World Markets Review for First Quarter 2018 | Capital Group

World Markets Review

April 2018

World Markets Review for First Quarter 2018

Global stocks declined amid investor worries about rising interest rates, mounting inflation pressures and escalating trade tensions between the U.S. and China. Talk of a potential trade war sent developed-market stocks reeling at various times throughout the quarter, while emerging markets stocks powered through the turmoil.

Defensive stocks pulled markets lower, weighed down by losses in the consumer staples and telecommunication services sectors. Late in the quarter, information technology stocks came under intense pressure as several tech giants faced regulatory scrutiny and trade-related concerns. Even so, the U.S. tech sector finished the volatile quarter with a 4% gain.

Equity Index Returns (%)

March 2018

1Q 2018

YTD 2017

U.S.

dollar

Local

currency

U.S.

dollar

Local

currency

U.S.

dollar

Local

currency

S&P 500

−2.5

−2.5

−0.8

−0.8

21.8

21.8

MSCI ACWI

−2.1

−2.3

−1.0

−1.9

24.0

19.8

MSCI ACWI ex USA

−1.8

−2.0

−1.2

−3.1

27.2

18.2

MSCI World

−2.2

−2.3

−1.3

−2.2

22.4

18.5

MSCI Emerging Markets IMI

−1.8

−1.8

1.3

0.6

36.8

30.0

MSCI EAFE

−1.8

−2.2

−1.5

−4.3

25.0

15.2

MSCI EUROPE

−1.2

−1.9

−2.0

−4.3

25.5

13.1

MSCI PACIFIC

−2.8

−2.7

−0.7

−4.1

24.6

19.7


Source: RIMES

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Terms and Definitions
MSCI EAFE (Europe, Australasia, Far East) Index is a free float-adjusted market capitalization weighted index that is designed to measure developed equity market results, excluding the United States and Canada. Results reflect dividends net of withholding taxes. This index is unmanaged, and its results include reinvested dividends and/or distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or U.S. federal income taxes.
MSCI Emerging Markets Investable Markets Index measures large, mid and small-cap segments, covering approximately 99% of the free float-adjusted market capitalization of more than 20 emerging equity markets.
MSCI Europe Index is a free float-adjusted market capitalization-weighted index that is designed to measure results of more than 10 developed equity markets in Europe. Results reflect dividends net of withholding taxes. This index is unmanaged, and its results include reinvested dividends and/or distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or U.S. federal income taxes.
MSCI Japan Index is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market results of Japan.
MSCI Pacific ex Japan Index is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market results of the developed markets in the Pacific region, excluding Japan.
MSCI United Kingdom Index is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market results of the United Kingdom.
MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure equity market results of developed markets. The index consists of more than 20 developed market country indexes, including the United States. Results reflect dividends net of withholding taxes. This index is unmanaged, and its results include reinvested dividends and/or distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or U.S. federal income taxes.
S&P 500 Index is a market capitalization-weighted index based on the results of approximately 500 widely held common stocks. This index is unmanaged, and its results include reinvested dividends and/or distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or U.S. federal income taxes.
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