Global stocks rallied amid strong corporate earnings growth and improving economic data in the United States, Europe and Japan. Several key market indexes hit a series of new highs, fueled by expectations that newly elected U.S. President Donald Trump would deliver business-friendly policies, including tax cuts and regulatory reductions.
Economically sensitive stocks led markets higher, highlighted by a 12% gain in the information technology sector. Health care stocks rose sharply as U.S. lawmakers failed to repeal the Affordable Care Act, reducing uncertainty surrounding the legislative overhaul. Emerging markets stocks also rallied on brighter prospects for China’s economy.
Equity Index Returns (%)
March 2017
1Q 2017
YTD 2016
U.S.
dollar
Local
currency
U.S.
dollar
Local
currency
U.S.
dollar
Local
currency
S&P 500
0.1
0.1
6.1
6.1
12.0
12.0
MSCI ACWI
1.2
1.1
6.9
5.7
7.9
9.0
MSCI ACWI EX USA
2.5
2.2
7.9
5.2
4.5
7.0
MSCI World
1.1
1.0
6.4
5.4
7.5
9.0
MSCI Emerging Markets IMI
2.5
1.9
11.7
7.9
9.9
8.7
MSCI EAFE
2.8
2.4
7.2
4.7
1.0
5.3
MSCI Europe
4.0
3.5
7.4
6.0
−0.4
7.2
MSCI Pacific
0.6
0.6
6.9
2.5
4.2
2.3
Source: RIMES