Twenty-three developed markets gained 0.2% on average this week, with most moving moderately higher after strong gains last week. Sixteen markets gained, including eight (Germany, Netherlands, Denmark, Ireland, Belgium, Italy, Portugal, New Zealand) by at least 1%. Of the six markets that fell, Australia, Hong Kong, and Israel each lost at least 1%.
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.
Markets Regain Strength, Stock Leadership Remains Thin, but Strong
Twenty-three developed markets gained 2.6%, on average, this week, recovering all of prior week losses. Twenty-one markets gained, including 16 by at least 2%, and 11 (U.S., U.K., Germany, Australia, Canada, Switzerland, Netherlands, Finland, Ireland, Israel, Austria) by at least 3%. Singapore was the laggard, losing 0.3%.
Markets Meet Resistance, Turn for Worse
Twenty-three developed markets fell 2.6%, on average, this week, falling sharply for the first time this quarter. Twenty-one markets fell, including 15 by at least 2%, and nine (U.K., Australia, France, Canada, Spain, Sweden, Netherlands, Austria, Portugal) by at least 3%. Japan was the lone standout, gaining 1.7%.
Market View
U.S. indices put in their sixth straight week of gains, supported by strong moves in Energy, Financials, and encouragingly, small-cap ideas. Both the S&P 500 and Nasdaq are now sitting just 1-2% off all time highs, while the Russell is still about 8% off previous highs. Continued positive action in small- and mid-cap names would widen the breadth of the rally and give us even more confidence in further gains ahead.
Global Rally Continues into November
Twenty-three developed markets gained 1.1%, on average, this week, resuming broad gains after pausing last week. Nineteen markets gained, including 12 by at least 1% and four (Denmark, Norway, Finland, Austria) by at least 2%. Four markets (Australia, the U.K., Canada, Italy) fell, each by 0.4% or less.
Huge October for U.S., Global Markets
Twenty-two developed markets lost 0.7% on average this week, pausing after broadly gaining in three of the past four weeks. Fifteen markets fell, including 12 by at least 1% and four (Hong Kong, Norway, Singapore, Ireland) by at least 2%. Of the seven gainers, Japan, Belgium, and Israel each gained at least 1%.
Markets Push Higher, As U.S. Earnings Season Accelerates
Twenty-three developed markets were up 2.4% on average this week, broadly gaining for a third time in four weeks. All markets except Denmark (-1.3%) posted gains, including 12 up at least 2% and eight (U.S., France, Germany, Netherlands, Sweden, Finland, Ireland, Austria) up at least 3%.
Market View
U.S. indices moved higher again this week, rising on the back of strong earnings results from major technology bellwethers and U.S. Focus List constituents Amazon and Alphabet. Money continues to flow out of Health Care and into large cap Technology as well as sharply improving sectors such as Transportation. We view ideas from the Technology sector as the true growth leaders of this current marketplace and continue to recommend hold-ing these ideas, despite some very strong moves already occurring.
Markets Consolidate Gains
Twenty-three developed markets were flat on average this week, consolidating after 4%+ average gains last week. Twelve markets posted gains; however, just four (Hong Kong, New Zealand, Singapore, Ireland) gained at least 1%. Of 12 markets that fell, four (Sweden, Spain, Belgium, Portugal) lost at least 1%. All other markets traded in fairly tight ranges.
Market View
The S&P 500 had a Day-5 follow-through on Monday, jumping 1.8% on above-average volume. The major averages are now re-testing resistance levels from mid-September. This two-week rise in the market has been primarily supported by beaten down sectors thus far – Energy, Basic Materials, and Transportation. It will be critical for fundamentally sound companies to also join the rally and begin to emerge, as lagging sectors will run into major overhead supply over the next few days or weeks. The good sign is that we have begun to see small pockets of new leadership emerge, while the bellwethers are trading back above their respective 50-day moving averages. With the market back in a Confirmed Uptrend and new leadership surfacing, it makes sense to start reentering very select leadership ideas.
