Times

Singapore’s equity market traded on a flat note this week. On Friday, the index was slightly up by 0.17% and on a weekly basis, it was up by 3.52%.

Hang Seng

The Hong Kong stock market rose on Friday on speculation of borrowing rate cuts in China. The Hang Seng index added 0.74% on Friday. But, on a weekly basis, it was down by 0.51%.

Taiwan Weighted

Strength in the semiconductor and electronic sectors helped the Taiwanese market to trade with a positive bias. Its primary stock market index, Taiwan Weighted Index, was up by 0.49% at the close on Friday, and on a week-on-week basis, it was up by 3.16%. 

KOSPI

After two weeks of consecutive sell off in the Korean market, the momentum of the market was sideways. On Friday, KOSPI was up by 0.13%, but on a week-on-week basis, the index was slightly down by 0.21%. 

SET Composite

For another week, Thailand’s equity market traded with a bullish momentum. SET Composite rose 0.20% on Friday, bringing its total gains for the week to 4.31%. 

Jakarta Composite

Indonesian stock market index, Jakarta Composite traded with a positive bias during the week. It was slightly up by 0.18% on Friday and on a week-on-week basis, it was up by 1.81%.

Shanghai Composite

Chinese stocks fell on weak inflation data, raising concerns about a downward price-wage spiral weighing on the economy. Deflationary concerns and failure to spur the economy is keeping Chinese equity under pressure. On Friday, Shanghai Composite was down by 0.48%, and on a week-on-week basis, the index lost 2.88% value. 

Wrapping Up

The global market has recovered some ground following the previous week’s sell-off. However, investors remain cautious about the rate cuts. Looking ahead, we can expect some short-term volatility in the market. However, closely following key economic data and global development will provide insight into near-term market direction. Staying informed and cautious may be necessary as the markets adjust to these ongoing shifts.

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