Unfavorable US Economic Data Resulted in Losses in Most Markets Ahead of Unemployment Rate Release

Unfavorable US Economic Data Resulted in Losses in Most Markets Ahead of Unemployment Rate Release

06/09/2024 30/08/2024 % Change
BLOM Stock Index 1,894.61 1,874.77 1.06%
Average Traded Volume 38,250 5,6474 -32.27%
Average Traded Value 2,188,306 3,655,346 -40.13%
Market Cap 19,418,158,893 19,214,743,295

The BLOM Stock Index (BSI) compiled by BLOM Invest Bank daily increased weekly by 1.06% to reach 1,894.61 on September 6th, 2024 up from 1,874.77 on August 30th, 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 98.05%, the banking sector grasped  1.85% stake while the industrial sector grasped the remaining 0.1%. The most noteworthy trades throughout the mentioned period included:

  06/09/2024 30/08/2024 % Change
Solidere (A) 84 84.15 -0.18%
Solidere (B) 88.2 85 3.76%
BLOM Listed 3 2.9 3.45%
BLOM (GDR) 3.3 3.45 -4.35%
06/09/2024 30/08/2024 % Change
BLOM preferred Shares Index 27.78 27.78 0.00%

As for the BLOM Preferred Shares Index (BPSI), it remained constant at 27.78 on September 6th, 2024.

Index Currency 06/09/2024* 30/08/2024 % Change
S&P 500 USD 5,503.41 5,648.4 -2.57%
Dow Jones USD 40,755.75 41,563.08 -1.94%
NASDAQ Comp USD 17,127.66 17,713.62 -3.31%

*prices are as of the time of writing this report

US stock markets dropped over the course of the week due to unpleasant US economic data in which ISM Manufacturing PMI showed a fifth consecutive contraction, the result of “Job Openings and Labor Turnover Survey” (JOLTS) issued by the Bureau of Labor Statistics showing decrease in number of job openings, and weakest increase of private payrolls growth in August since January 2021 with only 99,000 jobs created. These data raised concerns regarding the health of the US economy while waiting for Unemployment rate that will be released later today that will probably affect Federal Reserve’s decision regarding the magnitude of rate cut in their meeting later this month that could reach 50 bps.

Index Currency 06/09/2024 30/08/2024 % Change
DAX EUR 18,460.39 18,906.92 -2.36%
FTSE 100 GBP 8,212.29 8,376.63 -1.96%
CAC 40 EUR 7,407.75 7,630.95 -2.92%
STOXX600 EUR 510.13 525.05 -2.84%

*prices are as of the time of writing this report

Across the Atlantic, European stocks fell over the course of the week as STOXX 600 fell by 2.84%. The European markets is ending the week with a decline for the fourth consecutive session as traders digesting unfavorable US data and waiting for unemployment rate that will be released later today. Moreover, European Central Bank is expected to cut rates next week.

DAX Germany decreased by 2.36% recording 18,460.39 driven by the concerns of the health of the global economy in addition to the decline in the Germany PMI index indicating contraction in German private sector activities.

Similarly, CAC 40 and FTSE 100 declined by 2.92% and 1.96% respectively reaching 7,407.75 and 8,212.29.

Index Currency 06/09/2024 30/08/2024 % Change
NIKKEI JPY 36,391.47 38,647.75 -5.84%
Hang Seng HKD 17,444.3 17,989.07 -3.03%
Shanghai Comp CNY 2,765.81 2,811.03 -1.61%

*prices are as of the time of writing this report

In Asia, Japanese NIKKEI led the Asian Markets losses this week, with a decrease of 5.84% to reach 36,391.47 by September 6th, 2024 due to losses in the US markets in addition to the release of real wages data in Japan which increased in July, therefore increasing expectations that Bank of Japan might increase interest rates.

Likewise, Hang Seng equities fell by 3.03% to reach 17,444.3 by September 6th, 2024 affected by unfavorable US data in addition to the worries that the 5% growth target of China’s GDP might be at risk after the release of August 2024 Manufacturing PMI that reached 6-month low. In China, stocks dropped by 1.61% amid prolonged market uncertainty about China’s economic outlook as China’s manufacturing and services sectors are suffering weak activity.

Index Currency 06/09/2024 30/08/2024 % Change
MSCI Emerging Market USD 1,073.59 1,099.92 -2.39%

*prices are as of the time of writing this report

The MSCI Emerging Market index declined by 2.39% to reach 1,073.59.

Index Currency 06/09/2024* 30/08/2024 % Change
S&P Pan Arab USD 977.84 975.2 0.27%
EGX30 – Egypt EGP 3,1029.7 3,0774.19 0.83%
Saudi Stock Exchange SAR 12,099.49 12,145.15 -0.38%
Qatar Stock Exchange QAR 10,323.32 10,203.04 1.18%
Abu Dhabi Securities Exchange AED 9,452.68 9,284.93 1.81%
Dubai Financial Market AED 4,364.76 4,325.45 0.91%

*prices are as of the time of writing this report

The Arab Stock Market increased over the course of the week except for Saudi Stock Exchange (TASI) dropped.

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