Global Stock Market Index: 2nd June ’24 Weekly Recap

Global stock markets painted a mixed picture this week, with some regions experiencing gains while others faced losses. While the overall trend for the month remained positive, the final days saw a pullback across several key indices.

Various factors influenced this week’s performance, including concerns over inflation and interest rates and sector-specific trends like the impact of rising home prices on the US housing market.

Gold fell 0.27%, whereas Crude Oil fell by o.89% this week. 

A quick look at the global market performance last week

Index	Previous Day Change (%)	WoW Change (%)
US Markets
Dow Jones	1.51	-0.98
S&P 500	0.8	-0.51
Nasdaq	-0.01	-1.1
European Markets
FTSE 100	0.54	-0.51
CAC 40	0.18	-1.26
DAX	0.01	-1.05
Asian Markets
Nifty 50	0.19	-1.98
GIFT Nifty	0.24	-1.25
Nikkei 225	1.13	-0.41
Straits Times	0.04	0.6
Hang Seng	-0.83	-2.84
Taiwan Weighted	-0.90	-1.81
KOSPI	0.04	-1.9
SET Composite	-0.44	-1.38
Jakarta Composite	-0.91	-2.87
Shanghai Composite	-0.16	-0.07

US Markets

Wall Street closed in the red this week, with all three major indices – Dow Jones, S&P 500, and Nasdaq – experiencing losses. As far as the entire month is concerned, it was a positive one on a down note, with small caps and value stocks outperforming. Rising home prices and mortgage rates seem to impact the housing market, with a significant drop in mortgage applications and pending home sales. Bond markets were quiet after the holiday, but concerns remain due to weak Treasury auctions and recent weakness in high-yield bonds.

Dow Jones

The Dow Jones Industrial Average Index fell around 0.98% over the week, impacted by inflation and interest rates concerns. However, on Friday, it soared 1.5% higher, making it the best day so far this year.

S&P 500

The S&P declined by approximately 0.51% over the week, although Friday saw a rise of 0.8%. This was mostly due to the release of key inflation data that largely met expectations. 

NASDAQ

The Nasdaq ended its five-week winning streak with a 1.1% drop. Despite Friday’s midday dip of 1.7%, the index closed flat.

European Markets

European stocks ended the week slightly down. The STOXX Europe 600 Index fell 0.46% in local currencies as higher-than-anticipated inflation raised concerns about the European Central Bank delaying interest rate cuts past June. This uncertainty also impacted major European markets.

FTSE 100

The UK’s FTSE 100 Index lost 0.51% despite a positive Friday. The index closed the week at 8,275.38, even though it gained 0.54% on the last trading day.

CAC 40

France’s CAC 40 Index dropped 1.26%. However, it closed the week slightly higher on Friday, edging up 0.18% to 7,992.87, suggesting a possible short-term recovery.

DAX

Germany’s DAX declined 1.05%. Disappointing retail sales data in May, which fell more than expected, further pressured the index. The DAX ended the week flat-to-negative at 18,483.07

Asian Markets

GIFT Nifty

India’s GIFT City index, the GIFT Nifty, bucked the trend of positive performance seen in broader Indian markets earlier in the week. It rose 0.24% on Friday to close at 22,742.50 and lost 1.25% over the entire week. This fall suggests that investors in GIFT City might be more cautious than the rest of the Indian market.

Nifty 50

Indian indices broke their five-day losing streak and traded positive on Friday. Led by the gains in several heavyweight stocks, Nifty ended 0.19% higher at 22,530.70

Nikkei 225

Japan’s Nikkei 225 Index ended the week slightly higher despite falling 0.4% overall. This positive shift was driven by a strong rally on Friday when the Nikkei surged 1.14% to close at 38,487.90.

Straits Times

Singapore’s Straits Times Index defied the downward trend in most Asian markets, gaining 0.6% for the week. This positive performance indicates investor confidence in the Singaporean market. The index continued its momentum on Friday, rising 0.4% to close at 3,365.59.

Hang Seng

According to FactSet, Hong Kong’s Hang Seng Index saw a steeper decline, losing 2.84% for the week. This suggests a broader market sell-off in Hong Kong. Despite Friday’s modest decrease of 0.83%, the Hang Seng closed at 18,079.61, indicating possible stabilization.

Taiwan Weighted

The Taiwan Capitalization Weighted Stock Index (Taiex) took a significant hit, dropping 3% for the week. This downward trend continued on Friday, with the index closing at 21,174.22, down 0.89%.

KOSPI

South Korea’s Kospi index struggled throughout the week, dipping 1.90%. Despite a minor 0.041% rise on Friday, the index couldn’t recover its weekly losses.

SET Composite

Thailand’s SET Composite index also faced selling pressure, ending the week down 1.38%. The negative sentiment continued on Friday, with the index slipping a further 0.44%.

Jakarta Composite

Indonesia’s Jakarta Composite experienced the steepest decline among Asian markets, dropping a significant 2.87% for the week. This weakness persisted on Friday, with the index closing down 0.91%.

Shanghai Composite

China’s mainland markets exhibited muted performance. The Shanghai Composite Index remained broadly flat for the week. In contrast, the blue-chip CSI 300 index slipped 0.6%, indicating a slight pullback for larger, more established companies. Both major indexes closed lower on Friday, with the CSI 300 declining 0.16%.

Wrapping up

Despite some positive closing performances on Friday, lingering concerns about inflation and interest rate hikes continue to cloud the market outlook. Investors will be closely monitoring upcoming economic data and central bank decisions in the coming weeks to gauge the direction of the markets.

 While some Asian markets, like Singapore’s Straits Times, defied the downward trend, others, like Indonesia’s Jakarta Composite, experienced significant declines. This highlights the ongoing regional disparities in investor sentiment. Overall, caution seems to be the prevailing mood as investors navigate this period of mixed signals.

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