Twenty-three developed markets gained an average of 0.8% this week; however, removing
the effect of a 12.5% loss in Switzerland, markets gained 1.4%. Fourteen European markets
(excluding Switzerland) gained 2.6% on average. Long-term lagging markets in Portugal
(6.1%) and Italy (5.1%) led, but key markets in Germany and France also did very well,
with gains of around 4% each. Eight other markets fell, including Australia (-2.6%),
Japan (-1.9%), Canada (-1.7%), and the U.S. (S&P 500 -1.3%).
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.
Wide Decrepancy in Indices over Six Months
Twenty-three developed markets lost an average of 1.5% this week. Most markets fell after gains last week, and losses
accelerated to end the week. Spain (-6.6%) and Italy (-5.4%) fell by the most, while five other countries, including Canada
and France, fell by at least 2%. Bucking the trend were Switzerland (+1.2%) and Australia (+0.9%).
Slight Majority of Markets Moving Up as 2015 Begins
For the full-year 2014, 23 developed markets averaged a 3.3% gain. Denmark
led the way (20.9%), followed by Ireland (15.1%), Belgium (12.1%), New
Zealand (11.8%), and the U.S. (11.4%). Portugal (-26.8%), Austria (-15.3%),
Italy (-11.5%), and the U.K. (-9.0%) were the worst.
Germany Displaying Strength After October Pull-Back
Twenty-two developed markets gained an average of 0.8% this week. Most markets continued last week’s mid-week turnaround, and just three markets fell (Italy, Israel, and Denmark). Austria (2.4%) and Singapore (2.3%) led and 13 other markets gained at least 1%.
Markets Bounce Back as Year-end Approaches
Twenty-three developed markets gained an average of 1.4% this
week, with most markets staging a significant mid-week rebound
from early week losses. After sharp losses to end last week, and
more losses to begin the week, the rebounds were extremely
constructive. Norway (5.4%), Canada (4.9%), the U.S. (S&P 500-
3.2%), and the U.K. (3.1%) led the way, while six other markets
gained at least 1.5%. Singapore (-1.3%) and Hong Kong (-0.6%)
were among six markets that were slightly negative.
Markets Fall Sharply, Several Large Markets Back in Downtrend
Twenty-three developed markets fell by an average of 4.2% this week, with losses accelerating
into the week’s end. The sharp losses wiped out much of the average gains of the past six or
seven weeks. All 22 markets fell, 13 by at least 4%. France, the U.K., Spain, Portugal, Italy,
and Austria fell by at least 6%. Major U.S. indices closed at weekly lows, down about 3-4%.
Outperforming markets included Singapore, New Zealand, and Israel, which were each down
just slightly.
U.S. Large Cap Financials Break Higher, but Better Options Exist
Twenty-three developed markets gained an average of 0.8% this week. Seventeen of 23
markets gained, including eight by at least 1%. Ireland led with a 4.3% gain, followed by Japan
(2.6%), Denmark (1.6%), and Portugal (1.8%). Among the five markets that fell, Canada was
the only one with substantial losses, dropping by 2%.
No Signs of Weakness Yet, but a bit of Stalling
Twenty-two developed markets gained an average of 0.3% this week. Seventeen of 23
markets gained, but the average was dragged by sharp losses in Norway (-6.7%), Portugal
(-2.4%), and Canada (-1.8%). Hong Kong (2.4%) and Germany (2.2%) led, followed by Spain
(2.2%) and Ireland (2.1%). Most other large markets (Australia, Switzerland, France, and the
U.K.) were slightly positive or negative.
South Africa Stocks Broadly Move to Highs
Twenty-two developed markets gained an average of 1.7% this week. All but three
markets gained, led by Germany (5.1%), Ireland (4.8%), and France (3.4%). Hong Kong
and Australia fell by 2.7% and 2.4%, respectively.
Developed Markets Pause, Emerging Markets Fall
Twenty-three developed markets gained an average of 0.5% this week. Fourteen
markets gained, led by Japan (3.6%), Hong Kong (2.3%), and Switzerland (1.6%). Most
other markets posted slight gains. Of the eight markets that fell, Ireland (-1.7%) and
Australia (-1.2%) fell the most.
