Last week, European stock markets fell across the board, with the FTSE 100 index in the UK falling more than 1%. The three major US stock indexes have mixed gains and losses, with the Dow Jones Industrial Average falling more than 2%, falling over 900 points. Microsoft rose over 2%. Nvidia rose over 15%, reaching a historic high, with a weekly market value increase of $344.7 billion (equivalent to RMB 2496.7 billion).
This week, the market will welcome important data. On May 31st, the National Bureau of Statistics will release May manufacturing/non manufacturing and comprehensive PMI data. On May 31st, the "Federal Reserve's favorite inflation indicator" - the core PCE price index data for April in the United States will be released. On May 31st, the May CPI data for the Eurozone will be released.
The Dow Jones fell over 900 points, while Nvidia hit a historic high
In the past week, major European stock indices have generally fallen, with the FTSE 100 index in the UK falling 1.22%, the CAC40 index in France falling 0.89%, the DAX index in Germany falling 0.06%, and the STOXX50 index in Europe falling 0.57%.
The three major US stock indexes have mixed gains and losses. The Dow Jones Industrial Average fell 2.33% last week, falling over 900 points. The Nasdaq and S&P 500 indexes rose 1.41% and 0.03% respectively last week.
Last week's rise and fall in important overseas stock indices
Last week, major technology stocks in the US fluctuated, with Microsoft, Apple, Nvidia Meta has increased by 2.37%, 0.06%, 15.13%, and 1.34% respectively, while Google A and Amazon have fallen by 0.61% and 2.14% respectively. Nvidia has performed exceptionally well in the market, reaching a new historical high with a market value exceeding $2.6 trillion and a weekly increase of $344.7 billion (equivalent to RMB 2496.7 billion). Since the beginning of this year, Nvidia has accumulated an increase of 115%.
For the US stock market, Binky Chadha, Chief US Equity and Global Strategist at Deutsche Bank, stated that as long as the economy and corporate profits are growing, even in the face of longer periods of high interest rates, the stock market can remain strong.
May 27th is Memorial Day in the United States, and the US stock market and other financial markets will be closed as a result.
Heavy data will be released
This week, there has been a lot of heavyweight data and events. China's May PMI data, US April core PCE price index data, and Eurozone May overall CPI data will be released. Starting from May 28th local time, the US stock trading settlement system will undergo significant changes.
Specifically, on May 31st, the National Bureau of Statistics will release May's manufacturing/non manufacturing and comprehensive PMI data, It is worth paying attention to whether PMI data can be in an expansion range for three consecutive months.
On May 31st, the "Federal Reserve's favorite inflation indicator" - the core PCE price index data for April in the United States will be released. The reason why the PCE Price Index is said to be the "Federal Reserve's favorite inflation indicator" is that a US government report suggests that when Federal Reserve officials discuss their 2% inflation target, they are referring to the PCE inflation index, not CPI. The Federal Reserve believes that PCE data is better than CPI data because it better reflects current prices and actual consumption expenditure patterns. This data will affect the market's speculation about the Federal Reserve's expected interest rate cut, which in turn will affect the US stock market.
Jiaxin Wealth Management stated that the upcoming release of the US April core PCE price index will serve as a short-term catalyst for market trends. While paying attention to inflation indicators and the trend of US bond yields, it is recommended that investors remain cautious.
On May 31st, the May CPI data for the Eurozone will be released. Economists predict that the eurozone's CPI inflation may accelerate to 2.7% in May, marking the first time since July last year that it has stopped slowing.
In addition, the US stock trading settlement system will undergo significant changes. Starting from May 28th local time, the settlement period for US stock trading will be shortened from T+2 to T+1. At present, the US stock market adopts a T+0 trading system, but implements a T+2 settlement and delivery system, which means that investors can buy a stock and sell it on the same day, but the settlement of the transaction is not immediately completed. The US Securities and Exchange Commission stated that a shorter settlement window means lower margin requirements for brokers, and the risk of high trading volume or volatility forcing brokers to restrict trading will also be reduced.