World Markets Review for August 2017 | Capital Group

World Markets Review

September 2017

World Markets Review for August 2017

Global stocks finished August roughly where they started as investor optimism over improving world economic growth was tempered by rising geopolitical risk. Developed markets in the U.S., Europe and Japan moved sideways as tensions rose over international disputes with Russia and North Korea. In contrast, emerging markets stocks rose on stronger metals prices and a weaker dollar.

Information technology and utilities stocks enjoyed the best gains, supported by strong corporate earnings growth. Energy stocks declined the most, weighed down by falling oil prices amid over-supply concerns. Financial stocks also fell as many investors appeared to take profits from what had been the highest returning sector in developed markets since the November U.S. elections.

Equity Index Returns (%)

August 2017

YTD 2017

U.S. Dollar %

Local %

U.S. Dollar %

Local %

S&P 500

0.3

0.3

11.9

11.9

MSCI ACWI

0.4

0.4

15.0

11.4

MSCI ACWI ex USA

0.5

0.5

18.9

11.0

MSCI World

0.1

0.1

13.5

10.0

MSCI Emerging Markets IMI

2.2

2.1

27.5

22.2

MSCI EAFE

—0.0

—0.0

17.0

8.2

MSCI Europe

0.1

0.1

18.9

8.7

MSCI Pacific

0.1

—0.0

14.3

7.8

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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