Week #32 — Market Update for August 3-7, 2026

• Indian benchmark indices closed lower on Friday, with the Sensex falling 456 points and the Nifty dropping 65 points due to closing auction session divergence. • Market sentiment was weighed down by volatility in crude oil prices and ongoing geopolitical tensions in the Middle East.

• U.S. stock indices closed the week higher, led by a 5.2% surge in the Nasdaq to 26,691 and a 3.6% increase in the S&P 500 to 7,758. • Market gains were driven by strong earnings reports from companies like SpaceX (SPCX) and the release of the latest payrolls data.

• South Korea's Kospi index experienced a significant surge in turbulence during June, pushing a key volatility gauge to a record-high of 96.9. • The spike was primarily driven by the flushing out of leveraged trades as market instability increased.

• Macro projections suggest a rebound for European laggards, with small caps, telecoms, and real estate expected to outperform by approximately 10% in the coming months. • German equities are projected to see a further 5% outperformance, driven by increased infrastructure spending and a recovery in domestic economic activity.

• European stock markets are experiencing a significant rally, attracting increased interest from money managers and investors. • Market metrics, including earnings, economic growth, sentiment surveys, and fund flows, indicate a broad and systemic shift in performance.

• Europe's STOXX 600 index achieved its fourth consecutive record closing on Friday, fueled largely by a surge in technology stocks. • The rally mirrored strong performance on Wall Street, following U.S. jobs data that indicated a cooling labor market.

• The pan-European Stoxx 600 index closed the week at an all-time high of 660.25 points, marking a 0.3% increase. • The rally was driven by strong corporate earnings and a surprising US nonfarm payrolls report showing job losses in the world's largest economy.

• Liquidators of eFishery’s Singapore holding company have distributed approximately $21.6 million to investors, marking the first confirmed return of capital following a massive accounting fraud. • The distribution comes more than 18 months after DealStreetAsia first reported the fraud, providing a partial recovery for affected stakeholders.

• The combined market capitalization of four of India's top-10 most valued firms increased by Rs 1.43 lakh crore last week. • State Bank of India (SBI) emerged as the biggest winner among the gaining companies during this period.

• Stock market volatility in South Korea is easing as leveraged trades unwind following the implementation of regulatory curbs. • Morgan Stanley estimates that the deleveraging process is now more than half complete, though volatility remains elevated.

• Wall Street investors are focusing on upcoming reports regarding inflation and retail sales for the week of August 8, 2026. • These key economic indicators will provide critical data on price movements across various goods and services.