The third week of November was quite positive for investors across the globe. If you look at the global indices, all the major indices have gone up this week with significant gains.
As both the UK and the US markets are not expecting rate hikes in the near term, the investors are becoming confident to pour in money. Even the European and Asian markets also reaped some significant profits this week following the inflation data released by the US and a drop in crude prices.
Leading world indices week-on-week (WoW) change
|Index||Previous Day Change (%)||WoW Change (%)|
World Market Index: US Market
The easing inflation in the US, which has been depicted with the softer-than-expected inflation data released this week, played a significant role in uplifting the market. As the inflation is not as high as expected, investors are expecting no further rate hikes in the near future.
Despite recent encouraging signs of inflation, Boston Federal Reserve President Susan Collins said Friday that more interest rate hikes could be needed.
“I understand the tendency to really enjoy good news, and there was some good news in some of the numbers — and I think that we need to appreciate that. But I don’t see additional firming off the table,” the central bank official told CNBC’s Steve Liesman during a “Squawk on the Street” interview. “I think the key point is we need to really stay the course.”
- Dow Jones
This US index made progress of 1.89% during the week as the market became positive on soft-inflation data. However, the retail sector has been sluggish, and this can be seen in the marginal fall that happened on Friday as the index fell by 0.04% on the day.
2. S&P 500
This broad market index went up by 2.15% during the week and by 0.04% on the last day of the week.
This index made the highest gains, which gained 2.25% this week even when it fell by 0.04% on Friday.
World Market Index: European Market
The European market this week was highly buoyant, with gains pouring in from multiple sectors. The GDP in the third quarter has been stable, which influenced the overall market to go up.
On a WoW basis, this index has gained 1.95%, while on Friday itself, it gained 1.24%. Apart from the positive economic data and no further rate hike expectations, the quarterly results are also adding fuel to the market.
Like FTSE, this index has increased by 2.68% during the week and 0.91% on Friday.
With a rise of 4.49% during the week, DAX is the highest-gaining index in the European markets. However, it only gained 0.83% on the last day of the week.
World Market Index: Asian Market
Now, coming to the Asian Market, a drop in US treasury yields and crude oil prices, which are cooling off due to declining demand for oil from the US, has given the required boost to investors. In addition, the fall in the US dollar is also playing a significant role in the market movement.
- Gift Nifty: This global index tracking Indian stocks has gained 1.11% during the week and 0.13% on Friday as the Indian stock market declined on the last day of the week.
- Nikkei 225: This Tokyo stock exchange has gained one of the highest among all the major indices globally this week. It has gained 3.12% on a WoW basis while 0.48% on Friday.
- Straits Times: On Friday, this Singaporean stock market index declined 0.27%, as Wall Street was sluggish and even on a WoW basis; the index gained marginally by 0.58%.
- Hang Seng: Hong Kong-based stock index Hang Seng lost 2.17% on Friday as one of the heavyweight stocks – Alibaba declined by 10%. However, the weekly performance remained positive; on a WoW basis, the index gained 1.46%.
- Taiwan Weighted: This index increased by 3.15% during the week and 0.22% on Friday.
- KOSPI: Another week of gains for this index. This week, it gained 2.50%, and it is the third consecutive week the index has been gaining. However, on Friday, it fell by 0.74%.
- SET Composite: This Korean index has gained 1.89% on a WoW basis but only 0.03% on Friday before the market closes for the weekend.
- Jakarta Composite: This index made significant progress during the week, gaining around 2.47%, and on Friday, it went up by 0.28%.
- Shanghai Composite: The Shanghai market was sluggish this week and just advanced 0.51%.
With cooling down treasury yields, crude oil prices in the Asian and European markets are in full upswing. Though Wall Street continued to rise, it was sluggish this week. The IT sector has been one of the major forces behind the US market going up apart from its economic data.
I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.