Indices Lead with Impressive 3.15% Growth for 17-21 July 2023

The main drivers of last week’s market indices were influenced by movements in constituent stocks. The Nasdaq declined by 0.61%, while the S&P 500 experienced a modest increase of 0.4%. Meanwhile, the FTSE 100 saw a significant rise of 3.15%, and the DAX also showed a slight increase of 0.7%.

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USA Indices

Nasdaq Composite

Last week’s crude oil inventories showed a result of -0.708M barrels, which is higher than the forecast (-2.440M) but significantly lower than the previous figure (5.946M). This decrease in crude oil inventories had a mildly positive impact on the indices, particularly the Nasdaq Composite.

In the US, initial jobless claims were reported at 228K, lower than both the forecast (242K) and the previous figure (237K), which added slightly positive pressure on the Nasdaq Composite as it is generally considered good for stock markets.

Let’s take a look at some individual stock movements: Amazon (AMZN) decreased slightly from 134.56 to 134.07, Tesla fell from 286 to 279, and Google dropped from 126 to 122. While the overall economic fundamentals were not bearish, some top stocks in the Nasdaq experienced a slight decline, contributing to the index’s minor decrease of -0.61%.

The S&P 500 

Building permits for June were lower at 1.440 million, falling short of both the forecast (1.49 million) and the previous figure (1.496 million). This decline in building permits suggests potential weakness in the construction sector, and it had a slight negative impact on the S&P 500 index. The housing market also showed a bearish outlook, reporting 4.16 million, which was below both the previous number (4.30 million) and the forecast (4.20 million).

The actual results of economic indicators can directly influence the S&P 500, as it represents a broad cross-section of the US economy. Apple’s stock increased from its Monday opening price of 191 to Friday’s opening price of 195. Similarly, Microsoft (MSFT) rose from 145 to 153, Nvidia’s price slightly increased from 462 to 465, and Meta climbed from 307 to 313.

Overall, the fundamentals, as well as constituent stocks, showed a slightly bullish trend, justifying the S&P’s slight rise of 0.4%.

EU and UK indices

FTSE 100

The Consumer Price Index (CPI) for June came in at 7.9%, which was lower than both the previous figure (8.7%) and the forecast (8.2%). This decline in CPI had a slightly positive impact on the FTSE 100, suggesting lower inflationary pressures. Moreover, the stocks within the FTSE index performed well throughout the week. Centrica’s stock price increased from 123 to 126, Barclays rose from 164 to 166, Vodafone Group saw a slight increase from 72 to 73, and Rolls Royce Holdings experienced a significant surge from 145 to 154.

Overall, both the fundamentals and the stocks showed upward trends, leading to a remarkable jump of over 3% in the FTSE.

DAX 

The performance of the DAX is heavily influenced by economic data from Germany and the Eurozone. The Eurozone Consumer Price Index (CPI) matched the forecast at 5.2%, showing improvement from the previous figure of 6.1%. This slightly bullish CPI is positive for the DAX, as it indicates lower inflationary pressure and benefits the Eurozone economy.

During this period, there were notable stock movements within the DAX components. SAP’s stock decreased from 127 to 121, while Siemens remained relatively stable at 15 price levels. Airbus experienced an increase from 132 to 135, likely due to rising stock prices in the transportation sector, as more people are embarking on holidays. Additionally, Allianz SE saw significant growth, rising from 210 to 215, and Merck KGaA (MRK.DE) had a slight rise from 150 to 151.

Despite some stocks experiencing slight declines, including Siemens, the DAX managed to rise by 0.7% overall.

Indices technical weekly performance numbers (USD)

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