This past week has shown broad declines across major asset classes, challenging the optimism around peaking inflation and potential central bank easing. 

In brief:


U.S. Economic Indicators: The S&P 500 and Nasdaq hit record highs due to cooling inflation expectations and possible Federal Reserve rate cuts. However, following news that the Biden administration is considering tighter restrictions on semiconductor exports to China, the Nasdaq faced a sharp decline, dropping 3.7%. 

Global Market trends: Despite easing inflation, economic data suggests a slowing global economy. Major stock indices around the world experienced notable declines; Japan's Nikkei 225 slumped by 2.71%, while European stocks, including the Euro Stoxx 50, German DAX, and French CAC 40, dropped by 0.7% to 1.1%. Emerging market stocks were flat.

Australian Market Trends Downward: The S&P/ASX 300 ended the week down by 1.40%. Energy stocks took the hardest hit, dropping by 6.45%. The S&P/ASX Small Ordinaries, representing smaller cap stocks, fell by 2.71%.


Read the article: www.investsense.com.au/industry-articles/a-week-of-contrasts-in-global-markets-from-record-highs-to-renewed-growth-concerns 


Join the InvestSense Community to receive weekly insights from our investment team: https://www.investsense.com.au/investsense-insights