Brazil and Russia Boost Global Equities While Germany and China Lag

The MSCI World Index is up 1.9% year-to-date, a tepid start but where will global equities go from here?

Morningstar 28 July, 2016 | 10:37AM
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Investors in global equities, after initially being severely rattled by the unexpected Brexit vote in the U.K. on June 23, have recovered their nerve since, and are now showing a small positive return year-to-date. The MSCI World Index is up 1.9% year-to-date in capital value, in the currencies of its component markets, and by 2.7% in U.S. dollar terms.

Emerging markets have done well, with a year-to-date gain of 9.6%

In the U.S., the S&P 500 has made a series of all-time highs, and at the time of writing had just closed at another one at 2173, for a year-to-date capital gain of 6.3%. The U.K. has staged a strong post-Brexit vote recovery, with the FTSE 100 Index up 7.8% year-to-date. European shares, however, have been markedly less resilient: The FTSE Eurofirst300 Index is down 6.4%, with both German – DAX index down 5.6% – and French – CAC index down 5.5% – equities contributing.

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