NVIDIA’s Earnings Drove US Stock Markets Down While Favorable European Inflation Drove European Markets Up

The BLOM Stock Index (BSI) compiled by BLOM Invest Bank daily increased weekly by 2.23% to reach 1,874.77 on August 30^th, 2024 up from 1,833.87 on August 23^rd, 2024.

On the Beirut Stock Exchange (BSE), the real estate sector grasped the lion’s share of the BSE’s trading value with a stake of 99.42%, while the banking sector grasped the remaining 0.58% stake. The most noteworthy trades throughout the mentioned period included:

As for the BLOM Preferred Shares Index (BPSI), it remained constant at 27.78 on August 30^th, 2024.

US stock markets fluctuated over the course of the week. S&P 500 and NASDAQ declined by 0.76% and 2.02% respectively, while Dow Jones increased by 0.39%. US decent economic data limited the effect of the 6.4% decrease in NVIDIA share as the quarterly revenues and profits increased with a magnitude less than the lofty forecasts.

Across the Atlantic, European stocks increased over the course of the week. The European markets started the week with increases waiting for NVIDIA earnings. It was then followed with the appealing inflation rates in Germany, followed by French and European Union attractive inflation rates today that extended European markets’ gains.

DAX Germany increased by 1.61% recording 18,933.75 driven by the anticipation that European Central Bank (ECB) is expected to cut rates after appealing inflation data.

Similarly, CAC 40 advanced by 1.42% reaching 7,684.27 powered by strong gains from heavyweight luxury stocks such as LVMH, Hermès, and L’Oréal. Moreover, the preliminary French inflation rate recorded 1.9% in August 2024, the lowest since August 2021, compared to previous month’s rate of 2.3%.

In Asia, Hang Seng equities led the Asian Markets gains this week, with an increase of 2.14% to reach 17,989.07 by August 30^th, 2024 as there is optimism that China meets the 5% GDP growth target. Moreover, Beijing reportedly was considering allowing refinancing around $5.4 trillion in mortgages of homeowners to reduce borrowing costs and stimulate consumption. Likewise, Japanese NIKKEI increased by 0.74% to record 38,647.75 where Japanese equities were supported by technology sector after the optimism in AI in addition to Japan’s robust economy and robust corporate outlook.

In China, stocks dropped by 0.43% and set to decline for the fourth month in-a-row amid market uncertainty about China’s economic outlook with absence of a robust policy support.

The MSCI Emerging Market index declined by 0.31% to reach $1,097.22.

The Arab Stock Market fluctuated this week as Egypt, Qatar and Dubai Financial market equities increased while S&P Pan Arab, Abu Dhabi Securities Exchange, and Saudi TASI dropped.

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