Week
Ended November 11, 2011
The
large-cap stock indexes managed to overcome their worst daily decline in nearly
three months and finish higher for the week, while the technology-oriented
Nasdaq and smaller-cap indexes recorded modest losses. Investors kept a close
eye on Europe, although Italy replaced Greece at the center of their focus.
Markets started the week off on a strong note, as investors reacted positively
to reports that the European rescue fund might be expanded. News that Italian
Prime Minister Silvio Berlusconi would step down, potentially clearing the way
for a new government to deal with the country's rapidly escalating debt crisis,
also boosted sentiment. On Wednesday, however, markets tumbled on news that
Europe's largest clearinghouse—an institution that acts as a
marketplace for trading in securities and derivatives—was
increasing margin requirements for investors trading Italian bonds. Growing
doubts about when Berlusconi would step down also seemed to bother investors,
and yields on Italian bonds rose well above 7%—a
threshold that previously signaled an impending bailout in the case of other
troubled Europeans, such as Greece, Portugal, and Ireland. The situation in
Italy appeared to improve as the weekend neared, however, sending yields lower
and markets higher. A respected economist appeared poised to take over from
Berlusconi within the next few days, and the Italian Senate approved important
economic reforms. Investors were also encouraged by U.S. economic data. Weekly
jobless claims continued to move lower, record exports helped lower the
country's trade deficit, and a gauge of consumer sentiment increased to its
highest level in five months.
|
U.S. Stocks1 |
|||
|
Index2 |
Friday's Close |
Week's Change |
% Change |
|
DJIA |
12153.68 |
170.44 |
4.98% |
|
S&P 500 |
1263.85 |
10.62 |
0.49% |
|
NASDAQ Composite |
2678.75 |
-7.40 |
0.98% |
|
S&P MidCap 400 |
892.02 |
-5.61 |
-1.68% |
|
Russell 2000 |
744.63 |
-1.42 |
-5.18% |
This chart is for illustrative purposes only and does not
represent the performance of any specific security. Past performance cannot
guarantee future results.
1Source of data Reuters, obtained through Yahoo! Finance Closing
data as of 4:10 p.m. ET.
2The Dow Jones Industrial Average and the Standard & Poor's 500
Stock Index of blue chip stocks, the Standard & Poor's MidCap 400 Index,
and the Russell 2000 Index are unmanaged indexes representing various segments
by market capitalization of the U.S. equity markets. The Nasdaq Composite is an
unmanaged index representing the companies traded on the Nasdaq stock market
and the National Market System.
____________
Week
Ended November 11, 2011
The
ongoing sovereign debt crisis in Europe, and the political turmoil it has
triggered in Greece and Italy in particular, dominated the headlines during the
week. However, the economic news in the U.S. continued to improve against the
backdrop of the problems emanating from Europe. The U.S. trade gap narrowed in
October more than anticipated, thanks to higher exports and lower imports. The
improvement in our balance of trade with other countries could boost estimates
of third-quarter growth and offset the negative impact of declining wholesale
inventories. In addition, new jobless claims during the week ended November 5
fell to 390,000 from 400,000 a week earlier. That said, it is far too early to
get a clear reading on economic trends as we approach the end of the year. The
turmoil in Europe could still spill across the Atlantic onto U.S. shores and
put a damper on the economic recovery. Treasury yields were fairly stable
during the week as investors breathed a sigh of relief that, for the moment at
least, the debt crisis in Europe is still contained.
|
U.S. Treasury Yields1 |
||
|
Maturity |
November 11, 2011 |
November 4, 2011 |
|
2-Year |
0.23% |
0.22% |
|
10-Year |
2.06% |
2.04% |
|
30-Year |
3.13% |
3.09% |
This
table is for illustrative purposes only. Past performance cannot guarantee
future results.
1Source of data: Bloomberg.com, as of 4 p.m. ET Friday, November
11, 2011.
___________
International Stocks
Foreign stock markets closed lower for
the week ending November 04, 2011 with the broad international measure, the
MSCI EAFE Index (Europe, Australasia, and Far East), losing -5.99%.
|
|
||
|
Region/Country |
Week's Return |
% Change Year-to-Date |
|
EAFE |
-5.99% |
-8.73% |
|
Europe ex-U.K. |
-7.99% |
-10.90% |
|
Denmark |
-5.96% |
-17.31% |
|
France |
-9.17% |
-12.17% |
|
Germany |
-8.52% |
-11.39% |
|
Italy |
-10.21% |
-17.10% |
|
Netherlands |
-6.50% |
-9.17% |
|
Spain |
-9.71% |
-6.84% |
|
Sweden |
-7.55% |
-11.91% |
|
Switzerland |
-6.04% |
-5.24% |
|
United Kingdom |
-3.56% |
-0.69% |
|
Japan |
-5.69% |
-12.66% |
|
AC Far East ex-Japan |
-1.06% |
-8.75% |
|
Hong Kong |
-1.36% |
-11.13% |
|
Korea |
-0.24% |
-3.27% |
|
Malaysia |
-2.01% |
-1.72% |
|
Singapore |
-4.48% |
-10.01% |
|
Taiwan |
-0.74% |
-14.65% |
|
Thailand |
-3.27% |
-4.07% |
|
EM Latin America |
-3.30% |
-14.37% |
|
Brazil |
-3.56% |
-16.06% |
|
Mexico |
-2.83% |
-9.35% |
|
Argentina |
-8.90% |
-37.80% |
|
EM (Emerging Markets) |
-2.02% |
-11.80% |
|
Hungary |
-8.41% |
-28.42% |
|
India |
-1.95% |
-21.71% |
|
Israel |
-5.44% |
-23.91% |
|
Russia |
-4.40% |
-10.21% |
International Bond Markets
International bond markets in developed
countries were lower this week, with the J.P. Morgan Global Government Bond
Less U.S. Index losing -2.25%.
|
|
||
|
Region/Country |
Week's Return |
% Change Year-to-Date |
|
Developed Markets |
-2.25% |
6.46% |
|
Europe |
|
|
|
Denmark |
-0.81% |
12.05% |
|
France |
-2.34% |
6.19% |
|
Germany |
-0.91% |
10.99% |
|
Italy |
-4.94% |
-4.17% |
|
Spain |
-3.48% |
5.49% |
|
Sweden |
-2.06% |
13.02% |
|
United Kingdom |
1.64% |
15.67% |
|
Japan |
-2.78% |
5.78% |
|
Emerging Markets |
0.73% |
9.24% |
|
Argentina |
0.35% |
-7.43% |
|
Brazil |
1.18% |
12.21% |
|
Bulgaria |
0.57% |
2.98% |
|
Russia |
0.71% |
7.76% |
International Currency Markets
On the currency front, the U.S. dollar
was stronger against the major currencies for the week.
|
|
|||
|
Currency |
Close |
Week's Return |
% Change |
|
Japanese yen |
78.180 |
3.10% |
-3.74% |
|
Euro |
1.37591 |
2.94% |
-2.56% |
|
British pound |
1.60261 |
0.73% |
-2.36% |
1U.S. dollars per national currency unit.
Sources: Foreign stock markets and
currency sections are from Rimes Technologies, using MSCI data. International
bond markets are from J.P. Morgan.
Note: All returns are in U.S. dollars.
All bond indices are J.P. Morgan. All stock indices are Morgan Stanley Capital
International (MSCI).
|
Equity Indices |
|
|
EAFE: |
MSCI Europe, Australasia, and Far East Index |
|
Europe Ex-U.K.: |
MSCI Europe ex-U.K. Index |
|
Far East Ex-Japan: |
MSCI AC Far East ex-Japan Index |
|
Latin America: |
MSCI Emerging Markets Latin America Index |
|
Emerging Markets: |
MSCI Emerging Markets Index |
|
Bond Indices |
|
|
Developed Markets: |
J.P. Morgan Global Government Bond Less U.S. Index |
|
Emerging Markets: |
J.P. Morgan Emerging Markets Bond Index Plus |
All charts are for illustrative purposes only and do not represent the
performance of any specific security. Past performance cannot guarantee
future results.