World Markets Update: Mostly Positive for Week, But Hang Seng Renews Its Decline

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 |  Includes: DAX-OLD, EPI, EWG, EWH, EWQ, FXI, SPY, VGK
by: Doug Short

Here's a weekend snapshot of major world indexes. The table at right shows the performance over the past week.

The DAX hit an interim high on Monday, the FTSE on Tuesday, and the S&P 500 on Friday. Despite its Monday high, the DAX also finished the week in fractionally in the red. The Shanghai was the top performer for the week, up 1.85%, and the Hang Seng was the biggest loser, down 1.93%. I'm not a technical analyst, but it looks to me like a head-and-shoulders pattern in the Hang Seng.

The chart below illustrates the comparative performance of World Markets since March 9, 2009. The start date is arbitrary: The S&P 500 hit a low 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 4.4 months earlier on October 27, 2008. However, by aligning on the same day, we get a better sense of the present-day synchronous behavior of the markets than if we align the lows.

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(Click to enlarge)

A Longer Look Back

Here's a similar chart starting from the turn of 21st century — this time with the addition of the Bombay SENSEX. This index has been a dramatic outperformer, although its now taking a breather — down 5.43% from its high on November 5th.

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(Click to enlarge)

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