World Markets Review for Fourth Quarter 2017 | Capital Group

World Markets Review

January 2018

World Markets Review for Fourth Quarter 2017

Global stocks rose amid strong corporate earnings growth, improving world economic data and a fourth-quarter surge in merger-and-acquisition activity. Political events also helped propel markets higher as investors cheered a $1.5 trillion tax cut in the U.S. and the re-election of Prime Minister Shinzo Abe in Japan.

Information technology stocks provided the largest gains, supported by investor enthusiasm for Apple’s new iPhone and other popular consumer tech products. Basic materials stocks also rallied on a brighter outlook for global economic growth. Heath care, utilities and telecommunication services stocks lagged the overall market.

Equity Index Returns (%)

December 2017

4Q 2017

YTD 2017

U.S.

dollar

Local

currency

U.S.

dollar

Local

currency

U.S.

dollar

Local

currency

S&P 500

1.1

1.1

6.6

6.6

21.8

21.8

MSCI ACWI

1.6

1.3

5.7

5.3

24.0

19.8

MSCI ACWI EX USA

2.2

1.5

5.0

4.2

27.2

18.2

MSCI World

1.4

1.1

5.5

5.3

22.4

18.5

MSCI Emerging Markets IMI

3.6

2.6

7.7

5.9

36.8

30.0

MSCI EAFE

1.6

1.2

4.2

3.7

25.0

15.2

MSCI Europe

1.5

1.0

2.2

1.3

25.5

13.1

MSCI Pacific

1.7

1.5

8.0

8.1

24.6

19.7


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.
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. 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 results of more than 20 developed equity markets.
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.