Twenty-two developed markets fell 0.9% on average, breaking a string of seven consecutive weekly gains. Twenty-one are in a Confirmed Uptrend (including three Under Pressure).
Author: Kenley Scott
Kenley Scott is a senior equity analyst and sector strategist covering the APAC region and the Energy sector. He is a member of the Global Focus List Committee, which approves all equity recommendations for developed, emerging, and frontier markets. Kenley also writes the Global Sector Summary, part of the Sector Strategy service, which identifies emerging sector strength and weakness across 46 countries every week. After working as a commodities broker, Kenley joined the firm in July 2006. He has a B.S. in Statistics from the University of California, Riverside and also holds a Series 65 securities license.
Global Sector Commentary
Twenty-three developed markets gained 0.5% on average for a seventh week of gains. Twenty-two are in a Confirmed Uptrend (including two Under Pressure), an increase of two from the prior week.
Japan (2.4%) continued to lead, pushing further into 21-year highs. Six other markets (Germany, Australia, Spain, Norway, Italy, Switzerland) gained at least 1% this week. In the U.S., the Dow Industrials and S&P 500 indices gained for an eighth consecutive week.
Twenty-three emerging markets fell 0.3% on average. Twenty are in a Confirmed Uptrend, the 45th week with a majority, and an increase of two from last week. Of the 20, five are Under Pressure.
APAC markets rose solidly, led by South Korea (2.5%), India (1.6%), Indonesia (1.1%), and Taiwan (0.9%), all of which made new all-time highs. The average was hurt by Brazil (-3.6%), China (-2.4%), and Mexico (-2.3%), which are all either Under Pressure or in a Downtrend.
U.S. Technology Widens Lead
Twenty-three developed markets gained 0.5% on average for a fifth week of gains. Nineteen are in a Confirmed Uptrend (including two Under Pressure), an increase of one from the prior week.
Global Sector Commentary
Twenty-three developed markets gained 0.3% on average for a fifth week of gains. Eighteen are in a Confirmed Uptrend (including two Under Pressure), the same as the prior week.
Developed APAC markets outperformed for a third week, led by Australia (1.4%) and Japan (1.4%). Japan is now at 21-year highs and has gained for the past 14 consecutive days. U.S. indices shook off a weak start to trading on Thursday and ended the week up for its sixth consecutive week of gains (S&P 500 and DJIA). EMEA markets lagged overall, but Denmark and Finland gained at least 1% apiece. Twenty-three emerging markets fell 0.3% on average. Nineteen are in a Confirmed Uptrend, the 43rd week with a majority. Of the 19, three are Under Pressure, an increase of one
from last week.
Seven markets (China, Poland, Russia, Thailand, Egypt, Greece, Colombia) lost at least 1% Meanwhile, Turkey was the sole market to gain at least 1%.
Global Sector Commentary
Twenty-three developed markets gained 0.4% on average for a fourth week of gains. Eighteen are in a Confirmed Uptrend (including two Under Pressure), an increase of two from the prior week.
All 23 markets have posted gains over the trailing four weeks and are up 3% on average. The U.K., Japan, Germany, Norway, Canada, Sweden, and Portugal have gained 4-6% apiece. Twenty-three emerging markets gained 1.1% on average. Nineteen are in a Confirmed Uptrend, the 42nd week with a majority. Of the 19, two are Under Pressure, a decrease of four from last week.
Eleven markets gained at least 1% and six (China, South Korea, Turkey, Poland, Hungary, Greece) gained at least 2%. India, Thailand, and the Philippines gained 1.6- 1.8% apiece.
Global Markets Broadly at 52-Week Highs
Twenty-three developed markets gained 0.7% on average. Fourteen are in a Confirmed Uptrend, the same as last week.
Global Sector Commentary
Twenty-two developed markets gained 0.6% on average. Fourteen are in a Confirmed Uptrend, an increase of three from last week.
Global Sector Commentary
Twenty-two developed markets gained 0.9% on average, with about half of the markets closing above the average market gain. Eleven are in a Confirmed Uptrend, of which three are Under Pressure.
The Japanese market has been under some pressure for the last few months. However, on September 19, it emerged from a three-month lull, with the Nikkei 225 and TOPIX surging 2% and 1.8%, respectively, on above average volume. Japan’s market status was upgraded to Confirmed Uptrend.
Twenty-three emerging markets were flat on average. Markets paused after average gains of 2.5% over the previous three weeks. Twenty one are in a Confirmed Uptrend (with four Under Pressure), the 39th week with a majority.
Brazilian equities recorded their first weekly loss in two months, down 0.2% through Thursday. Despite this week’s decline, the Bovespa index remains in a Confirmed Uptrend, trading near all-time highs. Leading sectors include Health Care, Retail, and Consumer Cyclical. Meanwhile, the Basic Material, Energy, and Consumer Staple sectors continue to gain strength over the last four weeks.
Global Energy Sector
We have been tracking a potential bottom in the broad Energy sector (WS002) since late June. A break above the sector’s 10-WMA in late July was short-lived, as it failed to hold the level and fell to new year-to-date lows by mid-August. However, it did not break to far below June lows, instead putting in a second bottom in late August.
While this has been a somewhat frustrating process, when we look at the overall picture versus the S&P 500, the sector is in line with a longer-term process of bottoming
Global Sector Commentary
Twenty-three developed markets rose 1.1% on average and 11 are in a Confirmed Uptrend, which breaks a streak of 57 consecutive weeks with a majority. Twenty-three emerging markets rose 0.7% on average and 18 markets are in a Confirmed Uptrend, the 39th week with a majority.
Japan led developed markets with a 3.3% gain, retaking both its 40-WMA and its 10-WMA. Most of Europe bounced for a second week but a majority of markets remain in a Downtrend. The U.K. fell 2.2% this week and joined the group of markets in a Downtrend. The U.S., Japan, and Hong Kong are the major markets that are most constructive.
Emerging market strength continues. Brazil, Thailand, and the Philippines, each made new all-time highs this week. Two year-to-date leaders, South Korea and India, retook respective 10-WMAs this week.
