Societe Generale Global Quantitative Research analyst Andrew Lapthorne provides us with an overview of the global equity markets. We take a look at the best and worst performers across selected parameters detailed in this report.
Global equity markets overview
(Figures in parenthesis indicate negative values)
|World Market||Absolute Performance % YTD||Japan 35.4%||Emerging Markets (4.5%)|
|Emerging Markets||Absolute Performance % YTD||EM Asia (1.5%)||EM Latin America (11.5%)|
|Global Sectors||Absolute Performance % YTD||Healthcare 23.3%||Basic Matls (9.9%)|
|Sectoral Performance YTD||Oil & Gas||BD 71.2%||KO (14.2%)|
|Sectoral Performance YTD||Basic Materials||JP 30.2%||CN (29.5%)|
|Sectoral Performance YTD||Industrials||JP 30.2%||RS (94.3%)|
|Sectoral Performance YTD||Consumer Goods||JP 41.6%||KO (4.3%)|
|Sectoral Performance YTD||Health Care||CN 89.4%||KO (15.8%)|
|Sectoral Performance YTD||Consumer Services||IT 40.3%||CH (24.6%)|
|Sectoral Performance YTD||Telecom||JP 60.9%||IT (8.4%)|
|Sectoral Performance YTD||Utilities||FR 37.1%||RS (40.6%)|
|Sectoral Performance YTD||Financials||JP 38.0%||IN (23.4%)|
|Sectoral Performance YTD||Technology||HK 52.3%||BR (10.4%)|
|Global PE Ratio Aggregates||2014e||BRIC 8.2||Pacific ex-Japan 13.6|
|Global Regional Earnings Growth||2014e||Europe ex. UK 16.1%||BRIC 8.1%|
|Global Regional Price/Book Value||2014e||BRIC 1.1||Europe 1.5|
|World Indices Correlation||MSCI World U$||S&P 500 Composite 0.97||TOPIX Mothers 0.32|
Notes for global equity markets:
1. World Market: In the table above Japan puts up the best YTD show of 35.4%, yet its performance over 3 months is the worst at (-0.6%) primarily because of the impact of the imposition of additional sales tax by the Japanese government.
2. Emerging Markets: Of the emerging market indices, the Brazilian Bovespa index was the worst off YTD (-13.3%) while the South African (FTSE/JSE All Shares) index performed the best (+11.9%).
3. Global Sectors: Basic Materials (-9.9%) was down chiefly because of the poor performance of sub-sectors Mining (-27.5%), and Industrial Metals & Mining (-12.5%).
4. Mining was down in CH (-34.8%), IN (-29.8%), CN (-41.3%) and US (-27.5%) YTD.
5. Metals and Mining was down in the UK (-46.2%), FR (-27.5%), IN (-22.4%) and CN (-18.3%) YTD.
6. Sectoral Performance YTD (Financials): The striking underperformance out of India straddles all its sub-sectors – the red ink here is way beyond that seen in any other country.