Global Markets Weekly: A Comprehensive Overview of Worldwide Economic and Market Trends

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United States



  • Stocks faced their third consecutive week of losses, influenced by geopolitical tensions and concerns over persistent high interest rates.
  • Technology stocks, particularly mega-caps, underperformed due to the impact of rising rates on future earnings valuations.
  • The small-cap Russell 2000 Index saw a decline, moving further into negative territory for the year.
  • Despite geopolitical tensions, the market began on a strong note, influenced by the interception of missiles fired at Israel, but optimism waned as the week progressed.
  • Retail sales in March exceeded expectations, suggesting the Federal Reserve might delay interest rate cuts, possibly until 2025.
  • Housing market data indicated stress, with housing starts, permits, and existing home sales all showing signs of decline.
  • Federal Reserve officials signaled a cautious stance on rate cuts, emphasizing a data-dependent approach.
  • The yield on the 10-year U.S. Treasury note reached its highest level since early November, while municipal and corporate bond markets showed mixed responses to the economic data and geopolitical tensions.

Market Indexes Changes



  • DJIA: 37,986.40 (+0.79%)
  • S&P 500: 4,967.23 (-3.04%)
  • Nasdaq Composite: 15,282.01 (-5.52%)
  • S&P MidCap 400: 2,836.88 (-2.17%)
  • Russell 2000: 1,947.66 (-2.77%)

Europe



  • The STOXX Europe 600 Index ended the week 1.18% lower amid rising Middle East tensions.
  • Major European stock indexes showed mixed performance, with Germany's DAX and the UK's FTSE 100 experiencing declines, while Italy's FTSE MIB posted gains.
  • Government bond yields in Europe increased broadly.
  • UK inflation and wage growth slowed slightly less than anticipated, maintaining concerns over persistent inflationary pressures.
  • European Central Bank officials suggested a potential rate cut in June, keeping a close watch on oil prices and the economic impact of Middle East conflicts.

Japan



  • Japanese stock markets faced significant losses, partly due to concerns over decreased AI-related demand and escalating Middle East tensions.
  • The yield on the 10-year Japanese government bond remained stable, while the yen strengthened slightly amidst geopolitical unrest.
  • Exports continued to grow, supported by the weak yen and a pickup in Chinese demand.
  • Consumer price inflation showed signs of easing, potentially impacting future monetary policy decisions.

China



  • Chinese equities rose following better-than-expected GDP growth in the first quarter.
  • Industrial production and retail sales growth were slower than expected, presenting a mixed economic picture.
  • Fixed asset investment exceeded forecasts, despite a decline in property investment.
  • The People’s Bank of China conducted a net withdrawal of funds from the banking system, indicating a cautious approach to liquidity management.
  • New home prices continued to decline, highlighting ongoing challenges in the real estate sector.

Other Key Markets



  • Israel conducted a "limited" response to Iran's direct attack, marking a significant escalation in regional tensions.
  • Türkiye's central bank prioritized disinflation, indicating a focus on controlling inflation over building foreign exchange reserves.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.