Global Stock Market Review

European shares firmly in red prior to Crimea referendum

European stocks dropped last week ahead of Crimea vote. On Sunday, around 96% of Crimeans voted in favor of adding Crimea to Russia, yet the results were not recognized by the U.S., Kiev and the U.S. European firms exposed to Russia suffered the most.

The Euro Stoxx 600 Index declined 2.9% last week to end Friday’s trading session at 322.23 points, down from 331.40 points on 10 March. All 19 sub-industries included in the gauge posted weekly losses, with banking shares plunging the most by 4.1%. However, further losses in the sector were capped by the Italian lender Banca Monte Dei Paschi Siena for which Deutsche Bank AG loaned around 1.5 billion euros during financial crisis n 2008. Banca Popolaire di Milano, another Italian bank, also halted further losses in banking sector with an 8.7% climb.

The German DAX Index dipped 2.3% for the biggest weekly plunge since June 2013, closing last week at 9,056.41 points. The index showed some signs of support on March 12, when German import and export data topped the estimates, yet deteriorating later in the week. The average trading volume of the gauge was around 104 million shares.

The British FTSE 100 Index erased 2.4% or 161.56 points over last week to close at 6527.89 points on 14 March.

U.S. Stock Indices decline amid tensions in Ukraine

U.S. stocks traded firmly in red over the last week, with the S&P 500 Index posting its worst weekly result since January as investors searched for support in haven assets amid Sunday’s referendum in Crimea. In addition, data on Friday showed consumer confidence fell unexpectedly in March to the lowest level in four months.

The S&P 500 Index declined 1.9% on week to close at 1841.13 points on Friday, 36.04 points lower compared to March 10. The average trading volume throughout the last week was at 465 million shares. The gauge hit its highest level ever on March 7 when it ended the trading session at 1878.04. All but one industry groups included in the benchmark index plummeted with industrial shares sliding as much as 2.7%. Among individual performers, Newmont Mining Corporation was the last week’s strongest blue chip, with its stock price rising 6.4% to $26.18 following firm’s announcement of a 5.4% equity interest sale in Paladin Energy. Southwestern Energy Co and NRG Energy followed with a 5.1% and 4.4% weekly advances, capping further losses in the energy sector that was 2% down on week.

The Dow Jones Industrial Average lost 353.01 points during the week ending Barch 14 to close Friday’s trading session at 16,065.67 points.

The Nasdaq Composite was 2.1% down on week to close at 4,245.40 points on March 14.

Japanese Nikkei hits its one-month low

Japanese stocks plummeted on Friday, dragged down by massive selling due to anxieties over the Ukrainian crisis, with the Nikkei average benchmark hitting its one-month closing low. Tokyo shares were hit by selling by individual investors and unwinding of arbitrage positions linked to index futures amid the Yen’s appreciation versus the greenback and the Euro.

The Nikkei 225 average dropped 5.2% to end trading week at 14,327.66, the lowest closing level since February 14. On Thursday, the key market gauge slumped 14.41 points. The broader TOPIX Index closed down 72.68 points, or 5.12 % on week, finishing at 1,164.70 on 14 March. All 33 industry groups included in the TOPIX gauge showed weekly losses, with maritime transport shares dropping as much as 9% for the biggest slump on the index. The measure slumped 5.8 % last week, the most since last year’s June.

Among individual performers, Tasaki & Co Ltd jumped 19.4%, ending the week at 659 yen up from 552 yen on March 10. Whereas, the Seiko PMC Corp sank 20.6% to end Friday’s closing session at 1,298 yen, losing 210 yen of its Monday stock price.

Asia Pacific Shares down on worsening Chinese economy

Asia Pacific stock markets declined on Friday, heading the region’s major benchmark indices to post weekly losses, as investors sold off their shares amid rising concerns over Chinese economic growth and tensions between Russia and Ukraine.

The S&P/ASX 200 Index declined 1.5% on week to close Friday’s trading session at 5,329.40 points, down from its weekly high of 5,412.61 on Thursday. The trading volume gradually declined over the last five trading days and was at 690 million shares on average. All ten sectors in the gauge inched lower with consumer discretionary shares posting the biggest weekly loss. St Barbara Ltd was the last week’s best performing blue chip to trade up from A$0.35 to A$0.39 and cap further losses in the basic materials group. In the meantime, Lynas Corporation Ltd dragged lower the latter sector as the company’s share price lost more than 21% of its share price.

Elsewhere in the region, the NZX 50 Index closed the last trading week at 5,079.32 points, down from 5,111.98 points on Thursday to head the gauge for a weekly decline.

In Hong Kong, the Hang Seng Index slumped 3.3% on week to end at 21,539.49 on Friday after having declined for three subsequent trading days as investment banks downgraded their growth forecasts on Chinese economy.

EXPLANATIONS

Indexes

• Standard & Poor's 500 Index (S&P 500) or (SPX) - U.S. stock market index consisting of the 500 large-cap shares widely traded on the New York Stock Exchange and the NASDAQ.

• Dow Jones Industrial Average Index (INDU) - U.S. stock market index consisting of the 30 large publicly owned U.S. companies , primarily industrials

• NASDAQ Composite Index - U.S. stock market index representing all the stocks that are traded on the Nasdaq stock market, mostly technology and Internet-related

• New Zealand Exchange 50 Gross Index (NZX 50) - stock market index consisting of the top 50 companies listed on the New Zealand Stock exchange

• S&P/ASX 200 - a market-capitalization weighted stock market index of stocks listed on the Australian Securities Exchange from Standard and Poor’s

• Hang Seng Index (HI) - Hong Kong’s stock market index consisting of 48 largest companies listed on the Hong Kong Exchange

• Japan’s Nikkei Stock Average (Nikkei 225 Index) or (NKY) - Japanese stock market index consisting of the 225 largest companies listed on Tokyo Stock Exchange

• FTSE 100 Index (UKX) - U.K. stock market index consisting of the 100 most capitalized U.K. companies trading on the London Stock Exchange

• DAX Index (DAX) - German stock market index consisting of the 30 largest and most liquid German companies trading on the Frankfurt Stock Exchange

• Eurostoxx 600 - stock market index, derived from the Stoxx Europe Total Market Index, consisting of 600 large, mid– and small-sized companies from 18 European countries

Chart

• Correlation - statistical measure of the linear relationship between two random variables. It is defined as the covariance divided by the standard deviation of two variables.

• Historical price changes - chart reflecting the historical price changes of particular region’s stock indices

Indicators

• Industry performance - weekly performance of industries within the particular stock market index

• Top performers - companies within a particular stock market index showing the best or worst weekly performance

• Performance - relative historical change of stock market index value