Global Stock Market Index: 26th May ’24 Weekly Recap

The global stock market had a mixed week, thanks to varied economic indications from the United States and Europe. Sticky inflation in the United States remains a source of anxiety for investors worldwide, but contrasting economic signs keep investors on edge regarding the near-term market direction.

Gold fell 3.5% this week, reducing overall gains to 12.95% in 2024. Crude oil prices fell by 2.79%.

A quick look at the global market performance last week

Index	Previous Day Change (%)	WoW Change (%)
US Markets
Dow Jones	0.01	-2.33
S&P 500	0.70	0.03
Nasdaq	1.10	1.41
European Markets
FTSE 100	-0.26	-1.22
CAC 40	-0.09	-0.89
DAX	0.01	-0.06
Asian Markets
Nifty 50	0.04	2.59
Nikkei 225	-1.18	-0.36
Straits Times	-0.18	0.09
Hang Seng	-1.40	-4.83
Taiwan Weighted	-0.20	1.44
KOSPI	-1.27	-1.36
SET Composite	-0.25	-1.32
Jakarta Composite	0.50	0.59
Shanghai Composite	-0.89	-2.07

US Markets

All three major indices- Dow Jones, S&P 500, and Nasdaq reported a wildly varied performance over the week. Currently, the US economic indicators are somewhat mixed. Despite inflation remaining beyond a comfortable level, overall demand for durable goods, services, and manufacturing statistics outperformed expectations. Additionally, weekly jobless claims appeared to be stable. With robust economic data and rising inflation, investors’ hope for a rate cut by the Federal Reserve in the coming months are declining. 

Dow Jones

The Dow Jones Industrial Average Index recorded its biggest weekly loss since early April despite the prevailing bullish sentiment in the market. On Friday, the index traded primarily flat, but over the week, the index was down by 2.33%.

S&P 500

The broader S&P 500 index traded mostly flat during the week. In Friday’s session, the index was up by 0.7%, and on a week-on-week basis, it was down by 0.03%. 

Nasdaq

Nasdaq hit a new record during the week as it continued its march to uncharted territory amid rising demand for tech stocks. The index’s strength is due to strength in AI stocks, especially NVIDIA. In Friday’s session, the index was up by 1.1%, and on a week-on-week basis, it was up by 1.41%. 

European Markets

The European stock market showcased a mixed performance as questions emerged about the pace of rate cuts this year. Leaving aside the rate cut concerns, the overall economic activity in the region continues to pick up stronger than expected. The Eurozone composite purchasing manager index (PMI) for May came in at a 12-month high of 52.3, up from 51.7 in April. 

FTSE 100

UK inflation fell to 2.3%, the lowest level since July 2021. However, economists and analysts had pegged the inflation to be around 2.1%, thus dampening investors’ hope of lowering borrowing costs mid-year. On Friday, the index was down by 0.26%, and on a week-on-week basis, it was down by 1.22%. 

CAC 40

France’s dominant services sector industry suffered an unexpected contraction in May, reversing the previous month’s growth, thus impacting investors’ sentiment. On Friday, CAC 40 was down by 0.09%, and on a week-on-week basis, it was down by 0.89%. 

DAX

The German economy has overcome stagnation, achieving slight economic growth in the first quarter—up by 0.2% over the previous quarter. The DAX, the country’s primary stock exchange, was roughly flat this week, closing with a small loss of 0.06%. 

Asian Markets

Mixed signals from the United States and Europe impacted the Asian market’s momentum. Barring a few, most Asian indices traded weak and were also affected by domestic factors. Let’s have a close look at how different Asian indices performed. 

Nifty 50

Heightened volatility in the Indian stock market persisted during the week amidst the ongoing general election and corporate earnings, which have been largely positive. Nifty 50 ended flat on Friday’s session and was slightly up by 0.04%; however, on a week-on-week basis, the index was up by 2.59%.

Nikkei 225

Nikkei 225 finished lower during the week, falling by 0.36%, as the index tracked the US stock market. After reporting a contraction in GDP in the first quarter of 2024, Japan recorded growth in manufacturing in May, the first in more than a year, while the services sector PMI eased slightly during the period to 53.6 from 54.3 in the previous month. 

Straits Times

Following the global cues, Singapore’s primary stock market index, Strait Times, was roughly flat. On a week-on-week basis, it concluded the week with a slight gain of 0.09%.

Hang Seng

The Hang Seng index was the top loser among major indices, as the benchmark index declined by 4.83% at the end of the week. Weak corporate earnings and China’s failure to shore up the economy affected the stock market’s overall performance.

Taiwan Weighted

Although the Taiwan Weighted Index was slightly weak during Friday’s session, down by 0.2%, it concluded the week with a cumulative gain of 1.44%. 

KOSPI

Selling by FIIs, combined with inflation and credit concerns, sent the KOSPI index down this week. The index fell 1.27% on Friday and closed 1.36% down week over week.

SET Composite

A decline in financial services and transportation/logistics stocks slowed down the broader SET Composite index. On Friday, the index was down by 0.25%, and on a week-on-week basis, it was down by 1.32%. 

Jakarta Composite

The Indonesian market continues to witness positive momentum during the week. Its primary stock market index, Jakarta Composite, was up by 0.5% on Friday and 0.59% on a week-on-week basis. 

Shanghai Composite

Due to the property sector crisis, the Chinese market continues to experience selling pressure. Despite the government announcing a relief pack, there is no sign of relief. The Shanghai Composite index declined by 2.07% week-on-week. 

Wrapping Up

Looking ahead, the actions of the central banks of the US and Europe will continue to dominate the market. If the US fails to provide clear signs of rate cuts, the market may decline from here. But, on a positive note, the market momentum continues to be bullish, with a strong focus on technology stocks. 

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