Global Stock Market Indices: Weekly Recap

Many factors, including the geopolitical tensions escalated by the conflict in the Middle East, saw major global indices take a hit this week. An expected rise in inflation in the US, regulatory pressures and less-than-positive reports by the National Bureau of Statistics of China collectively contributed to dragging down the global stock market indices.

Global stock market indices this week

Global Indices	Weekly Change (%)
Dow Jones	0.79
S&P 500	0.45
NASDAQ	-0.18
FTSE	1.40
CAC	-0.80
DAX	-0.28
GIFT Nifty	-0.35
Nikkei 225	4.26
Straits Times	0.36
Hang Seng	1.87
Taiwan Weighted	1.59
KOSPI	1.97
SET Composite	-0.12
Jakarta Composite	0.56
Shanghai Composite	-0.28

Global Indices: US Markets

Geopolitical tensions drove the US stocks down on Friday, as investors were rattled by a possible ground incursion by Israel into Gaza, escalating the conflict in the Middle East.

Buying of the US Treasury sent the yields lower on Friday, resulting in the 10-year Treasury rates going down six basis points to 4.64%.

On Friday morning, the University of Michigan released its latest survey on consumer sentiment. It showed consumer expectations on one-year inflation rising to its highest since May, 3.8%, further aggravating the markets.

Dow Jones

The Dow Jones was the only primary benchmark index to close on a high at 33,670.29, up 39.15 points or 0.12%.

S&P 500

Amid rising inflation expectations and oil prices, the S&P 500 slid to 4,327.78, dropping by 0.50%. WoW, the benchmark index rose 0.45%, marking its second positive week.

NASDAQ

The NASDAQ closed the week at 13,407.23, down 166.98 points or 1.23%. WoW, it was down 0.18%.

Global Indices: European Markets

FTSE 100 

• On Friday, the FTSE 100 of the UK fell, driven primarily by losses suffered by the British wealth manager St. James Place amid reports of regulator pressure over fees.

• Fortunately, it ended the week higher, thanks to its heavyweight energy stocks.

• The benchmark stock index closed 0.59% lower on Friday but 1.4% higher than the previous week, ending its three-week losing run.

• Following media reports that St. James Place is under pressure from regulators to comply with the new Consumer Duty rules in the UK by remodelling their client fee structure, the wealth manager lost 21.8% of its value.

CAC

The CAC 40 closed at 7,003.53, down 101 points or 1.44%.

DAX

In keeping with the broader European trend that saw significant stock market indices take a hit, the German benchmark index closed at 15,186.66, down 238.37 points or 1.57%.

Global Indices: Asian Markets

Concerns over inflation caused the global share indices of Asia to close the week in retreat, as investors anticipate a rise in rates in the immediate future.

Robust US consumer price figures led many to believe the Federal Reserve would continue with the high interest rates. This resulted in global market indices across Asia experiencing their sharpest daily percentage drop in a week as investors grew sceptical of central banks lowering rates.

Gift Nifty

One of the benchmark indices in India, the Gift Nifty closed this week at 19,700.50, a drop of 30 points or 0.15%. It also experienced a weekly decline of 0.35%.

Nikkei 225 

• The fall in Japan’s benchmark Nikkei was halted by a 5.75% surge by the owner of the Uniqlo brand, Fast Retailing, which released a strong earnings report.

• On Friday, the Nikkei closed at 32,315.99, down 0.55%. Only 15 of Nikkei’s 225 components enjoyed gains, while 208 fell, ending a three-day winning streak. The broader Topix index also fell by 1.44%.

• Despite Friday’s losses, the benchmark index gained 4.26% over last week, ending its three-week losing streak.

Straits Times

• Singapore’s Straits Times closed the week at 3185.79, a 0.36% gain from last week.

• According to the SGX monthly statistics report released on Friday, the Straits Times Index (STI) posted a 0.5% month-on-month decline in September to 3217.41, mirroring losses across major world market indices.

Hang Seng

• The release of official reports showed producer and consumer prices in Mainland China fell behind market expectations, resulting in a fall across Hong Kong stocks and raising investor concerns about the country’s economic recovery.

• Four of China’s biggest lenders fell.

• After a five-week high, the Hang Seng Index closed at 17,813.45, a drop of 2.3%. Riding on the gains of the past six days, the index rose 1.87% against last week.

Taiwan Weighted

• The higher-than-expected US consumer price index data for September drove the Taiwanese markets down on Friday, as investors feared that inflation was still not under control.

• Large-cap stocks like the contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) attracted buyers, helping to offset overall losses.

• The Taiwan weighted, the Taiwan Stock Exchange’s benchmark weighted index closed at 16,782.57, down 0.26% or 43.34 points.

KOSPI

• World indices dived on Friday after China’s September Consumer Price Index (CPI) failed to show growth, raising global economic concerns.

• The benchmark CSI 300 Index of China closed at 3,663.41, falling by 1.05%. The Producer Price Index of China also fell by 2.5%.

• Echoing similar market sentiments, the South Korean KOSPI closed at 2,456.15, dropping by 0.96%. Worse, official data released on Friday showed that unemployment had risen in September to 2.6% from 2.4%, a historic low in August.

SET Composite

The benchmark index of Thailand ended the week at 1,450.75, down 5.24 points or 0.36%. Week-on-week, it was also down by 0.12%.

Jakarta Composite

• With the US inflation report resurrecting fears that the Federal Reserve may hike interest rates again, markets worldwide tumbled on Friday.

• The latest US CPI report showed that there was still disturbingly high core service sector inflation, resulting in international market indices, including the Jakarta Composite, losing value.

• The benchmark stock index of Thailand closed the week at 6,926.78, down 8.37 points or 0.12%. WoW, it gained 0.56%.

Shanghai Composite

• Lacklustre demand from businesses and consumers is driving prices down in China. According to the country’s National Bureau of Statistics, consumer prices remained flat YoY in September, with wholesale prices down 2.5%.

• A drop in demand from overseas markets also led to declining exports and imports.

• The Shanghai Composite closed at 3,088.10, down 19.80 points or 0.64%.

Wrapping Up

While most major stock indices suffered losses, a few, like the Dow Jones, were able to close the week in the green. Others, like the S&P 500 and the FTSE, finished higher than the last week. Most of the Asian indices, despite ending the week in the red, made gains against the previous week.

---