Weekly Markets Snapshot: A Week of Mixed Fortunes

London: 23 February 2024 (TraderMade): This week saw a rollercoaster ride across global markets, with some surprising winners and losers. Let's delve into the brief descriptions to paint a clearer picture:

Key Takeaways

• Cautiously optimistic sentiment despite regional and asset volatility.
• SEK & NZD shine, while ZAR & NOK depreciate against the US Dollar.
• Asian, European, and US stocks continue upward trend.
• Energy prices hold steady, and precious metals see modest gains.

Forex

Currency Champions

Swedish Krona (SEK)

The SEK enjoyed a 2.7% surge against the USD, reaching its highest level in ten months. This rally was fueled by positive economic data released earlier in the week.

New Zealand Dollar (NZD)

The NZD climbed 2.2% against the USD, supported by rising risk appetite in global markets and improving prices for key commodities exported by New Zealand.

Losers to the Greenback

South African Rand (ZAR)

The ZAR depreciated by 3.3% against the USD. Concerns about rising inflation and the ongoing debt issues of South African utility Eskom weighed heavily on the currency.

Norwegian Krone (NOK)

The NOK lost 0.7% against the USD. This decline was primarily attributed to the outlook for weaker oil prices, which impacted the Norwegian economy heavily.

Global Equities & Indices

Asian Markets: Blossoming East

Japan's Nikkei (JPN225)

The Nikkei surged by 4.2% for the week, closing at a fresh 11-month high of 39,521.5. Optimism surrounding the economic recovery in Japan and positive corporate earnings reports fueled this impressive gain.

Hong Kong's Hang Seng (HKG33)

The Hang Seng rebounded from earlier losses to end the week 5.4% higher, closing at 16,768.5. This positive performance came despite ongoing concerns about the Chinese property sector.

European Markets: Steady Gains

UK's FTSE 100 (UK100)

The FTSE 100 added 1.7% to its value this week, ending at 7,697.2998. This modest gain suggests a more cautious approach from investors in the UK market.

France's CAC 40 (FRA40)

The CAC 40 posted a remarkable 7.1% gain for the week, reaching a record high of 7,953.5. This rally was driven by stellar earnings reports from major companies like LVMH, boosting investor confidence in the French economy.

Germany's DAX 30 (GER30)

The DAX 30 climbed 2.2% for the week, closing at 17,387.5996. While not as dramatic as the French index, this gain still reflects positive sentiment in the German market.

US Markets: Wall Street Records

S&P 500 (SPX500)

The S&P 500 touched a new record high of 5,087.6499, marking a 2.9% increase for the week. This broad index's performance reflects continued optimism about the US economy and corporate earnings.

Dow Jones Industrial Average (USA30)

The Dow Jones smashed its record, closing at 39,127.5, a gain of 5.1% for the week. Strong performances from major blue-chip companies drove this impressive rally.

Nasdaq (NAS100)

The tech-heavy Nasdaq also closed higher, gaining 3.7% for the week to end at 17,989.1016. This positive performance suggests continued investor confidence in the technology sector.

Energy Markets: Oil in a Holding Pattern

Brent Crude (UKOIL)

Brent Crude fluctuated between $81 and $83 per barrel throughout the week, ultimately closing slightly lower at $81.739. This price movement suggests a period of relative stability in the oil market.

WTI Crude (OIL)

WTI Crude followed a similar pattern, trading between $76 and $78 per barrel before settling marginally higher at $77.294. Like Brent, WTI prices appear to be finding a temporary equilibrium.

Natural Gas (NATGAS)Warms Up

Natural Gas defied the trend, surging 7.6% for the week to close at $1.787. This increase was primarily driven by forecasts of colder weather in key consuming regions, leading to higher demand.

Precious Metals: Gold Glimmer and Silver Shines

Gold (XAUUSD)

Gold initially reached a two-week high of $2,034.92 before settling at $2,023.9751, representing a 1.4% gain for the week.

Silver (XAGUSD)

Gained 1% for the week, closing at $22.7305.

Summary

Despite some regional and asset-specific volatility, the global market sentiment remained cautiously optimistic this week. The US Dollar weakened against some major currencies, while European and US stocks continued their upward climb.

Energy prices held relatively steady, and precious metals saw modest gains. As we move forward, key economic data and geopolitical developments will continue to shape market direction.