The first week of the fourth quarter began with selloffs in seven of the eight world market. The Shanghai was closed for the week for National Day. But the situation improved as selloffs were replaced by rallies, triggered by hopes for improvements in Euroland debt management. Thus, the biggest winners were the three European Union indexes: The CAC gained 3.81%, the FTSE 3.41% and the DAX 3.16%. The S&P also finished in the green, up 2.12%, and the Hang Seng broke a three-week losing streak with a fraction gain. The two losers were the Nikkei and SENSEX with declines of 1.09% and 1.34% respectively.
The tables below provide a concise overview of performance comparisons over the past four weeks for these seven major indexes. I’ve also included the average for each week so that we can evaluate the performance of a specific index relative to the overall mean and better understand weekly volatility. The colors for each index name help us visualize the comparative performance over time.
The chart below illustrates the comparative performance of World Markets since March 9, 2009. The start date is arbitrary: The S&P 500, CAC 40 and BSE SENSEX hit their lows on March 9th, the Nikkei 225 on March 10th, the DAX on March 6th, the FTSE on March 3rd, the Shanghai Composite on November 4, 2008, and the Hang Seng even earlier on October 27, 2008. However, by aligning on the same day and measuring the percent change, we get a better sense of the relative performance than if we align the lows.
Here is the same chart starting from the turn of 21st century. The relative over-performance of the emerging markets (Shanghai, Mumbai, Hang Seng) is readily apparent.
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