World Markets Review for Third Quarter 2018 | Capital Group

World Markets Review

October 2018

World Markets Review for Third Quarter 2018

Global equities rallied amid strong corporate earnings and solid economic growth in developed markets. U.S. stocks hit a series of new record highs during the quarter. Emerging markets stocks, on the other hand, were generally flat to negative, hurt by a strong U.S. dollar, higher interest rates and worries about global trade tensions.

Health care stocks generated the highest returns, boosted by rising profits at major drug manufacturers in the U.S. and Europe. Information technology stocks also advanced on impressive earnings from Apple, Microsoft and other U.S. tech giants. The real estate sector declined, pressured by rising interest rates, and basic materials stocks were essentially flat.

Equity Index Returns (%)

September 2018

3Q 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

7.7

7.7

10.6

10.6

MSCI ACWI

0.4

0.5

4.3

4.7

3.8

5.5

MSCI ACWI EX USA

0.5

0.6

0.7

1.5

-3.1

0.3

MSCI World

0.6

0.7

5.0

5.3

5.4

6.6

MSCI Emerging Markets IMI

-0.9

-1.5

-1.5

-0.4

–8.2

–3.4

MSCI EAFE

0.9

1.4

1.4

2.4

–1.4

1.4

MSCI Europe

0.4

0.3

0.8

1.2

-2.5

0.7

MSCI Pacific

1.8

3.4

2.3

4.4

0.2

2.4


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.