Global

Following last week’s chaos in the market, investor fear has subsided, and the global market is regaining its footing. Lower-than-expected producer price index data in the US has increased hopes for a rate cut by the Fed in September, leading to a surge in stock prices in the US and affecting the Asian market. 

Uneven economic recovery in China, coupled with a lack of consumer spending and lagging industrial activity, continues to be a cause of concern for global growth recovery. This led to foreign investors pulling out a record $15 billion from China in the last quarter. 

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

Nikkie 225

Nikkie 225 recorded last week’s worst fall of the decade, erasing all the gains from this year’s rally. However, the market recovered following positive commentary from the Bank of Japan and a surge in tech and finance stocks. 

In July, Japan’s producer price index increased by 3% yearly, outpacing the 2.9% increase in June. 

The week starting 12 August 2024, Nikkei 225 traded with a positive bias, as it got support from the improving sentiment of the global market. In the last week, the index has gained nearly 4.3%. But in the previous month, it has been down by 12.4%.

Looking at the daily chart of the Nikkei 225 index, we can see that after the massive fall, the index has quickly recovered and is moving towards the next significant resistance at around 37,000. If the current momentum persists, we may see more buying in the market. Below is strong support at the 34,000 level, tested recently, and the index bounced back from there. 

Contributions from all sectors, particularly Finance, Producer Manufacturing, Technology Services, and Electronic Technology, are increasing the market.

Following are the top gainers in the last one week

Hang Seng

Last week’s China’s inflation numbers fuelled hopes for increased demand. The annual inflation rate increased from 0.2% in June to 0.5% in July. Upward trends in consumer price inflation likely indicated an increase in private consumption and economic activity.

In the last week, Hang Seng has traded with positive momentum and has gained nearly 3%. 

As reported by Bloomberg, The persistent economic slowdown in China has worried investors and increased pessimism, prompting them to withdraw their funds. Foreign investors withdrew a record $15 billion from China in the fourth quarter (April-June 2024), the highest in recent years. 

Hang Seng continues to trade on a bearish note. The daily chart shows that the index has bounced higher after testing one of its major support levels at around 16,500. We may see more buying if the index breaks above its next significant resistance at the 17,150 level. 

Finance, Energy Minerals, and Technology Services are the major contributors to this week’s index gain.

The following are the top gainers from the last week. 

Nifty 50

Amid high valuation concerns and volatility in the global market, the Indian stock market continues to trade on a negative. Top indices like the Nifty 50 have failed to recover the prior week’s losses. In the last five trading sessions, the Nifty 50 is slightly lower by 0.52% and is down by nearly 3.74% from its peak. 

Looking at the daily chart of Nifty 50, the index trades closely above the 50-day moving average slope, providing support. The Nifty 50 needs to cover the gap with solid momentum to move higher. If it breaks the 50 DMA slope, the market may move much lower toward its next support at the 23,660 level. 

Unlike their Asian counterparts, the Finance, Non-Energy Minerals, and Communication sectors are the index’s worst performers. IT, Energy, Consumer Durable, and Nondurable stocks all support the index. 

The following are the top gainers in the last one week. 

The following are the top losers in the last one week across various sectors:

Conclusion

As we move forward, global markets seem to stabilize after last week’s chaos and extreme volatility, driven by optimism around a potential rate cut in the US. However, uncertainties remain. Investors should stay cautious and closely monitor economic indicators and central bank actions 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 recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

The extended slowdown in economic activity in the US has once again fueled recessionary fears in the country. Goldman Sachs’s economist increased the likelihood of a recession next year to 25% from 15%. This spooked investors worldwide, including the European stock market. 

Also, the unwinding of the Yen Carry Trades in the global market has caused a massive sell-off. According to a news report, Yen Carry Trades in the worldwide market was reportedly around $4 trillion last week. 

However, investor sentiment remains bearish as markets cool down from increased volatility. The economic indicators in the Eurozone area are not positive either. The report showed Retail sales declined by 0.3% month-over-month in June, compared to the expectation of 0.1%. 

With so much economic uncertainty surrounding the global market, the focus has shifted toward the central bank’s actions, including whether it will pursue an early rate cut.  

Top Gainers and Losers in the European Stock Market

Top Gainers

The following are the top gainers in the last one week. 

Top Losers

The following are the top losers in the last one week across various sectors:

During the week, the market’s losses were not limited to one sector. The sectors with the greatest losses are financials, producer manufacturing, technology services, and consumer non-durables. Despite the losses, the Electronic Technology and Health Technology sectors are showing strength in the market.

STOXX Europe 600

The STOXX Europe 600 index is Europe’s most extensive stock index, replicating almost 90% of the European market. The overall sentiment continues to be extremely bearish. As of 7 August, the index is down by 5.02% over the last five days.

After the gap-down opening on Monday, the index trades on a bearish note. STOXX Europe 600 is now experiencing strong resistance at around 490. If the index fails to cover the gap or moves higher above the 500 level, weakness will likely persist. Below 480 is a strong support level. 

FTSE 100

Last week, the UK’s Bank of England cut the short-term borrowing rates, bringing them down from a 16-year high level to support the economy and keep the growth momentum intact.  Also, The UK’s consumer price index stayed within the central bank’s 2% target in June.

Despite the massive sell-off on Monday, the index closed above one of its key support levels at around 8,000 and is witnessing buying. The 8140 level is extremely resistive; the index might be challenging to break above it. If it breaks below the 8000 level, the next major support is around the 7700 level. 

CAC 40

The French economy is likely to have an Olympic ripple and is expected to grow by 0.3% in the third quarter, compared to the initial forecast of 0.1%. 

As of 7 August 2024, CAC 40, France’s primary stock market index, was down by 5.75% over the five days, showcasing extreme levels of volatility. Despite the cooling down, the market recovery was muted as traders avoided placing large bets, reassessed the impact of the pullback, and awaited new bullish triggers.

CAC 40 broke below one of its key support levels at around 7,300 and has formed a head-and-shoulder pattern on the daily chart, which is a bearish formation. The index is now experiencing strong support at the 7,050 level, and to reverse the bearish formation, it needs to break above the 7,320 level with solid momentum. 

DAX

German factory orders rose for the first time in a year, backed by solid demand in the auto and metal sectors. However, the DAX 30 continues to witness extreme volatility. As of 7 August 2024, the index was down by more than 6.5% over the five days. 

The European market’s overall momentum has turned negative. It is trading close to one of its major support levels, around 17,300. A break below could result in more selling. Conversely, the index needs to clear above the 17,750 level to break away from the bearish momentum. 

Conclusion 

Due to several factors, European stocks are expected to remain under pressure as we move forward. All eyes will be on central banks and their next moves, which will be crucial in determining the market’s direction. Keeping an eye on all market developments is crucial to making informed investment decisions amidst these rapidly evolving changes in the market. 

*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 recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

It was a pretty volatile week for the global market. A massive downturn in economic activities was reported across the world’s largest economy, and second-quarter corporate earnings were weak. The impact spilled over to other parts of the world, including Europe and Asia. 

Crude oil prices continued to fall this week, with Brent Crude dropping more than 6% to settle below $80. Meanwhile, gold maintains bullish momentum due to investors’ high-risk aversion. 

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

US Markets

In the July meeting, the Federal Reserve decided to keep the interest rates on hold again on expected lines. But, the market was looking for the commentary in which Fed Chair Jerome Powell indicated strongly about the September rate cut. 

July non-farm payroll was below expectations. It rose by only 114,000, compared to the expectations of 185,000. The unemployment rate surged to 4.3%.

On the other hand, weak corporate earnings and guidance continue to hurt the world’s largest market. Amazon slipped more than 11% on Friday after revenue missed estimates and increased the capital expenditure needed to support the company’s AI program. Intel also nosedived more than 26% on Friday after the company handed out pink slips to 15,000 staff.

Let’s see how the world’s most tracked indexes performed.

Dow Jones

Amid recession fears in the economy caused by disappointing job data, companies handing out pink slips, and weak corporate earnings, the Dow Jones Industrial Average (DJIA) fell nearly 1.51% on Friday, bringing the total loss of the week to 2.10%. 

S&P 500

Disappointed economic data shocked investors and massive selling in tech stocks resulted in a pullback in the S&P 500 index. On Friday, the index was down by 1.84%, and the cumulative loss was 2.06% on a week-on-week basis. 

Nasdaq

Massive selling in tech stocks continued to hurt the tech-heavy index. On Friday, the Nasdaq fell by 2.43%, bringing its cumulative loss for the week to 3.35%. 

European Markets

Weak investor sentiment in the US also impacted the European equity market. While the Eurozone economy expanded 0.6% on a year-on-year basis in the second quarter of 2024, initial estimates show that annual inflation in the region rose to 2.6% in July compared to 2.5% in June. Also, the unemployment rate ticked up to 6.5% in June. 

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

FTSE 100

The UK stock market was steady during the week, but it fell on Friday due to weakness in the global market. The Bank of England cut its key interest rate by 0.25% to 5.00%, the first reduction since the coronavirus pandemic began in March 2020.

On Friday, FTSE 100 was down by 1.33%, taking the weekly cumulative loss to 1.34%. 

CAC 40

Amidst the Olympics euphoria in Paris, CAC 40, the primary stock market index, was down by 1.64% on Friday’s session. The index concluded the week with a loss of 3.54%. 

DAX

Recessionary fears in the US and challenging economic conditions in Germany continued to hurt the German stock market. The DAX witnessed a sharp fall during the week. On Friday, the index was down by 2.39%, concluding the week with a cumulative loss of 4.11%. 

Asian Markets

Following the global cues, the Asian market also traded weakly during the week. Domestic factors also affected the respective markets. Let’s examine how the primary stock market index performed during the week. 

Nifty 50

The Indian market had an incredibly volatile week. The market was buoyed by corporate earnings data that exceeded expectations. However, the market saw extreme volatility on Friday, with the Nifty 50 falling by 1.17%. On a weekly basis, it decreased by 0.80%. 

Nikkei 225

Disappointing macroeconomic data and the Bank of Japan’s hawkish stance on rate hikes resulted in a sharp fall in Nikkie 225. During the week, the Bank of Japan raised short-term interest rates to 0.25%.

The hike was the second time in the year. The Bank also indicated it would start tapering monthly bond purchases, moving away from the ultra-loose monetary policy. On Friday, Nikkei 225 fell sharply by 6.17%, and on a week-on-week basis, it was down by 4.67%. 

Straits Times

Following the global cues, Singapore’s primary stock market index traded on a bearish note. It was down by 1.14% on Friday and by 1.31% on a week-on-week basis.

Hang Seng

Chinese equities were mixed after disappointing manufacturing data dampened investor sentiment. On Friday, Hong Kong’s benchmark Hang Seng Index was down 2.12%, or 0.45%, from its weekly total loss.

Taiwan Weighted

The sharp decline in US tech stocks and recessionary fears due to slowing economic growth resulted in a big fall in the Taiwan Weighted Index. Taiwan is the top US trade partner and supports the global economy’s manufacturing supply chains. Any slowdown in the US and global economies will hurt the Taiwanese economy. 

On Friday, the Taiwan Weighted Index was down by 4.64%, wiping out the week’s gains. The total loss was 2.18%. 

KOSPI

South Korea’s headline inflation rose faster than expected in July, affecting investor sentiment. On Friday, the primary stock market index of South Korea, KOSPI, was down by 3.79%. On a weekly basis, the index fell 2.04%.

SET Composite

Thailand’s equity market index, SET Composite, was down by 0.74% during Friday’s session but closed the week higher by 0.45%.

Jakarta Composite

Bucking the global cues, the Indonesian stock market traded flatly during the week. On Friday, the Jakarta Composite was slightly down by 0.24%; on a week-on-week basis, it was up by 0.27%.

Shanghai Composite

China’s manufacturing Purchasing Managers’ Index (PMI) slipped to 49.4 in July from 49.5 in June, marking the third consecutive monthly contraction. 

Over the week, the Shanghai Composite traded flat. On Friday, it was down by 0.93%, but on a week-on-week basis, it was up by 0.50%. 

Wrapping Up

As we look ahead, market volatility is likely to persist as investor sentiment has turned negative. Closely watching the economic indicators, corporate earnings reports, and central bank commentary will help you gauge the future direction of the markets. As volatility persists, a cautious and well-diversified investment approach remains essential.

*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 recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

The US stock market is showcasing mixed performance due to heavy selling in tech stocks, disappointing second-quarter results from key industry players, and investors awaiting the outcome of the two-day Federal Reserve policy meeting that started on Tuesday.

On the economic front, CB Consumer Confidence rose from 97.8 in June to 100.5 in July, exceeding the forecast of 99.7. JOLT’s Job Openings decreased from 8.23 million in May to 8.18 million in June. In May, the Case-Shiller Home Price Index rose by 1.0% monthly, compared to the expected 1.2% increase.

Top Gainers and Losers in the US Stock Market

Top Gainers

The following are the top gainers in the last one week. 

Top Losers

The following are the top losers in the last one week across various sectors:

The top gainers in the index continue to skew towards Electronic and Health Technology stocks. 3M is the top gainer in the S&P500 index because its strong earnings beat analysts’ expectations. CBRE Group’s stock also benefits from the robust earnings report. 

On the other hand, tech stocks, especially AI stocks like Nvidia and AVGO, are under extreme selling pressure because of valuation and demand concerns. Also, Tesla’s stock is impacted by weak Q2 earnings, which were way below analysts’ expectations.  

How did the US stock market indexes perform during the week?

Nasdaq 100

Broader pullbacks in tech stocks and weak earnings by key industry players like Tesla, Meta, and Alphabet have pressured Nasdaq. Traders are worried that high AI spending would hurt profits and that premium valuations of tech companies are not justifiable. 

On Tuesday (30th July 2024), the Nasdaq 100 continued to trade with a negative bias, losing 1.38%. The index has been down 3.49% in the last five trading sessions. 

Looking at the daily chart, the overall momentum of the index has turned negative. The index has broken below the 50-day Moving Average, offering firm support and moving further lower. The Nasdaq is now below one of its key support levels, 18,900. The next major support is at around 18,500. 

S&P 500

The S&P 500 index showcases resilience and falls less than the Nasdaq because of its diversified exposure and investors’ preference for defensive stocks amidst extreme volatility in high-growth tech stocks. 

On Tuesday (30th July 2024), the S&P 500 ended the day lower, down 0.50%. The index was down more than 1.2% in the last five trading sessions. 

The 50-day Exponential Moving Average slope strongly supports the index, coinciding with its primary support level of 5,450. A break below these support levels will turn the market’s momentum negative. The following two major support levels are approximately 5,370 and 5,260. 

Conclusion:

As we move forward, the market’s direction will likely hinge on the Federal Reserve’s policy meeting outcomes and the ongoing earnings season. The tech sector’s performance will be closely watched, especially given recent volatility. Investors should remain cautious, focusing on diversified portfolios and defensive stocks to navigate the current market uncertainty.

*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 recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

Global market sentiment remains low, with weak US and European stocks leading the way. With central banks in the United States and Europe painting a bleak picture of the economy and a persistent slowdown in economic activity in China, investor sentiment in the Asia stock market has remained low.

Crude oil prices have also fallen dramatically over the last week. Brent Crude has dropped more than 4% and is currently trading around $81 due to a weak demand forecast. On the other hand, gold prices have begun to rise again.

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

Nikkie 225

The lack of positive economic indicators continues to hurt the Japanese stock market. The momentum remains largely negative as the country struggles to revive growth. In the first quarter of 2024 (Jan to March), the economy fell faster than expected, shrinking by 2% annually. 

Traders are now looking forward to July’s Services PMI numbers. A higher Services PMI would raise investors’ expectations of a July Bank of Japan rate hike. 

The services sector employs more than 70% of Japan’s workforce. Rising service sector activity would increase employment, boosting wage growth and consumer spending. The week starting 22nd July 2024, the Nikkei 225 has been trading with a negative e-bias. The index has been down by about 4.34% in the last week.

The daily chart of the Nikkei 225 index shows that it has turned from the 41,000 level and is going south, as it failed to gain enough buying momentum. The 39,000 level below looks to be a strong support level for the index. If the market finds it too difficult to gain upside momentum and breaks its immediate support at the 39,000 level, then the next major support is at the 37,000 level.

The sectors driving the market down are Producer Manufacturing, Consumer Durables, and Electronic Technology.

Hang Seng

China’s GDP increased by 4.7% year on year in the second quarter of 2024, falling short of expectations and slowing from 5.3% growth in the first quarter.

On Monday, July 22, the People’s Bank of China surprised the market by announcing policy measures to boost the Chinese economy. Loan prime rate and Reserve Requirement Ratio cuts focused on Beijing’s worries over slower-than-expected growth in the second quarter of 2024.

Meanwhile, Hang Seng continues to trade on a bearish note. The index has been making lower lows and lower highs on the daily chart, signaling a downtrend. And it has also broken below the 17,500 level, a critical support level. The next major support is at around 17,180 and 16,500 levels. 

Energy Minerals, Technology Services, Producer Manufacturing, and Consumer Non-Durable stocks were the top losers of the week.

Hang Seng Top losers in the last week

Nifty 50

The Indian stock market was highly volatile during the past week because of mixed global signals and the new government’s first union budget. Because of the increased volatility, the Nifty 50 returned from 24,854.80 (its all-time level) this week. 

However, overall momentum continues to be positive. The improving outlook of the major IT companies contributed to the index’s growth in the past few sessions. This week, both the Nifty 50 and Sensex hit fresh record highs. However, in the last five trading sessions, the Nifty 50 has been slightly lower by 0.59%. 

Looking at the daily chart of Nifty 50, the index failed to move higher and made its all-time high level as a new resistance. To resume the upside trajectory, it must clear above this level with solid momentum. Below, the 24,230 level is likely to support the index strongly. On RSI, we can see that the current upside momentum is weakening.

Like the global market, the Energy, Minerals, and Finance sectors are the top losers, while the IT sector stocks gained the most. 

The Top Gainers in The Last Week

The Top Losers in the last one week

Conclusion

As markets navigate these challenging times, investors will likely stay cautious, closely watching economic indicators, central bank actions, and corporate earnings. The next few weeks will be crucial in determining whether the markets can regain their footing or continue on a downward trajectory.

*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 recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

Introduction

Multiple factors kept European stocks under pressure the week starting July 17, 2024, led by the decline in commodity stocks. Many luxury brands, like Germany’s Hugo Boss and the UK’s Burberry, either cut down on full-year sales outlook or issued profit warnings on weak luxury demand, showcasing weak consumer sentiment. 

However, what supported the market was dovish commentary from Fed Chair Jerome Powell, suggesting earlier-than-expected rate cuts and not waiting for inflation to get down to 2%, thus fueling speculation of multiple rate cuts. 

The emerging political scenario in the US will also likely affect the European market in the coming days. European stocks are also being impacted by the waning Chinese economy. In Q2, the Chinese economy grew by 4.7% year-on-year, down from 5.3% in Q1. This slowdown is adversely affecting German companies that deal in luxury goods. 

Eurozone industrial production fell by 2.9% year on year in May, following a 3.1% drop in April. Much of the attention is now focused on Eurozone inflation data, which will be released today (Wednesday), and the ECB press conference on Thursday.

Top Gainers and Losers in the European Stock Market

Top Gainers

The following are the top gainers in the last one week. 

Top Losers

The following are the top losers in the last one week across various sectors:

Know More: Can The 15x15x15 Rule Help You Become a Crorepati?

The losers in the European market mainly belong to the Consumer Durables, Energy Minerals, Non-Energy Minerals, and Consumer Non-Durable segments. The Producer Manufacturing, Finance, and Health Technology segments showcase market strength.

Now that you know the top gainers and losers in the European stock markets, let’s see how the European indices fared during the week.

STOXX Europe 600

STOXX Europe 600, the largest stock index replicating almost 90% of the European stock market, is trading weak. With deteriorating investor sentiment and suggested recovery in the Euro economy looking bumpy, the index is likely to deal with a bearish note unless there is a monetary push by central banks. 

STOXX 600 failed to break above 525 for the third time in a row, indicating that it has become highly resistant. The Relative Strength Index, a momentum indicator, is falling, indicating a loss of bullish momentum. The 510 and 500 levels below provide strong support for the index. 

FTSE 100

Despite improving economic indicators, the FTSE 100 failed to maintain its positive momentum, giving up its gains in the previous week. 

UK GDP increased by 0.4% in May, following zero growth in April. Increases in service and construction output fueled the increase. On a rolling three-month basis, the economy expanded by 0.9%, the fastest rate since 2022. 

After failing to break above the resistive 8,290 level for the fourth time in a row, the index showcased weakness and fell toward its immediate support level of 8,140. A break below this level could trigger further weakness in the market and send it below the 8,000 level. The RSI index is also below 50, suggesting weak momentum in the market. 

CAC 40

Political and economic uncertainty has put pressure on the stock market of the third-largest country in Europe. Experts suggest the country will not gain much economically from the Paris Olympics and is projected to grow by 0.3 percentage points this quarter due to the games. 

CAC 40 has failed to break above the resistive 7,726 level this week and reversed its momentum, erasing the gains it made the previous week. Currently, there is strong support at the 7,480 level, and if it breaks below, we may see more weakness in the market. 

DAX

Germany, Europe’s largest economy, has been severely impacted by weak consumer demand. It was the only G7 economy that contracted last year and is expected to grow slowly again this year. Declining exports, political uncertainty, and central banks’ unclear monetary policies have all contributed to lower consumer sentiment. The ZEW Economic Sentiment Index fell from 47.5 to 41.8 in July, missing expectations and capping an eight-month streak of increases.

DAX pulled back at the start of the week after trying to break above the 18,800 level but failed. It is moving towards one of its strong support levels at around 18,400. The overall momentum continues to be weak, and if it breaks below the 18,400 level, it may test for support at the 18,000 level. 

Conclusion 

Due to several factors, European stocks are expected to remain under pressure as we move forward. The emerging political landscape in the US, along with the impact of China’s slowing economy, will likely influence European markets in the coming days.

Key indices like the STOXX Europe 600, FTSE 100, CAC 40, and DAX exhibit bearish sentiment. The outlook for European stocks remains cautious, and strategic investment decisions will be crucial in navigating this challenging environment.

*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 recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

The global stock market traded with a positive bias this week, with all major indices closing higher. Encouraging economic indicators from the United States and around the world helped the market continue to rise despite emerging political uncertainty in the US and Europe.

One concerning development is the rise in crude oil prices, which has the potential to derail inflation-fighting measures. Brent Crude is up by 2% this week and is close to the $87 mark. And gold is up by 2.63% during the week. 

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

US Markets

Traders reacted positively to the better-than-expected non-farm payroll data, which increased their bet on a less hawkish Fed and a possible one-rate cut during 2024. The strength in AI and tech stocks provided support to the market. 

Let’s see how the world’s most tracked indexes performed. 

Dow Jones

The Dow Jones Industrial Average Index failed to move higher despite the strong momentum and traded in a range-bound fashion. It was mostly flat during Friday’s session and was slightly up by 0.17%. On a week-on-week basis, it was up by 0.66%.

S&P 500

The S&P 500 index finally managed to break above the psychologically important 5500 level. In Friday’s session, the index was up by 0.54%, concluding the week with a cumulative gain of 1.95%. 

Nasdaq

The week after profit booking in AI and tech stocks, bulls returned to the market, taking the Nasdaq to historic highs. On Friday, the index was up by 0.90%, and on a week-on-week basis, it gained 3.5%. 

European Markets

Political uncertainty eased in France, and the UK Labor Party won the general election with a large majority, helping to cool investors’ nerves and boost confidence.  On the other hand, despite the rate cut in June, the European Central Bank continued to be slightly hawkish as uncertainties regarding future inflation, productivity, and profits remain. 

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

FTSE 100

The UK stock market was largely volatile during Friday’s session because of the election result announcement and the shift of power to the Labor Party. The FTSE 100 was down 0.46% but concluded the week with a cumulative gain of 0.30%. 

CAC 40

French stocks rose this week, snapping a weeks-long losing streak. In Friday’s session, the index was slightly down by 0.26% and on a week-on-week basis, the CAC 40 closed nearly 1.92% higher. 

DAX

The German economy continues to struggle as manufacturing and industrial activity declines. On Friday, the DAX traded flat, rising 0.14%. On a weekly basis, the index rose by 1.45%, mostly in line with all major exchanges. 

Asian Markets

Taking cues from the US and European markets, most Asian indexes traded on a positive note during the week. Domestic factors also influenced the market. Let’s take a closer look at how the various Asian indices performed over the week. 

Nifty 50

Led by gains in heavyweight stocks due to heavy FII buying, the Nifty 50 hit an all-time high on Friday, surpassing the 24,300 level. The market was quite volatile on Friday, but it managed to close with a slight gain of 0.09%. On a weekly basis, the Nifty 50 rose by 1.17%.

Nikkei 225

Continuing the previous week’s positive momentum, Nikkei 225 continued its upside momentum during the week. Despite the flat close on Friday, the index concluded the week 3.99% higher. 

Straits Times

Singapore’s primary stock market index traded on a positive note throughout the week. Although it was down by 0.85% on Friday, it was up by nearly 2% week-on-week to close the week on a higher note. 

Hang Seng

After China reported underwhelming manufacturing data, which raised concerns surrounding the economy’s slowing down, the Hang Seng index fell significantly in Friday’s session, losing 1.28%. On a week-on-week basis, the index was up by 0.47%.

Taiwan Weighted

Taiwan Weighted once again displayed strong momentum during the week, helping it to retain the title of the best-performing index in the world in 2024 for another week. In Friday’s session, the index was up by 0.14%, concluding the week with a cumulative gain of 2.81%.

KOSPI

KOSPI continued to soar for the fifth consecutive week. On Friday, the index gained 1.30% and registered a weekly gain of 2.81%.

SET Composite

Thailand’s equity shares closed up 0.83% on Friday, helping to offset the week’s loss. On a week-on-week basis, the index rose by 0.19%.

Jakarta Composite

The Indonesian stock market rose throughout the week, reaching a 0.45% high on Friday. The index rose by 2.69% weekly.

Shanghai Composite

The Shanghai Composite Index registered a modest loss for the week. The country’s manufacturing activity contracted for the second consecutive month in June. The Shanghai Composite index was down by 0.26% on Friday and 0.59% on a week-on-week basis.

Wrapping Up

As the global stock markets close the week on a high note, investors remain cautiously optimistic about the future. The encouraging economic indicators from the United States and around the world suggest that markets will continue to rise, though political uncertainty in the United States and Europe may cause some volatility.

It will be critical to closely monitor economic and political developments and sector-specific performance to effectively navigate the changing market dynamics.

*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 recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

Putting aside fears about global growth and inflation, investors worldwide poured money into equities, sending global indices to new highs. The bullish trend continues to dominate, with a fundamentally solid market delivering strong performances. 

However, throughout the last week, the market has shown mixed performance. The US market saw profit booking, the European market traded in the negative due to political and economic uncertainty, and the Asian market performed well.

Crude oil continues to trade above $85, closing the week higher by 0.73%. And, gold traded mostly flat during the week. 

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

US Markets

The US stock market closed the first half of 2024 on a high and was the best-performing market worldwide. However, during the week, profit booking in AI and tech stocks and weak investor sentiment resulted in markets falling slightly. On the inflation front, the core personal expenditure index, which showed the pace of inflation slowing down to 0.1% in May, increased the probability of a rate cut by the Federal Reserve during its September meeting. 

Let’s see how the world’s most tracked indexes performed. 

Dow Jones

The Dow Jones Industrial Average Index was mostly flat during Friday’s session and was slightly down by 0.12%. On a week-on-week basis, it was down by 0.08%.

In the first six months of 2024, the index rose by 3.79%.

S&P 500

S&P 500 failed to close above its psychologically important 5500 level at close during the week. In Friday’s session, the index was down by 0.41%, concluding the week flat.

In the first half of 2024, the index rose by 14.48%. 

Nasdaq

Profit booking in AI and tech stocks resulted in the index closing with losses during Friday’s session, down by 0.71%. However, on a week-on-week basis, the index closed slightly higher by 0.24%.

Nasdaq rose by 18.13% in the first half of 2024.

European Markets

Political uncertainty in France, a decline in consumer confidence in the Eurozone, and a rise in unemployment and deterioration in business confidence in Germany led to the market’s weak performance during the week. Let’s look at how the top three European indexes performed during the week. 

FTSE 100

The coming week will be crucial for the UK because of the general elections on July 4th. Volatility is expected to increase during the week. In Friday’s session, the FTSE 100 traded flat and was slightly down by 0.19%. The index concluded the week with a cumulative loss of 1.42%.

In the first half of the year, the index rose by 5.73%.

CAC 40

During the week, the French index was the worst-performing major index in the Eurozone. On a week-on-week basis, CAC 40 was down by 2.95%. And in the first six months of the year, the index declined slightly by 0.68%.

DAX

The German market was steady during the week despite the weak economic indicators. In Friday’s session, DAX traded on a positive note and closed slightly higher by 0.14%. On a week-on-week basis, the index was down by 0.49%. DAX was the best-performing European market in the year’s first half, up by 8.74%.

Asian Markets

Most of Asia’s major indexes traded on a positive note during the week, influenced primarily by domestic factors. However, the market continues to track the US and European indices closely.

Let’s look at how the various Asian indices performed over the week. 

Nifty 50

Led by gains in heavyweight stocks, the Nifty 50 hit an all-time high on Friday, taking it above the 24,000 level, but it failed to keep up the gains. On Friday, it was down slightly by 0.14%, and on a week-on-week basis, it was up by 2.57%. In the past six months, the Nifty 50 has been up by 10.49%.

Nikkei 225

The Japanese stock market reversed its negative momentum during the week. On Friday, Nikkei 225 was up by 0.61%, and on a weekly basis, it was up by 2.01%. In the first half of 2024, the index was up by 18.91%.

Straits Times

Singapore’s primary stock market index, traded on a mixed note throughout the week. It was slightly down by 0.32% on Friday and was up by 0.56% at the end of the week. In the first half of 2024, the index was up by 3.18%.

Hang Seng

The Hang Seng index reversed its gains on Friday as investor sentiment turned weak. The index closed flat and ended the week with a loss of 1.71%. The index rose by 5.54% in the first half of 2024.

Taiwan Weighted

Taiwan Weighted is the best-performing index in the first half of 2023, gaining nearly 29%.  In Friday’s session, the index was up by 0.55%, concluding the week with a cumulative gain of 0.96%.

KOSPI

Improving economic and investor sentiment led to the index trading with a positive bias. In Friday’s session, the index closed 0.49% higher, and KOSPI was up by 1.2% week-on-week. In the first half of 2024, KOSPI was up by 4.79%.

SET Composite

Thailand shares traded on a weak note during the week, losing 1.2% compared to the previous week. On Friday, the SET Composite was down by 0.65%. It is also the worst-performing major index in 2024, down by 9.24%.

Jakarta Composite

The Indonesian stock market traded higher during the week. In Friday’s session, it was up by 1.37%. On a week-on-week basis, the index was up by 2.53%. In the first six months, the index was down by 3.55%.

Shanghai Composite

Chinese shares traded on a mixed note during the week. Shanghai Composite declined by 0.73% on Friday, leading to the index turning red with a loss of 0.17% at the close of the week. In the first half of 2024, the index was down by 0.17%.

Wrapping Up

Looking forward, corporate earnings reports for the April-June quarter will continue to dominate and provide direction to the market in the coming weeks. However, global markets remain cautiously upbeat, taking into account the contradictory economic signs. Overall, staying informed is critical for investors navigating the changing global market conditions.

*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 recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

The week starting June 24, 2024, political uncertainty and French President Emmanuel Macron’s warning of civil unrest kept European markets under pressure, with investors mostly ignoring economic reports. 

The coming days in the European stock market are likely to be volatile. The United Kingdom is also preparing for its general elections, which are scheduled for 4 July 2024. Investors are expecting distorted election results. 

The Euro area inflation was 2.6% in May 2024, exceeding the forecast of 2.5%. It is up from 2.4% in April 2024. Core inflation also increased to 2.9%, thus potentially delaying the European Central Bank’s rate cut. 

The HCOB Eurozone Manufacturing Purchasing Manager Index (PMI) for June came in at 45.6, a drop from May’s 47.3, marking six consecutive months of contraction. Also, Services PMI contracted from May’s 53.2 to 52.6 in June. 

STOXX Europe 600

STOXX Europe 600 is the standard household index replicating almost 90% of Europe’s underlying investible market. The index traded on a mixed note and was sideways in the last seven trading days. Profit booking in the stocks of global chip companies, weak economic data, and rising inflation kept the market under pressure. 

STOXX 600 is currently experiencing a pullback from the higher level and is lacking strength to go higher. Relative Strength Index, which indicates the strength in the selected stock or index, is falling. The index has a strong support at the 500 level and strong resistance at the 525 level.

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FTSE 100

The UK’s headline inflation fell from 2.3% in April to 2% in May, bringing it back within the Bank of England’s target range. The FTSE 100, the UK’s flagship stock market index, has been largely volatile over the last seven trading days as the country prepares for the general election in July. On Tuesday (25th June 2024), the index was slightly down by 0.41%, while it has gained 0.52%. In 2024, the index is up by 6.82%. 

The FTSE 100 is currently trading in a rangebound movement, and the overall strength to go higher is mainly missing, likely due to weak investor sentiment. The index has bounced higher from its strong support at the 8,140 level but is currently experiencing resistance at the 8,290 level. Failure to break above the resistance level may result in further weakness. 

CAC 40

French stocks were under pressure due to President Emmanuel Macron’s snap election call. The index has slightly recovered this week after a severe decline of over 6% the previous week, the largest since March 2022. 

On Tuesday (25th June 2024), the CAC 40 was down by 0.58%; last week, it was up by 1.22%. In 2024, this index has lagged in terms of returns and has only risen by 1.75%. CAC 40 has bounced higher from one of its strong support levels at 7,550 after declining severely by over 6%. The overall sentiment continues to remain weak and has to break above the 7,900 level with strong momentum to continue moving higher. 

DAX

In Tuesday’s session (25th June 2024), DAX was the worst performer in the European stock market and was down by 0.81%, due to the sharp decline in aerospace and defense stocks. The index slightly increased by 0.61% in the last seven trading days. In 2024, DAX is the best-performing index in Europe, which has gone up by 8.40%.

DAX pulled back at the start of the week to test one of its strong support levels at around 17,950. In order to continue moving higher, it needs to break above the 18,800 level with strong momentum. Below, there is strong support at the 16,900 level. 

Top Gainers and Losers in the European Stock Market

Top Gainers

The following are the top gainers in the last one week. 

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Top Losers of European Stock Market

The following are the top losers in the last one week across various sectors:

Conclusion 

Factors like Inflation concerns, slowdown in manufacturing and services, uncertainty over rate cuts, and  political uncertainity in two large European countries are likely to dominate the European stock market in the near term.  For the market’s current sentiment to reverse, lower inflation and increase in manufacturing and services will be required.

*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 recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

FAQs

Weaker than expected May inflation data cheered the US financial market last week, but the underwhelming retail sales data during the month was a cause of worry. Retail sales rose by a meager 0.1% in May.

On the other hand, US non farm payrolls rose by 272,000 jobs in May, against the expected 185,000 jobs. Despite a strong job market, household spending is depressed amid higher credit cost and inflation. 

Speaking about rate cuts, last week the Fed announced its decision to maintain the current rates due to persistent inflation rates that exceed the target range. However, Fed Chair, Jerome Powell has indicated a single rate cut in 2024, but refrained from giving any specific timeline. 

Nasdaq 100

Bullish investor sentiment and better than expected quarterly earnings of semiconductor and AI stocks pushed Nasdaq to scale new highs. 

On Tuesday (18th June 2024), Nasdaq extended its upward journey to seven sessions, rising by 2.99% in the last one week. The index has gained by 18.99% to-date in 2024, making it one of the best performing global indexes. 

Nvidia- the AI chipmaker’s market cap has surged past Microsoft and Apple to become the most valuable company in the world. 

Nasdaq is currently trading in the uncharted area, trying to break above the psychologically important 20,000 level. By looking at the Relative Strength Index, we can see the overall sentiment continues to be extremely bullish and has strong support at around 19,215 and 18,900 level. 

S&P 500

Amid mixed retail sales data and concerns around the sticky inflation, strength in key technology stocks has kept the overall market outlook optimistic.

On Tuesday (18th June 2024), S&P 500 continued its upward journey rising by 0.25%, making an all-time new high during the day. The index has gained 1.22% in the last week and is up by 15.04% in 2024. 

Like Nasdaq 100, S&P 500 is also guided by the strength in the technology stocks as all other sectors in the index are showcasing mixed performances. 

S&P 500 is currently trading in an uncharted territory, guided by the strength in technology stocks. It is trying to break above the psychologically important 5,500 level. The index has a strong support at around 5,400 level, and then at around 5,250 level. Relative Strength Index is currently above 70 and is indicating a strong bullish sentiment. 

Top Gainers and Losers in the US Stock Market

Top Gainers

The following are the top gainers in the last one week. 

Top Losers

The following are the top losers in the last one week across various sectors:

Source: TradingView

All the top gainers in the US stock market are from the technology sphere, especially from the electronic technology segment. Oracle, which has second-highest gainers in the last week, has reported its Q4 earnings report of FY24 (June-May). The company provided better than expected financial guidance for FY25, resulting in stocks to surge higher. 

On the other hand, ETSY- an e-commerce company is the top loser of the week. It is affected by slowdown in business and declining revenue sources and user acquisitions. PayPal is also facing the same issues, as it is facing tough competition from Apple and declining margins. 

Conclusion

The current upside momentum in the US market is mostly driven by a strong bullish trend in technology stocks. In contrast, sectors such as finance and consumer durables are having a less significant impact. For the market’s upward momentum to continue, a combination of lower inflation and increased consumer spending will be required.

FAQs