World Markets Review for fourth quarter and full-year 2019 | Capital Group

World Markets Review

January 2020

World Markets Review for fourth quarter and full-year 2019

Global stocks generated the best returns in a decade, boosted by aggressive central bank stimulus and easing trade tensions toward the end of 2019. U.S. stocks soared to record highs in December as the U.S. and China agreed to a limited trade truce.

Technology stocks posted the highest returns for the year with a gain of nearly 48% in aggregate. The next best sector, industrials, rose 28% amid an improving outlook for trade activity and global economic growth. All sectors enjoyed double-digit gains for the year, although energy stocks lagged far behind the overall market.

Equity Index Returns (%)

December 2019

4Q 2019

YTD 2019

U.S.

dollar

Local

currency

U.S.

dollar

Local

currency

U.S.

dollar

Local

currency

S&P 500

3.0

3.0

9.1

9.1

31.5

31.5

MSCI ACWI

3.5

2.7

9.0

7.7

26.6

26.2

MSCI ACWI ex USA

4.3

2.4

8.9

6.2

21.5

20.7

MSCI World

3.0

2.3

8.6

7.5

27.7

27.3

MSCI Emerging Markets IMI

7.3

5.6

11.6

9.3

17.6

17.3

MSCI EAFE

3.2

1.3

8.2

5.2

22.0

21.7

MSCI Europe

3.9

1.7

8.8

4.5

23.8

23.8

MSCI Pacific

2.2

0.8

7.0

6.4

19.3

18.5


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.