Stocks
Asian Markets Tread Lightly Amidst Lackluster Consumer Confidence
Asian markets showed limited movement on Wednesday following the release of uninspiring consumer confidence data. The subdued sentiment was influenced by statements from US Federal Reserve officials and upcoming economic indicators.
On Tuesday, global stocks mostly gained ground, despite reports indicating a lack of optimism among consumers in the US and Germany. The Conference Board revealed a larger-than-expected decline in US consumer confidence for February, highlighting concerns about the labor market and the political environment. In Germany, consumer outlook remained pessimistic, and intentions for significant purchases showed little change from the previous month, as reported by pollster GfK.
US stocks closed with minimal changes on Tuesday, with investors awaiting crucial economic data, including the Federal Reserve’s preferred inflation gauge. The US Personal Consumption Expenditure (PCE) price index, along with consumer income and initial jobless claims data, is scheduled for release on Thursday.
Investors are closely monitoring comments from three Fed officials later on Wednesday, seeking insights into the central bank’s stance on rate cuts. Anticipations for US interest rate reductions have shifted to later in the year due to hotter-than-expected inflation data and policymakers requiring further evidence of progress toward their 2.0 percent inflation target.
Despite a recent chorus of officials expressing concerns, Fed governor Michelle Bowman stated that she expects inflation to decrease while keeping rates unchanged. She emphasized that it is premature to consider rate reductions.
In the Asian markets, Tokyo stocks opened flat, reflecting mixed performance in US shares. Speculation arose among analysts about a potential interest rate hike by the Bank of Japan in April or even sooner, following better-than-expected Japanese consumer inflation data.
Shanghai experienced a positive opening, and other markets such as Seoul, Wellington, Mumbai, Jakarta, and Manila also traded higher. However, Hong Kong, Sydney, Taipei, Singapore, Bangkok, and Kuala Lumpur faced declines.
G20 finance ministers and central bank heads are convening in Brazil to address challenges to the global economy, including conflicts in Ukraine and Gaza, threatening its nascent recovery. Investor attention is expected to shift to Chinese manufacturing data on Friday.
Reviewing the U.S. Stock Markets, the Nasdaq Composite, recorded a decent loss of 1,023 points, reaching a closing value of 16,690 points by the end of the week. Similarly, the S&P 500 index showed a positive trend, losing 240 points to settle at 5,408 points. Meanwhile, DJIA Index experienced a notable hike, adding 1,218 points during the week and concluding at 40,345 points after a week of gaining.
In contrast, Russell 3000 Index saw a loss in week performance, with a slight drop of 141 point to reach 3,077 points by the end of the week.
Moving to Russell 2000 Index, demonstrated a notable lost of 126 points, ending the week at 2,091 points.
In the Outgoing week, the European stock market displayed a mixed performance.
Here is the data on the weekly performance of the European Stock Market, The STOXX Europe 600 index, which is considered a leading benchmark for the European market and covers approximately 90 percent of the market capitalization across 17 countries, reported a loss of 18.49 points to close at 506.56.
The United Kingdom’s FTSE 100, one of the most widely followed indices in Europe, also showed a significant drop, losing 195 points or finishing the session at 8,181.
In Germany, the DAX 30 index, added by 605 points to reach 18,301, while France’s CAC 40 decreased by 278 points to stop at 7,352 at the end of the trading day.
Italy’s FTSE MIB, which covers the top 40 stocks traded on the Milan Stock Exchange, decreased by 1,081 points to 33,291. However, Spain’s IBEX 35, lost by 228 points, to close at 11,173.
A review of South Asian stock markets shows that India’s Bombay Stock Exchange (BSE) index BSE Sensex has lost 1,182 points during the week. At the end of the week, the index stood at 82,365 points. On the other hand, the Nifty-50 index of the country’s National Stock Exchange dropped by 383 points last week. At the end of the week, the index stood at 24,852 points.
Pakistan Stock Exchange Index ‘KSE 100’, added 459 points last week. After a week of losing, the index settled at 79,002 points.
On the other hand, The Sri Lankan stock market index loss, and the Colombo Stock Exchange index ‘ASPI’ decreased by 94 points in a week. After a week the index settled at 10,775 points.
Bhutan’s stock market index ‘BSI’ dropped by 9 points hence the index stood at 1,500 points throughout the whole week. Nepal’s ‘NEPSE’ lost 22 points, therefore the index stands at 2,727 points.
Hence Dhaka Stock Exchange: The benchmark index ‘DSEX’ lost by 75.77 points or 1.31 percent, in the outgoing week. At the end of the week, the index stands at 5,728 points.
