We have passed three quarters of 2018. Which countries did well and which countries had gone negative with regard to their stock indices? I did a comparison between end of 2017 and end of September 2018. Information was taken from The Business Times.
At the top was USA. US S&P 500 was up 8.4%. Japan did well too (+6.0%). Brazil, India, Taiwan, Vietnam and Australia were all positive.
At the other end, Philippines PCCOMP was down 15.0%. China’s Shanghai Composite was down 14.7%. These two countries did very badly. Hong Kong, Indonesia, South Korea, Singapore, Eurozone, UK and Malaysia were all negative.
|World Equity Indices||29-Dec-17||28-Sep-18||Change (%)|
|US S&P 500||2,687.54||2,914.00||8.4%|
|US Dow Jones||24,719.22||26,439.93||7.0%|
|Japan Nikkei 225||22,764.94||24,120.04||6.0%|
|Australia S&P/ASX 200||6,065.13||6,207.56||2.3%|
|UK FTSE 100||7,630.87||7,538.65||-1.2%|
|Eurozone Stoxx 50||3,517.88||3,425.57||-2.6%|
|South Korea KOSPI||2,467.49||2,343.07||-5.0%|
|Hong Kong HSI||29,919.15||27,788.52||-7.1%|
Source: The Business Times
Singapore’s STI was down 4.3%. Expectation of Singapore economic growth for this year would not be better than 2017 because of the trade war between the US and China.
The Philippines, China, Hong Kong, Indonesia, South Korea and Singapore are facing headwinds affecting their economies. Their equity indices suggest a lack of investor confidence in their stock markets.
We are facing uncertain times for global economies. Investing has been difficult. There are too many moving parts: trade war waged by US, Brexit outcome, oil prices going up, ultra low interest rates environment disappearing, Fed raising interest rates, Middle East tensions, US mid-term election for Congress. All these are making me nervous.
Data between end of 2017 and end September 2018:
Brent Crude Oil had moved up from US$66.36 to US$81.94 (+23.4%)
Gold had moved down from US$1,296.98 per oz to US$1,183.78 (-8.7%)
Singapore local currency 10-year bond yield moved up from 1.990% to 2.491% (+0.501 percentage point)
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