Global Markets Weekly: A Comprehensive Overview of Worldwide Economic and Market Trends

United States

• Stocks faced their third consecutive week of losses, influenced by geopolitical tensions and concerns over persistent high interest rates.
• Technology stocks, particularly mega-caps, underperformed due to the impact of rising rates on future earnings valuations.
• The small-cap Russell 2000 Index saw a decline, moving further into negative territory for the year.
• Despite geopolitical tensions, the market began on a strong note, influenced by the interception of missiles fired at Israel, but optimism waned as the week progressed.
• Retail sales in March exceeded expectations, suggesting the Federal Reserve might delay interest rate cuts, possibly until 2025.
• Housing market data indicated stress, with housing starts, permits, and existing home sales all showing signs of decline.
• Federal Reserve officials signaled a cautious stance on rate cuts, emphasizing a data-dependent approach.
• The yield on the 10-year U.S. Treasury note reached its highest level since early November, while municipal and corporate bond markets showed mixed responses to the economic data and geopolitical tensions.

Market Indexes Changes

• DJIA: 37,986.40 (+0.79%)
• S&P 500: 4,967.23 (-3.04%)
• Nasdaq Composite: 15,282.01 (-5.52%)
• S&P MidCap 400: 2,836.88 (-2.17%)
• Russell 2000: 1,947.66 (-2.77%)

Europe

• The STOXX Europe 600 Index ended the week 1.18% lower amid rising Middle East tensions.
• Major European stock indexes showed mixed performance, with Germany's DAX and the UK's FTSE 100 experiencing declines, while Italy's FTSE MIB posted gains.
• Government bond yields in Europe increased broadly.
• UK inflation and wage growth slowed slightly less than anticipated, maintaining concerns over persistent inflationary pressures.
• European Central Bank officials suggested a potential rate cut in June, keeping a close watch on oil prices and the economic impact of Middle East conflicts.

Japan

• Japanese stock markets faced significant losses, partly due to concerns over decreased AI-related demand and escalating Middle East tensions.
• The yield on the 10-year Japanese government bond remained stable, while the yen strengthened slightly amidst geopolitical unrest.
• Exports continued to grow, supported by the weak yen and a pickup in Chinese demand.
• Consumer price inflation showed signs of easing, potentially impacting future monetary policy decisions.

China

• Chinese equities rose following better-than-expected GDP growth in the first quarter.
• Industrial production and retail sales growth were slower than expected, presenting a mixed economic picture.
• Fixed asset investment exceeded forecasts, despite a decline in property investment.
• The People’s Bank of China conducted a net withdrawal of funds from the banking system, indicating a cautious approach to liquidity management.
• New home prices continued to decline, highlighting ongoing challenges in the real estate sector.

Other Key Markets

• Israel conducted a "limited" response to Iran's direct attack, marking a significant escalation in regional tensions.
• Türkiye's central bank prioritized disinflation, indicating a focus on controlling inflation over building foreign exchange reserves.