Another Week Of Across-The-Board Gains For Global Markets
James Picerno | Jul 24, 2017 07:17AM ET
For a second week in a row, all the broad categories of global markets posted gains. Led by a sharp advance in foreign government bonds in developed markets, the major asset classes dispensed a clean sweep of price increases, based on a set of exchange-traded products.
The top performer for the five trading days through July 21: SPDR Barclays International Treasury Bond (NYSE:BWX) (BWX), which climbed 1.8%. The advance lifted the ETF to a nine-month high.
A key driver of BWX’s recent rally is the ongoing slide in the US dollar. The US Dollar Index slumped to its lowest close in more than a year on Friday. “A weaker dollar seems to be the path of least resistance given the soft data coming out of the US and the political uncertainty,” noted Michael Hewson, chief markets strategist at CMC Capital Markets.
Last week’s biggest relative loser: Vanguard FTSE Emerging Markets (NYSE:VWO), which climbed 0.2%. The increase was the smallest gain among the major asset classes, although the weekly advance was enough to keep the fund close to its highest close in nearly three years.
“Whatever is dampening US dollar and the US rates, it has been very positive for emerging markets,” Ken Peng of Citi Private Bank tells the Economic Times.
For one-year performances, foreign stocks in developed markets continue to hold the top spot. Vanguard FTSE Developed Markets (NYSE:VEA) inched higher for a second week in a row, boosting the ETF’s one-year return to 20.6%. Here, too, a weak dollar has been a bullish factor.
On the flip side, US real estate investment trusts (REITs) have slipped into last place for one-year results. Vanguard REIT (NYSE:VNQ) is off 3.8% for the 12 months through July 21, the worst performance among the major asset classes. Despite weakness relative to the year-earlier price, VNQ still closed last week near its highest price for the year to date.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.