Twenty-three developed markets lost 1.4% on average this week, broadly falling for a second week. Twentyone markets fell, including 13 by at least 1% and eight (France, Germany, Sweden, Switzerland, Spain,
Denmark, Italy, Ireland) by at least 2%. Hong Kong and Singapore each rose 0.5%.
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.
Mixed Week, but Growth Still Improving
Twenty-three developed markets lost 1.0% on average this week, falling for the first week in the last four. After all markets rose at least 1% last week, this week 16 markets fell, including 14 by at least 1% and five (France, Sweden, Spain, Italy, Portugal) by at least 2%. Of the six markets that rose, Hong Kong (1.8%) and Canada (1.0%) gained the most.
At Last, A Strong Week for Growth
Twenty-three developed markets gained 2.8% this week, rising for the third week in a row. All markets gained, including 16 by at least 2% and 10 (France, Germany, Hong Kong, Switzerland, Spain, Finland, the Netherlands, Ireland, Austria, Belgium) by at least 3%. Only Japan (0.6%) gained less than 1%.
Markets Pause Selloff but Risk Remains Skewed to the Downside
Twenty-three developed markets gained 0.4% on average for a second week. Sixteen markets gained, including six (Japan, Sweden, Denmark, Finland, Ireland, Singapore) by at least 1%. Six markets fell by 0.5% on average, and only Israel lost at least 1%.
Markets Pause Selloff but Risk Remains Skewed to the Downside
Twenty-three developed markets gained 0.4% on average for a second week. Sixteen markets gained, including six (Japan, Sweden, Denmark, Finland, Ireland, Singapore) by at least 1%. Six markets fell by 0.5% on average, and only Israel lost at least 1%.
Global Sector Strategy with Kenley Scott – May 12, 2016
Kenley Scott, lead sector strategist for O’Neil Equity Research, will give an overview of market conditions across the globe. Focusing on US markets, he will discuss the stalling action, increase in distribution days, and shakiness in growth. Lastly he will look at retail as a sector-of-interest in the US, and at the Australian market for international ideas.
Global Losses Accelerate, Odds of Correction Increase
Twenty-three developed markets lost 2.6% on average, with selling pressure increasing following last week’s losses. Twenty-one markets fell, including 15 by at least 2%, 10 by at least 3%, and four (Hong Kong, Italy, Austria, Belgium) by at least 4%. New Zealand rose 1.1% and Australia fell 0.5%.
Market View
U.S. indices continued to fall this week, led again by the Nasdaq, which has now declined for three straight weeks. Distribution has also risen to elevated levels. There are now eight distribution days on both the S&P 500 and the Nasdaq, enough for us to shift both indices to Under Pressure. The S&P 500 is now testing its first level of support at the 50-day moving average, while the Nasdaq is trading 2% below that level.
As Distribution Rises Globally, Are Markets Set to Correct?
Twenty-three developed markets lost 1.7% on average, the first week of substantial losses in the past five weeks. Nineteen markets fell, including 16 by at least 1% and five (Japan, France, Germany, Denmark, Israel) by at least 3%. Norway (1.7%), Ireland (0.6%), and Canada (0.4%) gained.
Market Resume Gains, U.S. Rally Beyond Norm
Twenty-three developed markets gained 1.3% on average this week. Twenty-one markets advanced, including 15 by at least 1% and six (Japan, Germany, Spain, Italy, Norway, Austria) by at least 2%. Ireland (-1.5%) and the U.K. (-0.7%) fell on the week.
