Global stocks advanced on signs of progress in U.S.-China trade negotiations and hints that monetary tightening may be on hold in the U.S. and Europe. Markets rebounded from a tough fourth quarter to post one of the strongest January results in years, lifted by shares of economically sensitive and trade-dependent companies.
Energy and real estate stocks led markets higher, boosted by rising oil prices and indications that global interest rates may remain lower than previously expected. The industrials sector also rose sharply on investor hopes that a brewing global trade war may be averted. Traditionally defensive sectors, including consumer staples and utilities, lagged the overall market.
Equity Index Returns (%)
January 2019
YTD 2018
U.S.
dollar
Local
currency
U.S.
dollar
Local
currency
S&P 500
8.0
8.0
–4.4
–4.4
MSCI ACWI
7.9
7.2
–9.4
–7.7
MSCI ACWI ex USA
7.6
6.1
–14.2
–10.6
MSCI World
7.8
7.2
–8.7
–7.4
MSCI Emerging Markets IMI
8.4
6.8
–15.0
–10.5
MSCI EAFE
6.6
5.5
–13.8
–11.0
MSCI Europe
6.6
5.6
–14.9
–10.6
MSCI Pacific
6.5
5.1
–12.0
–11.7
Source: RIMES