Global Stock Market Index: 16th June ’24 Weekly Recap

The general market sentiment remained mixed throughout the week. All major US indexes ended higher, while European political uncertainty dragged down the major indexes. On the other hand, Asian indices appeared to be disconnected from the global market, dancing to their own beat. 

During the week, gold fell by 3.52%, showing that investors are gradually shifting towards riskier assets in expectation of interest rate cuts in the coming months, which could propel the stock market higher. Brent Crude continues to trade below the $80 level.

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

Index	Previous Day Change (%)	WoW Change (%)
US Markets
Dow Jones	-0.15	-0.54
S&P 500	-0.04	1.58
Nasdaq	0.12	3.24
European Markets
FTSE 100	-0.21	-1.19
CAC 40	-2.73	-6.23
DAX	-1.46	-2.99
Asian Markets
Nifty 50	0.29	0.28
Nikkei 225	0.24	0.34
Straits Times	-0.82	-1.00
Hang Seng	-0.95	-2.31
Taiwan Weighted	0.86	2.96
KOSPI	0.13	1.31
SET Composite	-0.40	-1.96
Jakarta Composite	-1.44	-2.36
Shanghai Composite	0.12	-0.61

US Markets

Fed Chair Jerome Powell kept the key interest rates steady in the latest monetary policy announcement because he thinks inflation is still not under full control. However, he revised his outlook to just one rate cut in 2024. 

There was some good news on the inflation front during the week. Core inflation fell to 3.4%, the lowest level since April 2021. 

Dow Jones

The Dow Jones Industrial Average Index has been trading in a range since the start of the month. In Friday’s session, the index traded primarily flat and was down slightly by 0.15%, and on a week-on-week basis, it was down by 0.54%. 

S&P 500

The index saw some higher-level profit bookings on Friday ahead of the weekend. The general sentiment remains highly bullish. On a weekly basis, the index closed higher by 1.58%.

Nasdaq

The demand for AI stocks increased the tech-heavy Nasdaq index during the week. On Friday, the index traded on a flat note and was slightly up by 0.12. On a week-on-week basis, it was up by 3.24%.

European Markets

Political uncertainty in Europe kept the market highly volatile. Meanwhile, ECB President Christine Lagarde confirmed that restrictive monetary policy will continue for the rest of the year and not to expect any rate cuts soon. 

FTSE 100

The slowdown in the British housing market in May affected investors’ sentiment as prospects of imminent rate cuts by the Bank of England reduced. On Friday, the FTSE 100 was down 0.21%, and on a week-on-week basis, it was down by 1.19%. 

CAC 40

French President Macron’s dissolution of the National Assembly kept the market highly volatile. On Friday, CAC 40 fell by 2.73%, concluding the week with a cumulative loss of 6.23%.

DAX

Large outflows weighed on the German market due to the uncertain political situation. On Friday, the DAX was down by 1.46%, and on a week-on-week basis, the index was down by 2.99%.

Asian Markets

Major indexes in the Asian market traded on a mixed note throughout the week and were primarily affected by domestic factors. However, the market continues to keep a close eye on global development, especially the comments by central banks around rate cuts. Let’s have a close look at how the different Asian indices performed during the week. 

Nifty 50

The Indian stock market continued to witness increased volatility during the week; however, the broader sentiment stayed positive because of the strong footing of the Indian economy. 

In Friday’s session, the Nifty 50 was slightly up by 0.29%, and week-on-week, it was up by 0.28%. 

Nikkei 225

The Bank of Japan kept the policy rates unchanged and also decided to reduce the bond buying exercise starting this month, which investors see as a dovish move. 

In Friday’s session, Nkkei 225 traded flat primarily and was up by 0.24%. The index concluded the week with a minor gain of 0.34%.

Straits Times

The Strait Times, Singapore’s leading stock market index, performed weakly throughout the week. It fell 0.82% on Friday and ended the week down by 1%.

Hang Seng

Weakness in growth stocks pulled down the index during the week. On Friday, the index was down by 0.95% and ended the week with a cumulative loss of 2.31%. 

Taiwan Weighted

Gains in electronic, semiconductor, and other electronic stocks during the week lifted the index. On Friday, it was up by 0.86%, and on a week-on-week basis, it was up by 2.96%. 

KOSPI

KOSPI continues to scale higher despite mixed sentiment. On Friday, the index was slightly up by 0.13% and closed the week with a cumulative gain of 1.31%. 

SET Composite

Thailand stocks declined on Friday, with the broader index, SET Composite, dropping by 0.40%. On a week-on-week basis, the index was down by 1.96%. 

Jakarta Composite

After Morgan Stanley downgraded the Indonesian stock market to underweight, the broader market was negatively affected. In Friday’s session, the Jakarta Composite was down by 1.44%, taking the total loss for the week to 2.36%. 

Shanghai Composite

China’s benchmark Shanghai Composite Index showcased a mixed performance during the week. In Friday’s session, the index was slightly up by 0.12%, but on a week-on-week basis, it closed lower by 0.61%.  

Wrapping Up

Looking ahead, the global markets remain influenced by domestic and international factors. While the US markets show resilience amidst inflation control efforts, political uncertainty weighs on European indices. Asian markets, driven by local dynamics, are cautiously optimistic. As we move forward, anticipating interest rate cuts and improving economic indicators may steer market sentiment positively. Investors should stay attuned to these developments for informed decision-making.

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