35 of 46 markets declined in “messy” October

Related Content Related Video Related Articles

Howard Silverblatt, senior index analyst at S&P Dow Jones Indices comments on the results of the October Global Broad Market Index (BMI).

  • Hong Kong (5.20%), Australia (4.63%) and US (2.65%) lead the developed markets, whilst Norway (-9.59%), Portugal (-8.44%) and Italy (-6.08%) came bottom
  • Turkey (10.20%), South Africa 6.14%) and India (4.42%) were top of the emerging markets; Greece (-15.06%), Czech Republic (-10.39%) and UAE (-9.38%) came last
  • Global increase of 0.69% was down to US’ 2.65%; ex-US, there was a global decrease of -1.18%
  • Japan gained at month-end as stimulus announced, but was still down 1.59% for the month

Summary

There is no easy way to put it—the market was a mess this month.  Concerns over European, Japanese and Chinese growth, lower oil prices reducing income for sovereign nations, and an Ebola scare pushed stocks down in the first part of the month, as several markets went into correction mode (off at least 10% from their high).

The tone changed, however (at least in the U.S.), as positive earnings started to come in, refocusing investor attention on issues at home.  Several non-U.S. markets also benefited from their earnings, but it was a U.S. change that helped refocus some of the global attention from “doom and gloom” to “buy and celebrate”.  The U.S. Fed ended stimulus as expected, but said it would keep rates low.  On the last day of the month the Bank of Japan unexpectedly increased its stimulus, pushing the market up for day, and pulling other markets up with it.

While the month ended with a positive return, 35 of the 46 countries closed lower, as the U.S. pulled global market up.

Emerging markets outperformed developed markets in October

Emerging markets did better than developed markets for the month of October, as they posted a 1.45% gain with 16 of the 23 markets posting a loss.  Greece was the worst-performing country for the month at off 15.06%, as the recurring concerns over its economy and debt returned.

Oil-producing countries declined, as Egypt fell 7.10%, the U.A.E. lost 9.38% and Russia posted a 2.66% decline.

Turkey did the best in October, adding 10.20%, with South Africa up 6.14%.  Emerging markets are up 3.79% YTD, with a wide range of returns in that time period, from India’s 34.06% gain to Greece’s 29.51% decline.

US pushes developed markets into positive return territory

Developed markets posted a 0.61% gain for the month, which would have been a 1.82% decrease without the U.S. 2.65% gain.  Hong Kong did the best in October at up 5.20%, as it turned its YTD return positive, at up 3.83%.  Australia rebounded by 4.63% for the month, as it also turned its return positive, with a 1.19% gain.  Norway was the worst-performing country of the developed markets in October, off 9.59%, followed by Portugal, off 8.44%, and Italy, which declined 6.08%.  Developed markets are up 2.31% YTD, but excluding the 8.19% gain by the U.S., the overall increase would be a loss of 4.24%.

S&P Global Broad Market Index (BMI) Global, October 2014

Data as at 31 October 2014

BMI MEMBER 1-MONTH YTD 3-MONTH 6-MONTH 1-YEAR 2-YEAR 3-YEAR
Global 0.69% 2.45% -1.02% 1.13% 5.48% 28.44% 50.98%
Global Ex-U.S. -1.18% -2.76% -5.84% -3.82% -1.25% 15.88% 29.35%
Emerging 1.45% 3.79% -3.26% 4.63% 1.55% 5.40% 18.00%
Turkey 10.20% 13.97% -5.75% 3.47% -4.17% -8.83% 15.23%
South Africa 6.14% 7.19% -1.93% 3.35% 5.61% 7.62% 21.49%
India 4.42% 34.06% 5.67% 23.92% 35.82% 31.29% 31.19%
China 4.14% 2.62% -1.51% 12.18% 5.07% 17.75% 39.14%
Morocco 2.98% 6.70% 6.09% 2.45% 5.82% 6.28% -15.36%
Chile 0.96% -8.10% -1.30% -4.98% -15.32% -27.43% -14.09%
Indonesia 0.28% 21.17% -5.10% 0.55% 7.97% -9.24% -0.72%
Taiwan -0.12% 3.11% -5.04% 1.63% 5.05% 22.94% 26.62%
Brazil -0.16% -3.38% -10.82% -6.67% -13.71% -18.17% -16.36%
Malaysia -0.25% 0.37% -4.01% -0.55% -0.81% 4.97% 31.54%
Mexico -0.51% 2.81% 0.49% 8.15% 6.42% 7.92% 41.85%
Thailand -0.65% 23.30% 4.45% 11.09% 9.71% 15.02% 66.43%
Philippines -1.00% 20.62% 1.48% 5.59% 6.38% 19.49% 73.79%
Qatar -1.19% 31.11% 4.94% 6.65% 38.49% 59.19% 66.97%
Peru -2.44% 0.56% -6.32% -3.77% -3.23% -23.74% -6.37%
Russia -2.66% -25.02% -10.25% -5.47% -26.44% -22.52% -17.54%
Hungary -3.06% -20.97% -5.00% -13.02% -23.23% -25.75% -8.46%
Columbia -3.23% -1.54% -11.03% -6.19% -10.27% -14.90% 3.60%
Poland -3.49% -7.55% -1.35% -9.43% -10.44% 8.92% 20.24%
Egypt -7.10% 29.84% 3.20% 8.40% 39.99% 34.53% 78.28%
U.A.E. -9.38% 20.74% -5.09% -7.84% 39.48% 122.69% 158.80%
Czech Republic -10.39% -5.40% -4.26% -10.93% -14.30% -21.13% -24.39%
Greece -15.06% -29.51% -27.14% -32.46% -25.59% 8.62% 4.43%
Developed 0.61% 2.31% -0.76% 0.78% 5.91% 31.44% 55.46%
Developed Ex-U.S. -1.82% -4.24% -6.46% -5.67% -1.93% 18.63% 32.31%
Hong Kong 5.20% 3.83% -3.39% 4.56% 4.92% 16.45% 43.89%
Australia 4.63% 1.19% -7.54% -4.71% -5.48% 2.30% 21.81%
United States 2.65% 8.19% 4.30% 6.59% 13.09% 43.70% 79.96%
New Zealand 2.01% 2.47% -6.31% -9.18% -1.76% 18.89% 42.68%
Finland -0.67% -4.36% -4.66% -4.76% -0.41% 40.62% 44.65%
Switzerland -0.69% 0.55% -1.13% -4.59% 3.66% 33.15% 55.49%
Austria -0.94% -17.22% -9.65% -18.83% -18.32% 3.63% 13.67%
Luxembourg -1.13% -10.53% -8.98% -12.58% -1.56% 5.24% 3.87%
Sweden -1.15% -7.26% -4.68% -9.37% -1.86% 23.81% 50.84%
Singapore -1.26% -0.09% -7.27% -2.68% -2.92% 1.74% 23.10%
Japan -1.59% -3.76% -5.10% 4.63% -0.63% 28.39% 21.45%
Israel -1.63% 9.94% -2.97% 0.22% 17.58% 22.38% 32.43%
Denmark -1.70% 11.57% -4.05% -3.10% 20.41% 51.58% 102.17%
Netherlands -1.80% -5.48% -1.96% -5.32% -1.65% 28.25% 49.76%
Belgium -1.98% -0.64% -2.59% -5.41% 3.19% 30.45% 63.90%
Germany -2.03% -13.25% -6.98% -13.55% -6.96% 18.65% 46.11%
United Kingdom -2.28% -6.50% -7.67% -8.49% -2.63% 14.94% 36.07%
Ireland -2.53% -4.03% -3.66% -9.54% 1.41% 48.07% 84.55%
Korea -3.47% -5.13% -10.07% -5.06% -5.62% 4.57% 24.25%
Canada -3.60% 0.63% -8.63% -3.48% 0.69% 4.13% 15.39%
Spain -4.23% -1.21% -8.70% -8.76% 1.49% 38.15% 27.68%
France -4.39% -9.57% -7.09% -14.82% -7.49% 22.26% 35.99%
Italy -6.08% -5.65% -10.40% -18.68% -5.25% 23.62% 26.82%
Portugal -8.44% -23.77% -17.32% -34.09% -19.62% 1.33% -14.98%
Norway -9.59% -11.27% -13.59% -15.14% -11.85% -2.12% 20.89%
preloader
Close Window
View the Magazine





You need to fill all required fields!