Euro Stoxx 50 Index: Some Markets Recovering Faster

COVID-19 has had a devastating effect on stock markets around the world, but as some begin to recover, EXANTE senior analyst, Viktor Argonov looks at which markets are recovering quicker than others, such as the Euro Stoxx 50 index.

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Euro Stoxx 50 Index vs North American Index

The general state of the economy in the EU, shown by the Euro Stoxx 50 index, is worse than for any North American index.

However, a lot can be learnt from countries such as Switzerland and Germany, which have nearly recovered, with their indices being only 3% below the level they were at the beginning of the year.

The UK may on the other hand is in deep recession, and Italy and France are still suffering with their indices still 15-19% lower than their January values.

Nevertheless, it seems that Global markets as a whole are on the upward trend. The Global Dow index best reflects the average state of the global economy has almost returned to where it was in January after dropping by 35% as a result of the crisis. But its value is still 8% less than at the beginning of the year and 10% less than the pre-crisis maximums shown during the winter. The economies of individual countries are best compared to Global Dow (whether any specific parameter is better or worse).

This rating lists the indices of the leading trading platforms of the world's largest economies, as well as the Global Dow index, the European Union's Euro Stoxx 50 index, and the indices belonging to small but rich countries by GDP per capita: Switzerland, the UAE, Australia, and Saudi Arabia.

The data is listed for the end of July.

region	country	index	Dec, 30	Max in Jan-Feb	Min in March	Jul, 29	July, 29 / Dec, 30	Jul, 29 / Max Jan-Feb
North America	USA	Nasdaq Composite	9021	9731	6880	10402	+15%	+7%
East Asia	China	Shanghai Composite	3040	3116	2660	3273	+8%	+5%
East Asia	South Korea	Kospi	2176	2251	1566	2258	+4%	+0%
West Asia	Turkey	XSIST	118	125	83	123	+4%	-1%
North America	USA	S&P 500	3235	3380	2305	3218	-1%	-5%
West Europe	Germany	DAX	13249	13789	8442	12835	-3%	-7%
West Europe	Switzerland	SMI	10617	11263	8161	10277	-3%	-9%
East Asia	Japan	Nikkei 225	23657	24041	16553	22428	-5%	-7%
North America	Canada	TSX Composite	17099	17944	11228	16169	-5%	-10%
East Europe	Russia	iMOEX	3046	3220	2113	2895	-5%	-10%
East Asia	India	NIFTY 50	12256	12362	7570	11263	-8%	-9%
World		Global Dow	3247	3300	2135	2972	-8%	-10%
North America	USA	Dow Jones	28635	29398	19174	26379	-8%	-10%
South America	Brazil	BVSP	115645	119528	63570	104109	-10%	-13%
West Europe	EU	Euro Stoxx 50	3691	3865	2386	3304	-10%	-15%
West Asia	Saudi Arabia	TASI	8345	8475	5960	7459	-11%	-12%
Oceania	Australia	ASX 200	6805	7190	4531	6010	-12%	-16%
East Asia	China (Hong Kong)	Hang Seng	28451	29056	22805	24802	-13%	-15%
West Europe	Italy	FTSE MIB 40	23506	25478	14470	19903	-15%	-22%
West Europe	France	CAC 40	5982	6111	3755	4929	-18%	-19%
Oceania	Indonesia	JKSE	6300	6325	3938	5102	-19%	-19%
West Europe	Britain	FTSE 100	7587	7675	4994	6128	-19%	-20%
West Asia	UAE	DFM General	2770	2863	1682	2063	-26%	-28%

North America and East Asia

These show the best recovery rates. In particular, the Nasdaq Composite and Shanghai Composite indices, as well as the South Korean Kospi index, have fully recovered from their crash during the crisis, and even surpassed the levels shown at the beginning of the year. The reasons for this are obvious. The pandemic in East Asia began earlier, but the measures taken were swift and effective. The countries in North America took a worse hit from the pandemic, but they turned out to be economically powerful enough to keep the indices high. As for Nasdaq Composite, it enjoyed an especially privileged position as it included many IT giants that remained in high demand during the outbreak.

Euro Stoxx 50 index Vs Eastern Europe Stocks

Represented by Russia in the table, as the situation there has many unique features. Its economy is recovering at a slightly above average rate, and its index is only 5% lower than at the beginning of the year – along with Japan and Canada, which have also fared relatively well.

Other regions

The situation is at its worst in other regions: West Asia, Oceania, and South America. Out of all countries listed from these regions, only Turkey is in the upper half of the rating, as it has already exceeded the level shown at the beginning of the year by 4%, and is only 1% below the pre-crisis maximums. Things are at their worst in countries such as the UAE and Indonesia: -19-26% compared to the beginning of the year, and -19-28% compared to pre-crisis maximums.