World Markets Review for October 2018 | Capital Group

World Markets Review

November 2018

World Markets Review for October 2018

Global stocks tumbled in October, pressured by rising U.S. interest rates, worsening global trade relations and investor concerns about lofty valuations among technology and consumer tech companies. The powerful sell-off was initially triggered by surging Treasury bond yields, which were boosted by signs of stronger-than-expected U.S. economic activity.

Previously high-flying stocks led the market downturn, including Amazon and Microsoft. Traditionally defensive sectors such as utilities and consumer staples fared relatively better. Emerging markets stocks also declined broadly – with the notable exception of Brazil, where assets rallied on the election of market-friendly President Jair Bolsonaro.

Equity Index Returns (%)

October 2018

YTD 2018

U.S.

dollar

Local

currency

U.S.

dollar

Local

currency

S&P 500

-6.8

-6.8

3.0

3.0

MSCI ACWI

-7.5

-6.9

-4.0

-1.8

MSCI ACWI ex USA

–8.1

–6.8

–11.0

–6.6

MSCI World

-7.3

-6.8

-2.3

-0.6

MSCI Emerging Markets IMI

–8.9

–7.9

–16.4

–11.0

MSCI EAFE

–8.0

–6.5

–9.3

–5.2

MSCI Europe

–7.6

–5.4

–9.9

-4.7

MSCI Pacific

–8.6

–8.5

–8.4

–6.4


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.