Bear claw on US market; Euro stocks gained the most in 4 weeks

By
Esan Bolaji
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Positive Performance Sustained In Local Bourse
Domestic Bourse Starts The Week In Red

Performance was mixed across major global stock markets within our coverage this week, as investors respond swiftly to development in the immediate environment.

In the US, there was “deep bear claw” on tech stocks (the major driver of the US stock market buoyant performance post-COVID-19 lockdown period) as a result of the weaker than expected consumer spending data in August.

As a result, the three broadest stock market indicators in the U.S., the DJIA, the S&P 500, and the NYSE Composite indices to shed -1.66%, -2.51%, and -1.12% w/w respectively.
Conversely, stock markets in Europe see the brightest week in more than four weeks as stronger-than-expected economic data for August 2020 and hope of further stimulus support by the European Central bank (ECB) caused investors to invest more in equity assets. As a result, the German DAX, the UK FTSE 100, and France CAC 40 all gained 3.02%, 4.23%, and 1.70% w/w respectively.
In Asia markets, save for India S&P BSE and Japan Nikkei 225 which gained 1.30% and 0.87% w/w, other Asia stock market indices under our coverage ended the week in red, with China’s Shanghai Composite Index leading the park with a -2.83% w/w loss.
Despite the risk posed by the Covid-19 pandemic, we expect the route witnessed in the U.S. and some Asia stock market to subdue in the coming week, as fiscal and monetary authorities rolled out new policies that will support improved consumer demand.

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