Global Markets Weekly Snapshot: Performance Across Regions and Assets

In the United States: Wall Street Keeps Rising

The S&P 500 closed the week up by +2.3%, finishing at 5,490, a new all-time high, with robust performance from large-cap technology stocks. Nvidia continued to drive the market, gaining nearly 4% this week after positive analyst outlooks and strong demand in AI chips. Apple and Microsoft both rose more than 2% each, supported by positive product news and continued enthusiasm for artificial intelligence. The Nasdaq rose +2.6%, also at record levels, as technology, semiconductor, and cloud companies remained the key drivers. The Dow Jones gained +1.8%, reaching 39,400, with financials and industrials contributing to the rise.

Investor flows showed about $20 billion in outflows from US equity ETFs, indicating some portfolio rotation toward bonds and cash as some funds took profits at record highs. US Treasury yields edged lower, reflecting market expectations for a rate cut by the Federal Reserve as early as September. Economic data showed mixed signals: US consumer spending remained solid, but core inflation cooled slightly, boosting expectations for lower rates. The CBOE Volatility Index (VIX) held below 13, its lowest level of the year, reflecting calm in the markets.

• S&P 500: +2.3% for the week, closing at 5,490 (record high)

• Nasdaq: +2.6%, led by Nvidia (+4%), Apple, Microsoft (+2%+)

• Dow Jones: +1.8%, closing at 39,400

• Russell 2000 (small cap): +1.3%

• US equity ETFs: $20 billion in outflows

• 10-year Treasury yield: dropped from 4.28% to 4.17%

• VIX: below 13, lowest in 2025

In Europe: Steady but Positive Markets

The FTSE 100 in London gained +0.5% this week, closing at 8,350, the highest in nearly a year, helped by energy and mining stocks after stable commodity prices. The DAX in Frankfurt rose +0.4%, supported by strong performance in the industrial sector and renewed optimism for Germany’s economic outlook. The CAC 40 in Paris ended the week +0.3% higher, with luxury and consumer stocks showing resilience despite softening retail sales. The Italian FTSE MIB edged up +0.2%, as banks and utilities saw mixed results.

European Central Bank officials signaled that more interest rate cuts are possible this year after the summer, which supported risk appetite. Political uncertainty in France had limited impact this week, as investors focused on improving business sentiment data in the eurozone. The best-performing sectors across Europe were technology, industrials, and healthcare, while bank stocks underperformed slightly.

• FTSE 100 (London): +0.5%, closed at 8,350 (10-month high)

• DAX (Frankfurt): +0.4%, led by Siemens (+2.5%)

• CAC 40 (Paris): +0.3%, LVMH (+1.8%), Kering (+2%)

• FTSE MIB (Milan): +0.2%, banks flat, utilities up

• ECB: signals more cuts possible in 2025

• Eurozone PMI: improved to 51.2 from 50.5

In Asia: Strong Gains Thanks to Global Optimism

Japan’s Nikkei 225 rose +1.4%, finishing at 40,200, with exporters benefiting from a weaker yen and upbeat global outlook. Tech giants like Tokyo Electron (+4%) and Sony (+2%) led the gains. In China, the CSI 300 index climbed +2.6% to 3,720, its best weekly performance since late 2024, as Beijing announced further policy support for the property and technology sectors. Investors welcomed positive news on US–China trade relations, especially in rare earths and semiconductors.

The MSCI Asia Pacific ex-Japan index hit a three-year high as foreign inflows returned to Asian equities, totaling +$857 million this week. In Hong Kong, the Hang Seng added +1.9% with property and internet companies bouncing back. South Korea’s KOSPI advanced +1.5% after strong export figures, especially in chips and electronics.

• Nikkei 225: +1.4%, closed at 40,200 (near all-time high)

• Tokyo Electron: +4%, Sony: +2%

• CSI 300 (China): +2.6%, at 3,720 (best since Nov 2024)

• Hang Seng (Hong Kong): +1.9%, led by Tencent (+3%)

• KOSPI (Korea): +1.5%, Samsung Electronics +2.7%

• Asia ETFs: +$857 million in inflows

Currencies, Oil, and Gold: Notable Moves

The US dollar index declined by -1.4% for the week, reflecting expectations of a Fed rate cut, while the euro strengthened to 1.17 USD, its highest since early 2023. The Japanese yen weakened further, trading above 160 per dollar, which supported Japanese exporters. The British pound hovered near 1.28 against the dollar.

Brent crude oil prices fell by about 10%, closing the week at $66–68 a barrel, as OPEC signaled no further supply cuts and global demand appeared to soften. WTI crude tracked a similar decline. Gold dropped by 1% to remain just above $2,300 per ounce, as investors shifted toward equities, and silver also slipped marginally.

• Dollar Index (DXY): -1.4%, lowest in 3.5 years

• Euro/USD: 1.17

• Japanese yen: above 160 per dollar

• Brent crude: -10%, $66–68/barrel

• WTI crude: -10.5%, $62–64/barrel

• Gold: -1%, above $2,300/oz

• Silver: -0.7%, $28.8/oz

Reasons Behind Market Moves

Global equity markets were boosted by further progress in US–China trade talks, especially on rare earth materials crucial for tech and electric vehicles. The prospect of central bank rate cuts in both the US and Europe encouraged buying in stocks and risk assets. The announcement of a temporary ceasefire in the Middle East reduced energy market volatility and eased geopolitical worries.

In the US, slightly weaker-than-expected inflation data reinforced the narrative of lower rates ahead, prompting a rally in bonds and stocks. In China, new stimulus for property developers and chipmakers helped lift local sentiment. European markets benefitted from stronger-than-expected PMI data and easing concerns over French political tensions.

• US–China trade progress: rare earths, tech cooperation

• Central banks: Fed, ECB rate cut expectations

• Middle East ceasefire: reduced risk for energy and commodities

• US inflation: cooling, boosting rate cut hopes

• China: new stimulus, stronger export data

• Europe: improving PMI, easing political worries

So... A Week of Confidence

• US markets reached record highs, led by technology stocks and falling bond yields.

• European markets rose steadily, with technology and industrials in the lead.

• Asia outperformed, with Japan, China, and South Korea showing strong gains thanks to global optimism and domestic policy support.

• The US dollar weakened, oil prices dropped sharply on supply and demand factors, and gold remained stable above $2,300 per ounce.

• Confidence across markets was driven by expectations of central bank rate cuts, encouraging economic data, and easing geopolitical risks.

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