World Markets Review for January 2017 | Capital Group

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Market Commentary

February 2017

World Markets Review for January 2017

Global stocks rose modestly, supported by strong corporate earnings and signs of improving economic growth in the U.S., Europe and Japan. Gains were tempered by political uncertainty around the world, including investor worries about upcoming elections in Germany and France. Emerging markets enjoyed the best returns, boosted in part by higher prices for raw materials.

Economically sensitive sectors generally outpaced defensive stocks, underscored by significant gains in the information technology and materials sectors. Consumer discretionary stocks also advanced amid healthy growth in inflation and consumer spending. Energy stocks declined as oil prices slipped on reports of a substantial rise in U.S. crude oil inventories.

Equity Index Returns

January 2017

YTD 2016

U.S. Dollar %

Local %

U.S. Dollar %

Local %

S&P 500

1.9

1.9

12.0

12.0

MSCI ACWI

2.7

1.6

7.9

9.0

MSCI ACWI ex USA

3.5

1.0

4.5

7.0

MSCI WORLD

2.4

1.3

7.5

9.0

MSCI Emerging Markets IMI

5.4

3.9

9.9

8.7

MSCI EAFE

2.9

0.1

1.0

5.3

MSCI Europe

2.1

–0.3

–0.4

7.2

MSCI Pacific

4.4

0.9

4.2

2.3

Source: RIMES


Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

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 funds’ characteristics statement, which can be obtained from a financial professional 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 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 results of more than 40 developed and emerging equity markets, excluding the United States. Results reflect dividends gross of withholding taxes through December 31, 2000, and dividends net of withholding taxes thereafter.
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. Results reflect dividends gross of withholding taxes through December 31, 2000, and dividends net of withholding taxes thereafter.
MSCI EAFE (Europe, Australasia, Far East) Index is a free float-adjusted market capitalization weighted index that is designed to measure developed equity market results, excluding the United States and Canada. Results reflect dividends net of withholding taxes.
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. Results reflect dividends net of withholding taxes.