Failing to maintain the positive momentum from the previous week, last week major markets across the globe were either flat or closed with small weekly declines. While inflation is moving away from its firmest period, Investors looked defensive and were mainly concerned about the earnings report, economic slowdown and the pace of further U.S. Fed rate increase.
Let us highlight some of the major movements of the last week:
- The S&P 500 and DJIA (Dow Jones Industrial Average) lost 27.59 and 2.17 points to close at 3,965.34 and 33,745.69 respectively.
- Nasdaq Composite and Russell 2000 also fell by 177.27 and 33.01 points to close over the week at 11,146.06 and 1.849.73 respectively.
- Amid weakened oil demand due to a recent rise in Covid-19 cases in China, for the first time in almost 3 months, on Friday, November 18, the price of U.S. crude oil fell below $80 per barrel, which is actually a decline of more than 13% in the last 2 weeks.
- In Europe, the pan-European Stoxx Europe 600 index gained modestly whereas German’s DAX advanced 1.46% and France’s CAC 40 index rose 0.76%.
- Italy’s FTSE MIB and UK’s FTSE 100 index also added almost the same gain i.e., 0.90% and 0.92% respectively.
- After the UK Finance minister Jeremy Hunt’s announcement of rise in taxes and cuts in Govt. spending, the 10-year Government bond yields rose in the British market.
- Germany’s 10-year bond yield held above 2% considering the expected interest rate hike following the commentary of European Central Bank President Christine Lagarde.
- Japanese equity market index Nikkei 225 and the broader TOPIX went down by 1.29% and 0.54% respectively, after the fresh pressure of the rate of core inflation which rose to a 40-year high in Japan.
- At the same time, the yield on the 10-year Japanese Government bond rose to 0.24% from the previous week’s 0.23%.
- Hong Kong’s Hang Seng Index performed well and gained 3.85% however, the Shanghai Composite Index rose only 0.32% over the week.
- Market got positive sentiments after the 3-hours long meeting between US President Joe Biden and Chinses President Xi Jinping concluded in Bali with agreement to restart negotiations on climate and other significant issues.
In the present Holiday-shortened week, Wednesday is expected to impact the market more as reports from Consumer sentiments data, new home sales and weekly unemployment claims are scheduled. Also, on 23rd Nov’22, minutes will be published after the U.S. Federal Reserve’s meeting. Markets in the USA will be closed on Thursday, November 24, to celebrate and observe the Thanksgiving holiday.
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