World Markets Review for Third Quarter 2017 | Capital Group

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Market Commentary

October 2017

World Markets Review for Third Quarter 2017

Stocks rose amid a brighter outlook for the global economy and better-than-expected corporate earnings. Several key market indexes reached record highs during the quarter, despite increasing tensions with North Korea and the start of a particularly destructive hurricane season. European stocks and emerging markets outpaced U.S. equities.

Economically sensitive stocks generally provided stronger returns than defensive sectors. Information technology, energy and materials stocks led markets higher. Financial stocks also advanced on expectations for rising global interest rates. The consumer staples sector fell, weighed down by a sharp decline in the shares of tobacco companies.

Equity Index Returns (%)

September 2017

3Q 2017

YTD 2017

U.S.

dollar

Local

currency

U.S.

dollar

Local

currency

U.S.

dollar

Local

currency

S&P 500

2.1

2.1

4.5

4.5

14.2

14.2

MSCI ACWI

1.9

2.1

5.2

4.3

17.3

13.7

MSCI ACWI EX USA

1.9

2.2

6.2

4.4

21.1

13.5

MSCI World

2.2

2.3

4.8

3.9

16.0

12.5

MSCI Emerging Markets IMI

−0.3

0.5

7.6

7.3

27.1

22.8

MSCI EAFE

2.5

2.7

5.4

3.4

20.0

11.2

MSCI Europe

3.3

2.7

6.4

3.5

22.8

11.6

MSCI Pacific

1.0

2.7

3.9

3.5

15.4

10.7


Source: RIMES


Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses or the collective investment trust's Characteristics statement, which can be obtained from a financial professional, Capital or your relationship manager, and should be read carefully before investing. 

Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and not to be comprehensive or to provide advice. 

Terms and Definitions
A market capitalization-weighted index based on the results of approximately 500 widely held common stocks.
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.
MSCI All Country World Index is a free float-adjusted market-capitalization-weighted index that is designed to measure results of more than 40 developed and emerging equity markets.
MSCI EAFE (Europe, Australasia, Far East) Index is a free float-adjusted market-capitalization-weighted index that is designed to measure developed market equity results, excluding the United States and Canada.
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.
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 results of more than 20 developed equity markets.