Global Markets Face Weekly Decline Amid Blue-Chip Selloff

Global stock markets are likely to extend their weekly losses as disappointing company earnings continue to weigh heavily on investor sentiment. While technology stocks on Wall Street experience significant selloffs, European markets have shown more resilience, particularly towards the end of the week.

Global markets face a downturn as blue-chip stocks, particularly in the tech sector, see intense selloffs. European markets remain more resilient compared to US counterparts. Photo: Unsplash

European Market Performance

Despite the tech sell-off in the US, European equities, especially in Germany and the UK, managed to outperform. On a weekly basis:

• Euro Stoxx 600: Fell by 0.86%

• CAC 40: Slid by 1.43%

• DAX: Rose by 0.70%

• FTSE 100: Increased by 0.38%

Bank Earnings

Earnings from major Eurozone banks presented a mixed picture:

• BNP Paribas: Shares up 1.85%, with net income jumping 21% year-on-year.

• Deutsche Bank: Shares fell 0.79% due to a quarterly loss from Postbank litigation.

Luxury and Technology Sectors

• LVMH: Missed market expectations, shares down 6.58%.

• Hermes: Reported a 13% jump in sales but shares still fell 3.04%.

• ASML: Shares down 6.58% due to continued tech sector selloff.

• SAP: Shares up 6.39%, driven by a strong performance in its cloud business.

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US Market Performance

US stock markets are heading for their third consecutive weekly losses:

• Dow Jones Industrial Average: Fell 0.87%

• S&P 500: Down 1.92%

• Nasdaq Composite: Slid 3.08%

• Russell 2000: Rose 1.67%

Tech Sector

The technology sector led the decline, with major companies reporting disappointing earnings:

• Tesla: Shares down 11.63%.

• Alphabet: Shares fell 5.6%.

Other significant losses in the tech sector included:

• Microsoft: Down 5%

• Nvidia: Down 7.28%

• Amazon: Down 2.12%

• Meta: Down 4.72%

• Apple: Down 3%

Asian Market Performance

Asian equities also faced a downturn:

• Nikkei 225: Tumbled more than 5% due to a stronger Yen.

• Hang Seng Index: Fell to a three-month low, losing more than 2% for the week.

The People’s Bank of China responded to weaker-than-expected GDP data by cutting its 1-year medium lending facility rate by 0.2% to 2.3%, the deepest rate cut since 2020.

Currency and Commodity Markets

• US Dollar: Strengthened against most G-10 currencies.

• Japanese Yen: Surged roughly 4.7% against the US dollar over two weeks.

• Commodity Currencies: Declined due to falling metal and energy prices.

The global markets are navigating a challenging period marked by significant selloffs in blue-chip and technology shares. While European markets display some resilience, the overall sentiment remains cautious amid disappointing earnings reports and broader economic concerns. Investors will need to stay informed and adaptable as these trends continue to unfold.

Source: Euronews