Global Markets Weekly: A Comprehensive Overview of Financial Shifts and Economic Indicators

United States

• Stocks experienced a general decline over the week, influenced by unexpected inflation data and signs of slowing consumer spending.
• The Dow Jones Industrial Average was a notable exception, hitting a record high mid-week before retreating.
• Energy stocks gained on rising oil prices, while technology stocks, particularly chipmakers like NVIDIA, faced declines.
• Consumer Price Index (CPI) for February rose by 0.4%, aligning with forecasts. However, core prices exceeded expectations slightly, also increasing by 0.4%.
• Producer Price Index (PPI) for February showed a 0.6% increase, doubling the anticipated figure and marking a six-month peak.
• Retail sales in February increased by 0.6%, missing expectations, with a notable decline in online sales.
• Consumer sentiment, as per the University of Michigan, showed a slight dip, reflecting mixed economic signals.
• The bond market reacted to the inflation data, with the yield on the 10-year Treasury note reaching its highest since late February.
• Municipal bonds outperformed Treasuries, with a surge in primary issuance volume.

Market Indexes Changes

• DJIA: 38,714.77 (-7.92, +2.72% YTD)
• S&P 500: 5,117.09 (-6.60, +7.28% YTD)
• Nasdaq Composite: 15,973.17 (-111.94, +6.41% YTD)
• S&P MidCap 400: 2,923.76 (-28.63, +5.11% YTD)
• Russell 2000: 2,039.31 (-43.40, +0.60% YTD)

Europe

• The STOXX Europe 600 Index saw a 0.31% increase, marking its eighth consecutive weekly gain.
• Notable index movements included France’s CAC 40 (+1.70%), Italy’s FTSE MIB (+1.61%), and Germany’s DAX (+0.69%).
• The UK’s unemployment rate slightly rose to 3.9%, with wage growth excluding bonuses dropping to 6.1%.
• UK GDP showed a 0.2% increase in January, suggesting potential recovery signs.
• ECB officials hinted at possible interest rate cuts by June, aiming to address inflation while supporting economic growth.

Japan

• The Nikkei 225 and TOPIX indexes reported losses of 2.5% and 2.1%, respectively.
• Speculation about the Bank of Japan (BoJ) ending its negative interest rate policy increased, influenced by significant wage rise announcements.
• The yen weakened against the USD, while the yield on 10-year government bonds rose, anticipating monetary policy adjustments.
• Revised GDP figures indicated Japan avoided a technical recession in the last quarter of 2023.

China

• Chinese stock markets saw gains, with the Shanghai Composite and CSI 300 indexes up by 0.28% and 0.71%, respectively.
• Consumer Price Index (CPI) for February showed a 0.7% increase year-over-year, marking the first positive reading since August 2023.
• The Producer Price Index (PPI) fell by 2.7% year-over-year in February, indicating continued deflationary pressures.
• Property prices continued to decline, with new home prices dropping by 0.3% in February.
• The People’s Bank of China injected RMB 387 billion into the banking system, with a net withdrawal indicating tightened liquidity.

Other Key Markets

• Brazilian stocks experienced volatility following Petrobras' announcement on dividend payments, impacting overall market sentiment.
• Argentina announced a significant debt rollover, exchanging more than USD 50 billion in short-term debt for longer maturities, signaling confidence in economic policies.
• Argentina's inflation rate for February was reported at 13.2%, below consensus estimates, positively impacting its U.S. dollar-denominated bonds.