World Markets Review for First Quarter 2017 | Capital Group

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Market Commentary

April 2017

World Markets Review for First Quarter 2017

Global stocks rallied amid strong corporate earnings growth and improving economic data in the United States, Europe and Japan. Several key market indexes hit a series of new highs, fueled by expectations that newly elected U.S. President Donald Trump would deliver business-friendly policies, including tax cuts and regulatory reductions.

Economically sensitive stocks led markets higher, highlighted by a 12% gain in the information technology sector. Health care stocks rose sharply as U.S. lawmakers failed to repeal the Affordable Care Act, reducing uncertainty surrounding the legislative overhaul. Emerging markets stocks also rallied on brighter prospects for China’s economy.

Equity Index Returns (%)

March 2017

1Q 2017

YTD 2016

U.S.

dollar

Local

currency

U.S.

dollar

Local

currency

U.S.

dollar

Local

currency

S&P 500

0.1

0.1

6.1

6.1

12.0

12.0

MSCI ACWI

1.2

1.1

6.9

5.7

7.9

9.0

MSCI ACWI EX USA

2.5

2.2

7.9

5.2

4.5

7.0

MSCI World

1.1

1.0

6.4

5.4

7.5

9.0

MSCI Emerging Markets IMI

2.5

1.9

11.7

7.9

9.9

8.7

MSCI EAFE

2.8

2.4

7.2

4.7

1.0

5.3

MSCI Europe

4.0

3.5

7.4

6.0

−0.4

7.2

MSCI Pacific

0.6

0.6

6.9

2.5

4.2

2.3


Source: RIMES


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Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses or the collective investment trust's Characteristics statement, which can be obtained from a financial professional, Capital or your relationship manager, and should be read carefully before investing. 

Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and not to be comprehensive or to provide advice. 

Terms and Definitions
A market capitalization-weighted index based on the results of approximately 500 widely held common stocks.
MSCI All Country World ex USA Index is a free float-adjusted market-capitalization-weighted index that is designed to measure equity market results in the global developed and emerging markets, excluding the United States.
MSCI All Country World Index is a free float-adjusted market-capitalization-weighted index that is designed to measure results of more than 40 developed and emerging equity markets.
MSCI EAFE (Europe, Australasia, Far East) Index is a free float-adjusted market-capitalization-weighted index that is designed to measure developed market equity results, excluding the United States and Canada.
MSCI Emerging Markets Investable Markets Index measures large, mid and small-cap segments, covering approximately 99% of the free float-adjusted market capitalization of more than 20 emerging equity markets.
MSCI Europe Index is a free float-adjusted market capitalization-weighted index that is designed to measure results of more than 10 developed equity markets in Europe.
MSCI Pacific Index is a free float-adjusted market capitalization- weighted index that is designed to measure the equity market results across 5 Developed Markets countries in the Pacific region.
MSCI World Index is a free float-adjusted market-capitalization-weighted index that is designed to measure results of more than 20 developed equity markets.