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After their worst day in years, global stocks record their best week in nine months: Global stocks saw their best week since November of last year after better-than-expected inflation figures from the US helped calm recession fears triggered by “alarming” US economic data, the Financial Times reports. This comes as markets rebound from a “brutal” sell-off during the first week of August that saw some indexes hit multi-year lows and wiped USD tns from global stock markets.
There was relief on Wall Street, with the benchmark S&P 500 ending a four-week losing streak to close the week up 3.9%. The gains echoed across the board, with the Nasdaq gaining 5.2% and the Dow Jones rising by 2.9% during the week.
The rebound wasn’t just felt in the US, with Japanese stocks in particular also having a good week after facing a dramatic sell-off only a few days before. The country’s Nikkei index rose 7.9% over the week after having fallen 12.4% during the global sell-off — its worst crash since 1987. European stocks also had a good week, with the Stoxx Europe 600 index finishing up 2.4% by the end of trading on Friday..
Analysts seem pretty confident on what lay behind the rebound, with the FT explaining that the rally was “aided by data that suggested the US economy was holding up better than had been feared.” On Wednesday, the Bureau of Labor Statistics data showed US inflation falling under the 3% mark for the first time since March 2021 and a day later there were reports of strong retail sales in the US and lower-than-forecasted jobless claims.
Market volatility is the name of the game, with single data points able to swing the entire narrative about global markets, Blackrock’s global chief investment strategist Wei Li is quoted as saying by the salmon-colored paper.
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TASI |
11,915 |
+0.6% (YTD: -0.4%) |
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MSCI Tadawul 30 |
1,486 |
+0.3% (YTD: -4.1%) |
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NomuC |
25,761 |
+0.9% (YTD: +5.0%) |
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USD : SAR (SAMA) |
USD 3.75 Sell |
USD 3.75 Buy |
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Interest rates |
6.5% repo |
5.5% reverse repo |
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EGX30 |
29,629 |
+0.2% (YTD: +19.0%) |
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ADX |
9,286 |
+0.5% (YTD: -3.1%) |
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DFM |
4,243 |
+0.6% (YTD: +4.5%) |
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S&P 500 |
5,554 |
+0.2% (YTD: +16.5%) |
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FTSE 100 |
8,311 |
-0.4% (YTD: +7.5%) |
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Euro Stoxx 50 |
4,841 |
+0.7% (YTD: +7.1%) |
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Brent crude |
USD 79.68 |
-1.7% |
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Natural gas (Nymex) |
USD 2.12 |
-3.4% |
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Gold |
USD 2,538 |
+1.8% |
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BTC |
USD 59,431.60 |
+0.3% (YTD: +40.5%) |
THE CLOSING BELL: TADAWUL-
The TASI rose 0.6% on Thursday on turnover of SAR 6.8 bn. The index is down 0.4% YTD.
In the green: Cenomi Retail (+9.9%), SASCO (+9.9%) and Red Sea (+9.9%).
In the red: Talco (-1.7%), SRMG (-1.6%) and Rasan (-1.6%).
THE CLOSING BELL: NOMU-
The NomuC rose 0.9% on Thursday on turnover of SAR 31.6 mn. The index is up 5.0% YTD.
In the green: Al Rasheed (+16.9%), Leaf (+10.0%) and Banan (+9.8%).
In the red: Tadweer (-6.3%), FAD (-6.0%) and United Mining (-5.2%)
CORPORATE ACTIONS-
Savola Group shareholder Abdullah Mohammed AlRabea’s 8.2% stake in the company will be transferred to Mohammed Abduallah AlRabea & Partners, a company wholly owned by the heirs of AlRabea, according to a disclosure to Tadawul. The stake transfer comes after AlRabea’s passing.
