World Markets Update: A Major Recovery Is Happening In The Far East


Here is the latest weekend snapshot of seven major world indexes. The S&P 500, DAX and FTSE 100 finished a volatile week virtually flat. But The Far East posted big gains, with the Bombay SENSEX the week’s winner, up 4.44%.

The chart below illustrates the comparative performance of World Markets since March 9, 2009. The start date is arbitrary: The S&P 500 and Bombay SENSEX hit their lows on March 9th, the Nikkei 225 on March 10th, the DAX on March 6th, the FTSE on March 3rd, the Shanghai Composite on November 4, 2008, and the Hang Seng even earlier on October 27, 2008. However, by aligning on the same day and measuring the per cent change, we get a better sense of the relative performance than if we align the lows.


A Longer Look Back

Here is the same chart starting from the turn of 21st century. The relative over-performance of the emerging markets (Shanghai, Bombay, Hang Seng) is readily apparent. However the pattern has generally been reversing over the past few months.



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