8 November 2016 was pre-result day for US Presidential election. A month later after Donald Trump won the presidential race, the global equity markets rose while fixed income (bonds) declined. US stocks rallied. Japan’s Nikkei 225 and larger European bourses (Germany, France) benefited too.
|Nikkei 225 (Japan)||17,171.38||18,996.37||10.6%|
|Dow Jones (USA)||18,332.74||19,756.85||7.8%|
|CAC 40 (France)||4,476.89||4,764.07||6.4%|
|S&P 500 (USA)||2,139.56||2,259.53||5.6%|
|Australia All Ordinaries||5,342.20||5,615.80||5.1%|
|Hang Seng (HK)||22,909.47||22,760.98||-0.6%|
The Straits Times Index (STI) was up 4.8% during this period.
However when we look at Year-to-Date changes to the stock indices from the start of 2016, it was a different picture. Except for the US stock markets, some markets were playing catch-up in the month after the US presidential election.
|Dow Jones (USA)||17,425.03||19,756.85||13.4%|
|S&P 500 (USA)||2,043.94||2,259.53||10.5%|
|Australia All Ordinaries||5,344.60||5,615.80||5.1%|
|Hang Seng (HK)||21,914.40||22,760.98||3.9%|
|CAC 40 (France)||4,637.06||4,764.07||2.7%|
|Nikkei 225 (Japan)||19,033.71||18,996.37||-0.2%|
Nikkei 225 Index was doing catch-up in the last month but still negative from the start of the year. Shanghai Composite was still down 8.8%. Singapore’s STI was up only 2.5%.
It would be interesting to see the end of 2016. Would this stock rally continue?
Copyright © 2016, limkimtong for Living Investment
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