The global equities market witnessed varied performances this week, with major themes revolving around quarterly corporate reports, the US Federal Reserve’s monetary policy decision, and US Non-farm payrolls data indicating a slowdown.
As of the time of writing, US equities were on track for a weekly loss, with the DJIA remaining flat and the S&P 500 down by 0.7%. The Federal Reserve’s decision to maintain the target range for the Fed funds rate initially signaled a potentially dovish pivot, but concerns lingered amidst mixed corporate results and weaker-than-expected rise in US private payrolls.
In Europe, equities posted mixed performances, with the STOXX Europe down by 0.6% while the FTSE 100 edged up by 0.8%. Investors grappled with digesting mixed corporate reports and the impact of the sluggish US private payrolls data.
Meanwhile, in Asia, sentiments remained positive, with the Nikkei 225 up by 0.8% and the SSE rising by 0.5%. Dovish remarks from the US Federal Reserve buoyed investor confidence, while pledges from China’s policymakers to stimulate economic growth further contributed to the upbeat mood.
The Emerging Markets Index closed higher, bolstered by positive sentiment in China, which saw a 0.5% increase. However, the Frontier Markets index experienced a slight decline, with bearish sentiments prevailing in Iceland (-0.3%) and Kuwait (-0.2%). Overall, global equities markets reacted to a combination of factors this week, including corporate earnings reports, central bank policy decisions, and economic data releases. Market participants remain vigilant as they assess the implications of these developments on the trajectory of global economic recovery and monetary policy decisions moving forward.
