Market update: 8 October 2024
The Australian markets had a challenging week, with the ASX 200 index declining by 1.45%. Major banking stocks like Commonwealth Bank of Australia (-1.96%), National Australia Bank (-2.46%), Westpac Banking Corporation (-4.98%), and Australia and New Zealand Banking Group (-2.76%) were among the top losers. Mining giants BHP Group (-3.00%) and Rio Tinto Group (-4.22%) also faced significant losses, likely due to concerns over the Chinese economy.
US market developments
The US markets had a mixed week, with the Dow Jones marginally up by 0.05%, while the S&P 500 and NASDAQ saw minor declines of 0.20% and 0.28%, respectively. The US Energy sector was the top performer, gaining 6.13%, possibly due to heightened tensions between Israel and Iran, which could disrupt oil supplies. However, the US Real Estate sector took a hit, falling by 2.57%.
Global market trends
European markets had a challenging week, with the DAX and CAC 40 declining by 1.06% and 1.24%, respectively. The FTSE 100, however, managed to gain 0.53%. In Asia, the Nikkei 225 was the top performer, rising by 1.89%, while the Shanghai Composite remained flat. The Japanese yen strengthened against the US dollar by 2.84%, possibly due to a stronger-than-expected US jobs report.
Key takeaways for Australian investors
The performance of Australian banking and mining stocks is likely to remain a key focus for investors, given their significant weight in the ASX 200 index. The ongoing tensions between Israel and Iran, as well as the health of the US economy, may also have an impact on the Australian markets in the coming weeks. Investors should keep an eye on the Chinese economy, as any slowdown could have ripple effects on the Australian markets, particularly in the mining sector.
All financial returns are price returns sourced from Yahoo Finance, covering the period from 2024-09-27 to 2024-10-04.
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