World Markets Review for February 2018 | Capital Group

World Markets Review

March 2018

World Markets Review for February 2018

Global stocks fell sharply amid investor worries that a strengthening U.S. economy may prompt the Federal Reserve to raise interest rates at a faster-than-expected pace. Signs of inflationary pressures sparked a rapid sell-off in late January and early February, resulting in the first correction, or 10% loss, for U.S. stocks since early 2016.

All sectors posted losses, weighed down by steep declines in energy, consumer staples and real estate stocks. Information technology stocks fared better as major bellwethers such as Apple and Netflix bounced back quickly. Industrials, health care and utilities stocks fell roughly in line with the overall market. 

Equity Index Returns (%)

February 2018

YTD 2018

U.S. Dollar %

Local %

U.S. Dollar %

Local %

S&P 500

−3.7

–3.7

1.8

1.8

MSCI ACWI

−4.2

−3.6

1.2

0.4

MSCI ACWI ex USA

−4.7

−3.4

0.6

–1.1

MSCI World

−4.1

−3.5

0.9

0.1

MSCI Emerging Markets IMI

−4.5

−3.8

3.1

2.4

MSCI EAFE

−4.5

−3.3

0.3

−2.1

MSCI Europe

−5.9

−3.5

−0.8

−2.5

MSCI Pacific

−2.1

−2.8

2.2

−1.5

Source: RIMES


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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.