Market update: 27 August 2024
Last week saw the Australian stock market finish on a high note, with the ASX 200 closing up 0.7%. This came after a strong showing from several major companies, such as WiseTech, which saw a remarkable 28% gain by week’s end. Despite a slight dip on Friday that ended a 10-day winning streak, the overall sentiment remains optimistic as the market eagerly anticipates the final week of the Australian reporting season. With many companies yet to release their full-year earnings, investors are closely watching to see if the positive momentum will continue.
US equity markets also enjoyed a strong week, with the S&P 500, Nasdaq, and Dow Jones each gaining over 1%. A key driver of this rally was Fed Chair Powell’s speech at Jackson Hole, where he signaled that a rate cut in September is likely, reinforcing sentiments from the July FOMC meeting minutes. Powell’s dovish tone has provided a boost to market confidence, and with the potential for further rate cuts throughout the year, investors are cautiously optimistic. Next week, all eyes will be on Nvidia’s earnings, which could set the tone for the broader tech sector.
In Europe, markets mirrored the positive trends seen elsewhere, with the Euro Stoxx 50 and FTSE both finishing the week in the green. Economic data from the Eurozone and the UK pointed to modest growth, while Sweden’s central bank took a more cautious approach by cutting its policy rate by 25 basis points. Meanwhile, Asian markets presented a mixed picture; Japan’s Nikkei managed a 0.8% gain amidst signals of potential rate hikes, while Chinese stocks faced pressure from disappointing earnings and lacklustre economic data. As we move into the coming week, global markets will continue to be shaped by key economic reports and central bank actions.
Published 27/8/2024
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