Global Market Recap – 29th January 2024

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Here’s the latest and most significant news shaping the global markets this week.

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The US dollar had a mixed week, initially boosted by a higher-than-expected 3.3% Q4 GDP growth.

Despite this, inflation data released on Friday showed a modest rise in December, hinting at the continuation of the downward inflation trend. US Durable Goods Orders remained steady, while Initial Jobless Claims increased to 214,000.

Market sentiment is strongly inclined towards the Federal Reserve (Fed) keeping interest rates unchanged at 5.5% in Wednesday’s meeting, with expectations fully factored in for a rate cut by May.

The euro weakened against the USD, influenced by the ECB's unchanged rates and strong US data. The US dollar index ended the week at 103.47, marking a 0.23% weekly increase.

Major indexes continued their upward trend for the third consecutive week, reflecting a balance of economic optimism and individual stock volatility.

The Dow Jones Industrial average rose by 0.57%, the NASDAQ increased by 0.30%, and the S&P 500 saw a gain of 0.94%.

This upward trend reflects an optimistic economic outlook, supported by the latest S&P Global Composite PMI Index, which indicated expansion in both manufacturing and services sectors.

Additionally, new home sales in December rebounded, signaling strength in the housing market.

US oil prices rose for the second consecutive week, reaching their highest close since November. Key drivers included robust US economic growth data, and cooling inflation, which fostered a positive demand outlook.

Additionally, China's economic stimulus measures contributed to this bullish sentiment. Geopolitical tensions, particularly in the Middle East, also played a role in heightening supply concerns.

West Texas Intermediate (WTI) concluded the week at $78.23, marking a significant 6.50% weekly gain.

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