Weekly Market Update - A Quite Week...

15-Aug-2021 12:31:03
Reading time: 2 min

The U.S. equities were marginally up last week, despite the spread of the Delta variant denting consumer confidence. Both the S&P 500 and the Dow Jones were up by less than 1.00%, while the Nasdaq was marginally down by 0.01%.

Cyclicals and Value stocks led the indices up, while I.T. and communication stocks were in the red. The value index is up 18% this year, despite ups and downs.

The U.S. Senate passed the $ 1 trillion infrastructure package to improve ground transport infrastructure, widen the broadband reach to rural areas and upgrade the electric grid and water systems.

The inflation rate showed signs of easing, as the supply chain bottlenecks are easing out gradually. 

Thanks to the stellar corporate earnings season and sustained Fed support, investors continue to be bullish, despite the disappointing University of Michigan consumer sentiment survey.


European markets continued to rise last week, dismissing worries about rising coronavirus infections in crucial markets and signs of slowing growth in Asia.

  • The STOXX Europe 600 Index was up by 1.25%.
  • France’s CAC 40 Index gained 1.16%
  • Germany’s Xetra DAX Index advanced 1.37%
  •  Italy’s FTSE MIB Index climbed 2.51%. 

The U.K.’s FTSE 100 Index was up by 1.34%, thanks to robust corporate earnings and the British pound’s decline relative to the U.S. dollar. Typically U.K. stocks tend to gain when the pound falls because many companies part of the index are multinationals with overseas revenues.


Last week, China released a five-year blueprint directing increased regulation impacting the economy.

The document signalled Beijing’s intention to increase regulation on national security, technology, monopolies, and education. The new legislation will cover online finance, artificial intelligence, big data, and cloud computing in the technology sector.

Like the U.S., Chinese stocks also recorded modest gains. The large-cap CSI 300 Index added 0.5%, and the benchmark Shanghai Composite Index gained 1.7%.


India’s stock benchmarks rose for the second consecutive week. The S&P BSE Sensex gained 1.08% to 55,437.29. This is the first time Sensex has crossed the 55,000 mark. The 30-stock index had hit a record 55.487.79 in intraday trade.


Bitcoin and other cryptocurrencies continued to rise during the week. Bitcoin is currently trading at $46,754/-


While the valuations look stretched, the pent up savings, liquidity, expanding economy and growing corporate earnings provide the necessary impetus for further growth. As the global economy is well poised for a full reopening, powered by the support of Central banks and strong consumer demand, expert consensus is that there is still plenty of mileage left. 

Any potential corrections are being viewed as buying, or rebalancing, opportunities.

Goal-based investing, prudent asset allocation in line with risk appetite and market sentiments, periodic review and rebalancing are proven mitigants to market risks.

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