All twenty-two developed markets were positive for the week, gaining 3.1% on average. Four markets gained more than 3% (Belgium, the Netherlands, Norway, and Portugal), five markets gained more than 4% (Finland, France, Hong Kong, Germany, and Singapore) and two markets gained more than 5% (Italy and Spain). Japan was the only market to gain more than 6%.
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.
Distribution Picking up Across Many Markets
Twenty-three developed markets were down 0.6% on average this week. Seventeen markets fell, including ten by at least 1% and four (Japan, Finland, Spain, Portugal) by at least 2%. Among the six gainers, the U.K. and Switzerland gained at least 1%.
Emerging Markets Stretch Outperformance
Twenty-three developed markets declined 0.8% on average this week. Sixteen markets fell, including 11 by at least 1% and eight (Australia, Japan, Spain, Norway, Italy, Portugal, Finland, the Netherlands) by at least 2%. Among the seven gainers, the U.S. and Sweden gained at least 1%.
As Markets Digest Gains, We Continue to Await New Leadership
Twenty-three developed markets were down 1.3% on average through Thursday of this week. Nineteen markets fell, including 13 by at least 1% and eight (France, Canada, Sweden, Spain, Italy, Finland, Austria, Singapore) by at least 2%. Japan led with a 1% gain.
Rally Continues for the Fifth Week
Twenty-two developed markets were relatively flat, gaining 0.2% on average this week. Half of the markets rose, including eight by at least 1% and four (Austria, Finland, Portugal and Singapore) by at least 2%. Five markets (Denmark, Ireland, Japan, Sweden and Switzerland) fell by at least 1% on average.
Double-Digit Average Global Market Gains over Four Weeks
Twenty-three developed markets gained 0.7% on average this week. Seventeen markets rose, including seven by at least 1% and five (Canada, Spain, Italy, Denmark, Austria) by at least 2%. The U.K. (-1.2%) was the only market to fall by at least 1%.
Worst Becomes the Best in the Short-Term as Stocks Move Higher
Twenty-three developed markets gained 3.5% on average this week. Markets have gained over 8% on average over the past three weeks. All markets rose, including 14 by at least 3% and seven (Japan, Australia, Hong Kong, Netherlands, Italy, Singapore, Portugal) by at least 4%.
Markets Move Higher for a Second Week
Twenty-two developed markets gained 1.3% on average this week, building on 4%+ average gains last week. Twenty markets rose, including 15 by at least 1% and six (France, Denmark, Spain, Netherlands, Norway, Italy) by at least 2%. Australia (-1.3%) and Singapore (-0.3%) were the only markets that fell.
Laggards Lead Strong Global Market Bounce
Twenty-three developed markets gained 4.7% on average this week, recovering all of the prior week’s losses. All markets gained at least 2%, 11 gained at least 4%, and four (Japan, Netherlands, Denmark, Finland) gained at least 6.5%.
Market View
U.S. Indices rallied this week after undercutting previous lows. This sharp rally can be attributed to broken for-mer leaders rallying from extreme sell-offs over the past two weeks. The vast majority are now trading more than 20% off their highs, and most were able to outperform the major averages this week. These bear market rallies can be quite strong, however, many of these ideas carry a tremendous amount of overhead supply and will like-ly run into their own individual areas of resistance. Resistance on the S&P 500 remains the same: approximately 1950 as well as the downward trending 50- and 200-day moving averages. 1950 and the 50 dma are still 2% above current levels.
