Investors digested the Fed’s decision to raise rates by dipping back into the market and allowing several indices to recover some ground lost last week. Four of the seven indices shown above are posting negative returns on a YTD basis, with Japan’s Nikkei 225 occupying 2015’s top spot thus far with a strong gain of about 8.4%. The rout in commodities has not been kind to Canada’s S&P/TSX composite, handing it the dubious distinction of being this year’s worst performer to date (-10.92%).
Last week was a good week for equity investors as each of the indices ended higher. Germany’s DAX was last week’s top performer with a gain of 6.8% followed by France’s CAC 40 at +4.7%. The French CAC 40 continues to lead on a YTD basis. China’s recent rate cut and musings about further European QE could see further gains next week.
Each of the indices I track ended squarely in the red last week as negative news reports – corporate and economic – and large currency moves sent investors fleeing stocks.
The Chinese Yuan devaluation, disappointing Chinese manufacturing numbers, and poor earnings coupled with reduced forecasts from American blue chips Deere and HP were among the negative news bites which sent investors bailing out of stocks and seeking safety in treasuries.
On a more positive note, Germany’s DAX, France’s CAC 40 and Japan’s Nikkei 225 are still up 3.25%, 8.38%, and 11.38% respectively since the beginning of the year despite this week’s market carnage.
A review of how some of the major stock market indices did over the past week:
The Security Whisperer 