Markets: US Climbs as Rest of World Falters

Emerging markets have been punished by the trade-war escalations, but also in response to Turkey, Argentina and Venezuela’s persistent economic problems

Mark Preskett 6 September, 2018 | 8:10AM
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Investment markets continue to be dominated by the growth in US stocks. The US buoyancy, which seems to be almost defying gravity, has seen both equities and the US dollar rise further. Therefore, a glance at the broad international indices could be misleading. Despite historic highs for the global benchmarks, we continue to witness significant dispersion underneath. This includes a painful period for many key markets.

For example, UK, European and Asian markets have not fared well. The UK fell 2.8% during August, meaning year-to-date performance is practically flat. This was coupled by losses in Germany, down 3.5%, France, down 2.3%, Italy falling 9%, and China, down 3.9%. Japan returned 1%.

Equity Market Performance has Significant Dispersion (in Local Currency Terms)

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About Author

Mark Preskett  is a Senior Investment Consultant & Portfolio Manager for Morningstar UK