On April 2, 2025, President Donald Trump is set to implement a comprehensive tariff plan, dubbed “Liberation Day,” aiming to recalibrate the United States’ trade relationships by imposing “reciprocal” tariffs on imports from all nations. This initiative seeks to match the tariffs other countries levy on U.S. exports, potentially impacting various industries and altering global trade dynamics.​

Understanding ‘Liberation Day’ Tariffs

The “Liberation Day” tariffs significantly shift U.S. trade policy, emphasizing reciprocity. As previously speculated, President Trump has articulated that these tariffs will apply universally, not limited to the 10 to 15 countries with the largest trade imbalances. 

The administration’s objective is to protect domestic industries from what it perceives as unfair competition and to leverage better trade terms for the U.S. ​ 

To better understand the context and potential implications, let’s examine the U.S. trade balances with key regions and countries, highlighting areas where these tariffs might have the most pronounced effects.​

U.S. Trade Balances with Key Regions and Countries (2024)

The U.S. has maintained varying trade balances across different regions and countries, with notable deficits in certain areas:​

• Total Trade Balance: In 2024, the U.S. faced a substantial trade deficit of approximately $1.2 trillion, with total exports amounting to $2.07 trillion and imports at $3.27 trillion. ​
• Asia: The trade deficit with Asia was significant, totaling around $756.6 billion. Exports to Asia were valued at $600.3 billion, while imports reached $1.36 trillion.
• Europe: The U.S. experienced a trade deficit of approximately $267.2 billion with Europe, exporting goods worth $503.6 billion against imports of $770.8 billion. 
• North America: Trade with North American partners resulted in a deficit of about $235.1 billion, with exports at $683.4 billion and imports at $918.5 billion. ​Census.gov
  
• China: The trade deficit with China stood at $70.3 billion in the third quarter of 2024 alone, with exports of $50.3 billion and imports of $120.6 billion. ​Bureau of Economic Analysis
  
• Germany: A notable trade deficit of $22.9 billion was recorded with Germany during the same period, with exports totaling $14.2 billion and imports at $37.1 billion. ​
• Mexico: The U.S. had a trade deficit of $44.6 billion, with Mexico in the third quarter of 2024, with exports of $81.5 billion and imports of $126.1 billion. ​Bureau of Economic Analysis

Potential Impact on Global Growth

Introducing these tariffs raises concerns about a potential slowdown in global economic growth. By increasing the cost of imported goods, these measures could lead to higher prices for consumers and disrupt international supply chains. 

Economists warn that such protectionist policies may dampen domestic and international economic expansion. For instance, a report from Goldman Sachs increased the likelihood of a U.S. recession to 35%, up from 20% previously, due to President Trump’s tariff policies. ​news

Reciprocal Measures by Affected Countries

In response to the U.S. tariffs, several countries are contemplating retaliatory measures:​

• European Union: The EU is considering imposing tariffs on American products, including motorcycles and agricultural goods, to counteract U.S. duties.​
  
• United Kingdom: Prime Minister Keir Starmer has opted against immediate retaliatory tariffs, aiming to avoid escalating trade tensions and to pursue continued negotiations for a trade agreement with the U.S.​
  
• Canada and Mexico: These nations are exploring a combination of retaliatory tariffs and diplomatic negotiations to address the new U.S. trade barriers.​
  

Effects on Markets and Investors

The anticipation of “Liberation Day” tariffs has introduced volatility into financial markets:​

• Stock Markets: Uncertainty surrounding trade policies has led to fluctuations in stock prices, particularly affecting companies with significant international exposure. For example, the Australian stock market saw substantial declines, with $38 billion wiped off its value amid global market slumps triggered by tariff concerns. ​news
  
• Currency Markets: Potential trade wars may influence currency valuations as investors seek safe-haven assets amid global economic uncertainty.​
  
• Investment Strategies: Investors may need to reassess portfolios, considering increased risks in sectors vulnerable to tariffs, such as automotive and manufacturing.​

Implications for Consumers and Businesses

The tariffs are expected to have tangible effects on both consumers and businesses:​

• Consumers: Higher import duties, from electronics to automobiles, may increase product prices, affecting household budgets. Financial experts estimate that the average cost of an imported vehicle could rise by $5,000 to $10,000 due to the 25% tariff on foreign-made cars. ​New York Post
  
• Businesses: Companies reliant on imported materials could face elevated production costs, potentially reducing profit margins or price hikes for end products. For instance, U.S. manufacturers using imported steel and aluminum may experience higher input costs, affecting competitiveness.​ 

Imposing tariffs on imports from countries like China and Mexico may increase prices for electronics, automobiles, and household items, directly impacting American consumers. 

Conclusion

As “Liberation Day” approaches, the global economic landscape stands at a crossroads. While the intended goal of the tariffs is to bolster domestic industries and achieve fairer trade terms, the broader implications suggest a complex interplay of economic consequences. 

Stakeholders worldwide must navigate this evolving environment, balancing national interests with the overarching benefits of global trade cooperation.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

It was relatively quiet week for the global stock market, which was expected, on the account of lower investor participation and shortened trading week.

2024 was quite volatile but key markets managed to close the year on high note.

Looking at the overall performance of key stock markets and regions- US market performed better than other despite growth slowdown and uncertainty concerns.

It will be a crucial year for the US market, as President Trump will resume his second term of presidency and investors are closely following his policy moves. 

At the end of the week, Nasdaq 225 closed 0.52% lower, while the broader index S&P 500 was down by 0.48%.

Major European stock indexes traded on a mixed note through the week. Germany’s DAX closed the week 2.75% higher. While France’s CAC 40 Index fell 0.99%. The UK’s FTSE 100 Index gained 0.91%. 

Speaking about the Asian markets, India’s Nifty 50 is up by 1.05% in the last week. Japan’s Nikkei 225 is up by 1.77%.

China stock market declined as weaker than expected manufacturing data impacted investors sentiment. Shanghai Composite is down by nearly 5.55% and Hang Seng is down by 1.64%. 

What Happened in the Stock Market Globally?

It was a holiday shortened week, and stock market across the globe witnessed lower investor participation.

• The Indian stock market started the year on a high. Nifty 50 reclaimed the 24,000 level and closed the week higher by 1.05%. In 2024, the index closed 8.75% higher, marking ninth consecutive year of positive gains 

• The US manufacturing PMI jumped to a nine-month high of 49.3 in December 2024, the best reading since March 2024 and an increase from 48.4 in November. Manufacturing makes for 10.3% of the economy.

• The UK house prices rose most in December, since 2022, according to the Nationwide Building Society. Its house price index rose 0.7% in December from November, exceeding a forecast for a 0.1% increase and on a y-oy basis, the house price index increased 4.7%.

• Japan Manufacturing activity contracted for a sixth straight month in a row December. The manufacturing PMI reading was 49.6. A level below 50 shows contraction.

• China’s factory activity increased in December, although at a slower-than-expected pace. The Caixin/S&P Global manufacturing PMI nudged down to 50.5 in December from 51.5 the previous month.

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

• On January 6th, the US will release its December 2024 Services PMI and is expected to rise to 58.5 from 56.1.

• On January 7th, the Euro region will release its CPI (inflation) numbers for December 2024. It was 2.2% in the previous month. 

• On January 8th, Germany will release its November factory orders and retail sales data. Also, on this day, the US will release its crude oil inventories data that may affect the crude prices. 

• On January 8th, the Federal Open Market Committee (FOMC) will release its meeting minutes that may impact market moves. 

• On January 10th, the US will release its non-farm payroll data and unemployment rate for the month of December 2024.

The global market started 2025 with a positive note, but the changing global economic forces will continue to impact investor sentiment. As markets navigate these challenges, next set of key economic data, central bank commentary, corporate earnings growth will be closely monitored for cues about the way forward. As usual, the market is expected to remain volatile in 2025 investors need to make strategic adjustments on a constant basis.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

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.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

World Stock Market Index US Markets

The US market led the gains on the strength of positive economic indicators, but the global market had a mixed week overall. All three major US indexes—Dow Jones, S&P 500, and Nasdaq—closed the week higher. 

In the US, personal income increased by 0.6% in October—a little more than anticipated—and consumer sentiment remained solid. Additionally, pending home sales exceeded forecasts of a decrease, increasing by 2% in October. However, the manufacturing sector appeared to remain in a slump during October. 

Geopolitical factors were also major drivers of sentiment during the week, as the tariff war is expected to get worse during President Trump’s tenure. 

World Stock Market Index European Markets

On the other hand, the accelerated pace of inflation for the second consecutive month in the Eurozone area is impacting retail sales. In Germany, retail sales fell 1.5% sequentially in October, much exceeding the predicted 0.5% drop. Also, in the UK, retail sales volumes fell sharper than estimated in November, and the retail sector’s confidence index was the lowest in two years.

This can result in the European Central Bank delaying the lowering of borrowing costs next month to support growth. 

World Stock Market Index Asian Markets

The lack of any specific triggers caused major Asian indexes to trade on a volatile note. In China, increasing hopes of more stimulus packages to spur growth are helping to offset the tariff concerns. Also, the rising dollar is a major concern, as economies in Asia depend heavily on dollars for their crude purchases, affecting the balance of payment. 

In India, slower-than-expected GDP growth in the second quarter of FY25 dampened the mood. The GDP growth of 5.4% during the quarter was the slowest in the last seven quarters and below the RBI estimate of 7%. 

Top Highlights of the Global Stock Market This Week

• The US stock market concluded November on a strong note, posting its greatest monthly gains this year. Dow Jones and S&P 500 indexes gained 6.57% and 3.76%, respectively.
  
• The US Black Friday sales on November 29th is showing strong online sales despite the inflation concerns. Data from the National Retail Federation shows, it is expecting a record 183.4 million people to make online purchases, slightly up from 182 million in 2023. Adobe Analytics said US consumers had spent $7.9 billion online as of Friday, and expected the final tally to exceed $11 billion at the end of the weekend. 

• Inflation in the Eurozone area rose to 2.3% in November, above the European Central Bank’s target of 2%. 

• Despite the challenges in the German economy due to the slowing down of the manufacturing sector, the unemployment rate was 5.9% in November. The number of unemployed people during the month rose by 7,000 to reach 2.86 million, a smaller-than-expected increase of 20,000. 

• Canada’s GDP growth in the July-September quarter slowed to 1%, further paving the way for rate cuts. Additionally, Trump’s tariff plan on Canada can derail the country’s future growth plan.

• The Bank of England has issued significant warnings about rising government debt, which could threaten financial stability and increase global borrowing costs. The Office for Budget Responsibility anticipated that the UK national debt would increase from £2.7 trillion at the end of the previous fiscal year to £3.4 trillion by the end of the decade.
  
• The Russian economy is showing signs of weakness and instability. Its currency, the Ruble, plunged to its lowest level since the early days of the Ukraine invasion in March 2022.
  
• China’s manufacturing PMI crossed the 50 mark in November for the first time since April. It is the second consecutive month of expansion, and a series of recent stimulus measures are gradually showing their effect.
  
  However, Morgan Stanley analysts predict a volatile 2025 for China’s stock market, citing lower earnings, geopolitical uncertainties, and probable tariffs.
  
• India’s GDP growth slowed to 5.4% in the July-September quarter, below the expected line, further putting pressure on the RBI growth forecast of 7.2% in FY25. In the April-June quarter, the GDP growth was 6.2%. 

Key Events to Watch in Global Markets in the Upcoming Week

• The Federal Open Market Committee (FOMC) will release its meeting minutes, possibly providing insights into the Federal Reserve’s plan for future interest rate decisions and the December rate cut. 

• Another important dataset to monitor next week is the US non-farm payroll data, which will be crucial to understanding the state of the US economy and labor market. 

• The European Central Bank’s policy decisions and statements will be closely watched for any changes in monetary policy amidst rising inflation levels above the target and increasing risk of recession in the region.

• Investors will also focus on China’s export and import data, which can give clues about global demand and domestic consumption. 

• The OPEC + meeting on crude production and supply cuts is scheduled for December 5th. The group will discuss whether to continue increasing production by 180,000 barrels a day in January amidst the softening crude price. Brent Crude is trading around the $70 level and showing signs of weakness.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

The global stock market recovered some of the previous week’s losses despite the uncertainty surrounding incoming President Trump’s administrative policies. Escalating geopolitical tension stemming from Russia-Ukraine added to the uncertainty. 

On the other hand, the market is discussing the strength of the US dollar. In the last 30 days, the Dollar Index strengthened by 3.1%. If the momentum continues, it could hurt emerging economies. 

Brent Crude continued to trade under downward pressure, hovering around the $70 level. Gold, which was going strong through 2024, now faces some selling pressure and traded flat during the week. 

Let’s look at how the major stock market indices performed this week.

World Stock Market Index US Markets

The US market displayed strength during the week, supported by better-than-expected PMI data. Both the manufacturing and services sector PMIs reported were up during the month. 

Also, Nvidia’s third-quarter result appeared to satisfy investors, driving optimism in the market. Google parent Alphabet’s share seemed to be under pressure as the Department of Justice proposed breaking up the internet search giant to maintain transparency and fair gameplay. 

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

Dow Jones

The rally in Boeing shares supported the Dow Jones 30 stock index, which rose nearly 1% on Friday and posted a total gain of 1.96% week-on-week. 

S&P 500

Better economic data and improved consumer sentiment reports supported the S&P 500 index higher during the week. On Friday, the index was up by 0.35%, and on a weekly basis, it was up by 1.68%.

Nasdaq

The Nasdaq was flat on Friday due to selling in Nvidia and Alphabet. At the end of Friday, it was up 0.20%, while the index concluded 1.77% higher on a weekly basis. 

World Stock Market Index European Markets

Rising hopes of another rate cut by the European Central Bank (ECB) in December after multiple economic indicators signaled a deterioration in the economic outlook drove the market higher. 

The HCOB Flash Eurozone Composite PMI Output Index fell to a 10-month low of 48.1 in October, as growth in the manufacturing sector contracted and the services sector struggled, indicating a recession-like situation. 

Now, let’s look at how different economies performed during the week. 

FTSE 100

The Weaker Pound drove the UK market higher during the week. The decline in the currency is beneficial for the UK economy as most of the large companies are export-driven, and the dollar’s strength could aid revenue growth. 

On Friday, FTSE 100 was up by 1.37%, and on a week-on-week basis, it was up by 1.17%.

CAC 40

The Paris stock index, CAC 40, closed higher on Friday by 0.57%, supported by gains in healthcare stocks, consumer goods, and technology. However, the index was down by 1.56% on a weekly basis.

DAX

Increasing geopolitical risks and deteriorating economic conditions in Europe resulted in a weak stock market index in Germany, Europe’s largest economy. On Friday, the DAX was up by 0.91%, but on a week-on-week basis, it was down by 0.26%. 

World Stock Market Index Asian Markets

Asian stocks continued to trade volatile during the week, as mixed signals from the global market kept investors looking for signals. Uncertainty around the Chinese economic revival is also adding to the volatility.  

Now, look at how the major stock market index performed during the week.

Nifty 50

Despite the volatility arising from the sell-off in Adani Group stocks, the Indian stock market displayed resilience. On Friday, the Nifty 50 closed 2.39% higher, and on a week-on-week basis, it ended 1.86% higher. 

Nikkei 225

Gains in gas and water, transportation equipment, and banking stocks led to 0.67% gains in Nikkei 225. However, heightened geopolitical tensions and uncertainty around Trump administration policies dented investors’ risk appetite. On a weekly basis, the index was down by 2.69%. 

Straits Times

Singapore’s primary stock market index, Straits Times, traded positively during the week. During Friday’s session, it was up by 0.18%, and on a week-on-week basis, it closed 1.94% higher. 

Hang Seng

Chinese stocks fell as fears about the impending Trump government policies curbed risk appetites. Officials in Beijing have hinted at additional stimulus measures in the near term, including the possibility of lowering the reserve requirement ratio for domestic banks to boost growth. 

In Hong Kong, the benchmark Hang Seng Index declined 1.93% on Friday; on a week-on-week basis, it fell sharply by 8.22%. 

Taiwan Weighted

Following the global cues, Taiwan’s primary stock market index, the Taiwan Weighted Index, traded positively during Friday’s session. It was up by 1.52% at the end of Friday’s session. On a week-on-week basis, it closed 2.16% higher. 

KOSPI

Positive trade data lifted South Korean stocks on Friday, closing with 0.82% gains. However, the index closed lower by 2.56% due to higher volatility during the week. 

SET Composite

Thai stocks traded flat On Friday, with the index rising slightly by 0.40%. And, on a weekly basis, the index lost 1.59%

Jakarta Composite

The Indonesian stock market index, Jakarta Composite, was up 0.77% on Friday, helping it recover some of its losses during the week. It closed 0.67% lower. 

Shanghai Composite

Heightened uncertainty around the Chinese economy caused the Shanghai Composite to trade lower by 3.16% on Friday. On a week-on-week basis, the index was down by 5.86%. 

Wrapping Up

This week, global stock markets showed mixed trends. US markets gained strength thanks to good economic data and Nvidia’s positive results. In Europe, weak economic indicators raised fears of a slowdown, while Asian markets remained volatile due to Chinese economic concerns and geopolitical tensions.

Amid these evolving dynamics, investors should remain cautious as they navigate these global uncertainties and sector-specific challenges.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

The news of China’s stimulus package to shore up the falling economy boosted the global stock market. Also, the outperformance in technology, chemical, and material stocks supported the market to move higher on expectations of a rebound in Chinese demand.

Crude Oil has found some support and was steady during the week. Brent Crude gained close to 1% during the week and is trading close to $75 level. On the other hand, Gold is continuing to experience upward pressure in prices and has gained 3% during the week, taking the total yearly gains to close to 30%. 

Now, let’s take a look at how the major stock market indices did this week.

World Stock Market Index US Markets

The US stock market indices were steady during the week and gained slightly during the week. Cooling inflation data has once again sparked optimism for further rate cuts and accommodative monetary policy. However, the news of falling consumer confidence in August resulted in a bit of volatility in the market. 

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

Dow Jones

Supported by cooling inflation data, the Dow Jones Industrial Average hit a new record high level on Friday. It was up by 0.33% at the end of the day, and on a weekly basis, the index was up by 0.59%. 

S&P 500

The release of consumer confidence and weaker-than-expected personal spending and personal income reports put some pressure on the S & P 500 index on Friday. It closed 0.13% lower. On a week-on-week basis, the index gained 0.62%, maintaining the positive momentum.  

Nasdaq

Profit booking in top tech stocks like Nvidia, AMD, and Micron pulled the index down on Friday and closed 0.39% lower. But, on a week-on-week basis, the index was up by 1%. 

World Stock Market Index European Markets

Following the global cues, the European stock market traded with a positive bias. However, the fading of the Olympic effect has resulted in shrinking of business activity in the Eurozone area in September. Manufacturing activity is contracting at a faster pace, which is a cause of worry for investors. 

Now, let’s look, how different economies performed during the week. 

FTSE 100

The UK economy is showing signs of improvement as Private sector activity has now expanded for the 11th month in running. Inflation has now eased across the economy to a 42-month low level. On Friday, FTSE 100 traded sideways, but was steady. It increased by 0.43% and on a week-on-week basis, it was up by 0.62%.

CAC 40

Gains in consumer goods, technology, and consumer services drove France’s primary stock market index, CAC 40 higher during the week. In Friday’s session, it was up by 0.64% and on a weekly basis, the index was up by 3.88%. 

DAX

German business activity has declined the most in seven months as business morale and consumer confidence remained low in September, adding to signs that the economy might be entering a recession. 

However, the German stock market traded on a positive note, following the global cues. On Friday, DAX was up by 1.21% and on a week-on-week basis, the index was up by close to 5%. 

World Stock Market Index Asian Markets

The leading Asian stock market indices were fuelled by rising expectations of accomodative monetary policy from the Fed and China’s economic stimulus. Also, domestic factors contributed to the rising market. 

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

Nifty 50

The Nifty 50 continues to trade with a positive bias, and once again reached a new all-time high level. On Friday, the index closed slightly lower by 0.16% on account of profit booking from the higher level. But, on a week-on-week basis, Nifty 50 gave a positive closing at 1.09%.

Nikkei 225

Supportive global factors, and dovish Bank of Japan are providing favorable support to the Japanese stock market. Nikkei 225 closed 2.27% higher at the close on Friday, and the week and the index closed 7.51% higher. 

Straits Times

Singapore’s primary stock market index, Straits Times traded sideways during Friday’s session and was slightly down by 0.25% and on a week-on-week basis, it closed higher by 3.84%.

Hang Seng

Chinese stocks surged after Beijing announced the economic stimulus package. The stocks in Hong Kong stock market also benefited. On Friday, Hang Seng index was up by 3.43%, taking the weekly cumulative gains to 18.19%. 

Taiwan Weighted

Taiwan’s primary stock market index, Taiwan Weighted Index, traded flat on Friday, and was slightly down by 0.16%. On a week-on-week basis, it was up by 8.20%. 

KOSPI

Profit booking in South Korean shares led the country’s primary stock market index, KOSPI, to trade lower, down 0.82%. However, it closed the week on a positive note, up 2.67%. 

SET Composite

Thai stocks traded flat on Friday, closing down 0.34%. However, on a weekly basis, the index rose 6.20%, allowing it to maintain its strong bullish momentum for another week.

Jakarta Composite

The Indonesian stock market index, Jakarta Composite, fell 0.62% on Friday. On a weekly basis, the index rose 0.31%.

Shanghai Composite

The Shanghai Composite Index climbed 10.89% at the end of the week, marking the best ever performance by the index in recent times. On Friday, the index was up by 2.80%. 

Wrapping Up

The global stock markets have shown positive momentum this week, largely fueled by China’s stimulus package aimed at reviving its economy. Sectors like technology, chemicals, and materials saw significant gains on hopes of increased Chinese demand. Crude oil prices also stabilized, while gold continued its upward trend, reflecting growing investor interest.

Despite these positive signs, the road ahead remains uncertain. Investors should stay cautious and keep an eye on global developments as market dynamics evolve in the coming weeks.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

The global market celebrated the Federal Reserve’s 50 bps rate cut this week, as stocks moved to new higher levels except the European market.

It was the Fed’s first rate cut in four years, and it also kicked off the rate-cutting cycle this decade. The Fed struck a balance between not fueling inflation further and boosting slowing economic growth by implementing an unusual higher percentage point rate cut. 

Overall, market sentiment is improving, and as economic conditions improve, we may see more growth in the market; however, volatility is likely to persist. 

In the last week, Brent Crude has gained some ground after sliding below $70 level. It has gained close to 5% this week. On the other hand, Gold prices also hit new higher levels and has gained nearly 5.5% this week, as risk aversion sentiment persists. 

Let’s take a look at how the major stock market indices did this week.

World Stock Market Index: US Markets

Profit booking on Friday’s session led to some reversal of Thursday’s gain as traders and investors assess the 50 bps rate cut by Fed, as many think this aggressive rate cut must be due to some hidden economic risks. Overall, during Friday’s session, industrial and utility stocks fell the most. 

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

Dow Jones

Dow Jones is currently trading near its record high level, looking for additional catalysts to break higher. The index traded flat on Friday, but on a weekly basis, it closed 1.62% higher.

S&P 500

S&P 500 index faced resistance as it failed to go past its record high levels. In Friday’s session, Fedex was the biggest loser of the index and was down by 14.12% on weak earnings report. While, the index lost 0.19% and on a weekly basis, it was up by 1.36%. 

Nasdaq

Nasdaq reacted to the mixed sentiments of investors and was down by 0.36% on Friday. Overall, despite the pullback, investors remain bullish in the short-to-medium. On a week-on-week basis, the index closed higher by 1.49%. 

World Stock Market Index: European Markets

The European equity market traded lower during the week, despite a major catalyst coming in from the US. Inflation and growth concerns are still hurting the European economy. Also hawkish commentary from ECB officials impacted investors’ sentiment. 

Let’s look, how different economies performed during the week. 

FTSE 100

The Bank of England (BoE) kept its key policy rate at 5.0%, which is on expected lines, as the central bank awaits more appropriate economic indicators to begin the rate-cutting cycle. 

On Friday, FTSE 100 traded lower and was down by 1.2%, wiping out the gains of the entire week. On a week-on-week basis, it was lower by 0.48%.

CAC 40

Utility and services sector stocks drove CAC 40, France’s primary stock market index, lower in Friday’s session, losing 1.54% at the end of the day. Weekly, the index closed flat. 

DAX

Losses in technology, transportation & logistics, pharmaceuticals, and healthcare stocks pulled the market lower on Friday. DAX, Germany’s primary stock market index lost 1.51% in Friday’s session, wiping out some weekly gains. On a week-on-week basis, DAX gave a positive closing of 0.69%. 

World Stock Market Index: Asian Markets

With hopes that FIIs will increase investment in emerging Asian economies following the Fed rate cut, most Asian indexes traded higher. Barring China, all other Asian economies traded with a positive bias. 

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

Nifty 50

The Nifty 50 had a volatile week, but it still managed to reach a new record high on Friday. Year to date, the index has gained nearly 19%.

On Friday, the index closed 1.48% higher, while the Nifty 50 rose 1.55% week on week.

Nikkei 225

The Japanese stock market rose over the week and Nikkei 225 closed the week 2.28% higher. On Friday, it was up by 1.51%. 

During the week, Japan’s central bank held the short-term interest rates steady at around 0.25%, which was widely expected. 

Straits Times

Singapore’s equity market was the top performing index of the week among global peers. Boosted by the Fed’s rate cut, Singapore’s primary stock market index, Straits Times rose 5.33% over the week. But, on Friday’s session the index traded slightly lower by 0.23%. 

Hang Seng

Boosted by the Fed rate cut, The Hong Kong stock market rose showcased a strong performance during the week. On Friday, the Hang Seng index added 1.34% and on a weekly basis, it registered a cumulative gain of 4.59%.

Taiwan Weighted

Following the global cues, Taiwan’s primary stock market index, Taiwan Weighted Index, put up a strong performance during the week. It was up by 0.53% at the close on Friday, and on a week-on-week basis, it was up by 5.06%. 

KOSPI

Tracking gains of the US market, South Korean shares traded higher on Friday. The country’s primary stock market index- KOSPI was up 0.48% higher, helping the index to wipe out the weekly loss. At the close of the week, it was up by 0.49%. 

SET Composite

Thai stocks traded flat in Friday’s session, and closed the day slightly lower by 0.22%. However, on a week-on-week basis, the index rose 6.31%, helping it to continue the strong bullish momentum for another week.

Jakarta Composite

Indonesian stock market index, Jakarta Composite traded lower on Friday, and was down by 2.1%. On a week-on-week basis, the index rose 0.91%

Shanghai Composite

Economic stress continued to impact the Chinese equity market during the week. August data highlighted China’s slowing economy. Industrial production increased 4.5% year on year, which was below expectations and falling short of July’s 5.1% increase due to lower commodity prices and auto sales. Retail sales rose by a less-than-expected 2.1% from a year ago, slowing from July’s 2.7% increase.

On Friday, Shanghai Composite traded flat and closed the week lower by 1.70%. 

Wrapping Up

The global stock market traded with a positive bias, but traders remain skeptical of the Fed’s larger-than-usual rate cut and are trying to figure out what it means. Looking ahead, we can expect some short-term market volatility. However, closely monitoring key economic data, central bank commentary, and global developments will provide valuable insight into near-term market direction. 

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.

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.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

Major global indices ended the week on a mixed note, as investors awaited additional data to interpret the market’s state and determine its future direction following the previous week’s strong rally. 

The reassuring growth and inflation data from the United States and Europe are comforting investors and raising expectations for future rate cuts. 

Crude Oil continued to experience pressure and traded below the psychologically important $80 level. Gold, on the other hand, continued its bullish momentum, climbing close to 5% during the week as investors weighed on the risk sentiment.  

Let’s look at how the major stock market indices did this week.

US Markets

The week brought some relief and hopeful signs for the US market, with rising personal income and spending in July raising hopes for stronger-than-expected economic growth in the third quarter. 

The Commerce Department revised its annualized GDP estimates in the second quarter to 3% from 2.8%. Better economic indicators and cooling down inflation raised rate-cut hopes. 

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

Dow Jones

Dow Jones traded flat this week despite a strong rally in one of its major components, Intel, which rose by nearly 9%. On Friday, the index rose 0.55%, and week on week, it increased by 0.94%.

S&P 500

The higher spending and consumption report on Thursday helped the S&P 500 index gain ground on Friday, and it is now trading near all-time highs. The index rose by 1.01%, with a 0.24% increase week over week. 

Nasdaq

The NASDAQ gained ground as demand for technology stocks increased. The index rose 1.13% on Friday but failed to close the week on a positive note. It fell by 0.92% week on week. 

European Markets

Eurozone inflation is near its target. The eurozone’s headline annual inflation rate fell to 2.2% in August from 2.6% in July, the lowest level in three years but slightly above the ECB’s 2% target. But, policymakers are still cautious about lower interest rates.

Also, the eurozone’s economic sentiment indicator improved to 96.6 in August from 96 the previous month.

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

FTSE 100

The UK’s economy continued its strong momentum, which was also reflected in its stock market. FTSE 100, the primary stock market index of the UK, traded on a flat note and was slightly down by 0.04. On a week-on-week basis, it was up by 0.59%. 

CAC 40

The S&P Global-compiled HCOB flash purchasing managers index for France’s services sector rose to a 27-month high of 55.0 in August, up from 50.1 in July and far exceeding expectations. The CAC 40, France’s primary stock market index, was down 0.13% on Friday, but it rose 0.71% for the week.

DAX

The contraction in second-quarter GDP has reignited investors’ recessionary fears. However, strength in the broader market led to strength in the German stock market index. On Friday, the DAX traded flat but was up 1.47% week on week.

Asian Markets

This week, Asia’s major stock market indices traded with a positive bias following global cues. Additionally, domestic factors pushed the market higher.

Now, look at how the major stock market index performed during the week. 

Nifty 50

Strong momentum in the Indian market propelled the Nifty 50 to a new record high. On Friday, the Nifty 50 traded 0.33% higher, with the index closing 1.28% higher on a weekly basis.

Nikkei 225

Gains in Manufacturing and automobile stocks pushed Japan equities higher and added 1.25% to the Nasdaq index on Friday. On a weekly basis, the index closed 2.23% higher. 

Straits Times

Tracking broader market cues, Singapore’s equity market rose during the week. It was up 1.12% on Friday, and on a weekly basis, it was up 1.62%.

Hang Seng

The Hang Seng index rallied during the week on rising hopes of a US soft landing. On Friday, it was up by 1.13%, and on a week-on-week basis, it was up by 2.14%. 

Taiwan Weighted

Taiwanese stocks were higher at the close of trade on Friday. The Taiwan Weighted Index, the country’s primary stock market index, was slightly up by 0.30% at the close on Friday, and on a week-on-week basis, it was up by 0.50%. 

KOSPI

The South Korean equity market witnessed a mixed week, with a sell-off in tech stocks. Its primary stock market index, KOSPI, was up by 0.45% on Friday but ended the week lower by 1.01%. 

SET Composite

Thailand’s equity market witnessed less dramatic price changes during the week. The SET Composite was slightly up by 0.12% on Friday, and the index’s total gain was 0.31% on a week-on-week basis.

Jakarta Composite

The Indonesian stock market index, Jakarta Composite, traded mostly like its global peers. It was up by 0.56% on Friday and by 1.68% week-on-week.

Shanghai Composite

Chinese stocks fell after a series of corporate earnings reports missed expectations, lowering buying sentiment. While the Shanghai Composite was up by 0.67% on Friday, it ended the week down by 0.43%. 

Wrapping Up

As we look ahead, the global market conditions are mixed but cautiously optimistic following better-than-expected economic data this week. The contrasting performance of crude oil and gold indicates that investors balance optimism and caution. However, investors should remain watchful as the market may shift due to new economic data, policy decisions, or unexpected global events.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.