World Markets Review for Second Quarter 2018 | Capital Group

World Markets Review

July 2018

World Markets Review for Second Quarter 2018

Global stocks rose modestly despite signs of slowing economic growth in Europe and Japan, deteriorating trade relations and rising U.S. interest rates. In a volatile quarter, markets came under pressure largely due to trade and political turmoil, but strong earnings growth among select companies helped to boost investor sentiment.

Energy stocks led markets higher, gaining 13% amid concerns about oil supply shortages around the world. The information technology sector also rallied on solid earnings reports from tech giants Apple, Facebook and Microsoft. Meanwhile, stocks in the industrials, financials and telecommunication services sectors lost ground.

Equity Index Returns (%)

June 2018

2Q 2018

YTD 2018

U.S.

dollar

Local

currency

U.S.

dollar

Local

currency

U.S.

dollar

Local

currency

S&P 500

0.6

0.6

3.4

3.4

2.6

2.6

MSCI ACWI

–0.5

–0.0

0.5

2.7

–0.4

0.8

MSCI ACWI EX USA

–1.9

–0.7

–2.6

1.9

–3.8

–1.2

MSCI World

–0.0

0.3

1.7

3.6

0.4

1.3

MSCI Emerging Markets IMI

–4.4

–2.7

–8.0

–3.5

–6.9

–3.0

MSCI EAFE

–1.2

–0.3

–1.2

3.5

–2.7

–1.0

MSCI Europe

–0.7

–0.3

–1.3

4.1

–3.2

–0.4

MSCI Pacific

–2.2

–0.4

–1.4

2.3

–2.0

–2.0


Source: RIMES

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Terms and Definitions
MSCI All Country World ex USA Index is a free float-adjusted market capitalization weighted index that is designed to measure equity market results in the global developed and emerging markets, excluding the United States. The index consists of more than 40 developed and emerging market country indexes. Results reflect dividends gross 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 All Country World Index is a free float-adjusted market capitalization weighted index that is designed to measure equity market results in the global developed and emerging markets, consisting of more than 40 developed and emerging market country indexes. Results reflect dividends gross 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 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 gross 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 Pacific Index is a free float-adjusted market capitalization- weighted index that is designed to measure the equity market results across 5 Developed Markets countries in the Pacific region.
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 gross 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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