Global Markets Weekly: Diverse Economic Indicators and Market Movements Across the Globe

United States

• Stock Market Performance: The S&P 500 Index approached its all-time high, marking its third consecutive week of gains. Other major indexes also saw advances, with value stocks outperforming growth stocks. Notable movements included Walt Disney shares dropping by 9.5% due to concerns over slowing subscriber growth, and Shopify shares plummeting by 18.6% following revenue growth concerns.
• Job Market and Consumer Sentiment: The number of weekly jobless claims rose to 231,000, the highest since August of the previous year, while continuing claims increased to 1.79 million. The University of Michigan's preliminary consumer sentiment index for May fell to 67.4 from 77.2 in April, indicating growing consumer concerns about inflation, unemployment, and interest rates.
• Bond Market: The yield on the 10-year U.S. Treasury note was relatively unchanged, despite heavy primary issuance in both the municipal and corporate bond markets. The bond markets saw strong demand, with new issues often being oversubscribed.
• Market Indexes Changes:
  
  
  • DJIA: 39,512.84 (up 837.16, +4.84% YTD)
  • S&P 500: 5,222.68 (up 94.89, +9.49% YTD)
  • Nasdaq Composite: 16,340.87 (up 184.54, +8.86% YTD)
  • S&P MidCap 400: 2,993.96 (up 64.92, +7.64% YTD)
  • Russell 2000: 2,059.78 (up 24.06, +1.61% YTD)

Europe

• Market Performance: The STOXX Europe 600 Index increased by 3.01%, with Germany's DAX up 4.28%, France's CAC 40 rising by 3.29%, and Italy's FTSE MIB gaining 3.06%. The UK's FTSE 100 reached a new record high with a 2.68% increase.
• Monetary Policy: The Bank of England maintained its key interest rate at 5.25% but hinted at potential easing in June. Inflation is expected to slow more sharply in the coming years.
• Economic Expansion: The UK economy grew by 0.6% in the first quarter of 2024, officially exiting a recession. This growth was supported by the services sector and increased production.
• Sweden’s Interest Rate Cut: Riksbank cut its key interest rate by 0.25% to 3.75%, marking the first reduction since 2016, with potential further cuts expected if inflation slows.

Japan

• Stock Market and Monetary Policy: The Nikkei 225 and TOPIX indexes showed slight weekly losses. Bank of Japan participants turned overwhelmingly hawkish, with potential rate hikes anticipated despite recent economic data showing signs of weakness.
• Yen Depreciation: The yen fell to the high-JPY 157 range against the USD, despite suspected interventions to support the currency.

China

• Stock Market Gains: The Shanghai Composite and CSI 300 indexes rose by 1.6% and 1.72%, respectively. The Hang Seng Index in Hong Kong increased by 2.64%.
• Economic Indicators: Tourism revenue and box-office sales during the Labor Day holiday showed significant increases from the previous year. The Caixin/S&P Global services PMI indicated continued expansion, and trade data for April exceeded forecasts with a notable rise in imports.

Other Key Markets

• Türkiye: Following a credit rating upgrade by S&P Global Ratings from B to B+, the outlook for further upgrades remains contingent on policy adjustments and economic reforms.
• Brazil: The central bank reduced its key interest rate slightly, with a split decision among policymakers reflecting caution due to an uncertain global and domestic economic environment.