September started off with a bang, as global markets soared in the first three trading days of the month.
Global stock markets rallied sharply last week, with both the S&P 500 and the MSCI Emerging Markets Index ending the week 3.8% higher. Your Global Bull Market Alert stock market bets continued to outperform the broader market by a comfortable margin and you have double-digit percentage gains in three of your current positions.
Global stock markets rebounded somewhat this past week, with the MSCI global emerging markets index rising just about 0.5%. World stock markets mostly are gaining in early trading today, after Chinese manufacturing growth picked up and Australia’s economy expanded at its fastest pace in three years. But markets are likely to remain volatile ahead of U.S. jobs figures due Friday.
Global stock markets pulled back sharply early last week, before Chairman Ben Bernanke confirmed the Fed’s willingness to do whatever it takes to keep the economy on track. The Fed chairman’s comments caused bonds to collapse and stock markets to rally sharply on the final trading day of the week. For the week, the Nasdaq fell 1.2%, the S&P 500 dropped 0.7% and the Dow retreated 0.6%. The MSCI Emerging Markets Index ended the week 1.3% lower.
Investor sentiment turned negative in global markets this past week, after a record plunge in home sales in July, adding to evidence that the U.S. economy is stumbling. Global markets as a whole have pulled back — erasing the last month’s worth of gains. With most Asian markets down overnight, you can expect more red ink in today’s trading.
Last week, the relative outperformance of global equity markets compared to U.S. markets continued.