The major equity indexes
declined for the week. Share prices fell sharply on Tuesday in response to a
downgrade to the rating of the sovereign debt of Greece. Investors were also
concerned about a downgrade to the debt of Spain, a much larger economy, which
raised fears of a contagion spreading to other European countries with deep
fiscal shortfalls. U.S. corporate earnings would suffer if European markets
weakened and exports declined as the dollar rose relative to the euro. These
fears abated somewhat later in the week in response to news that Greece was
preparing austerity measures that would permit it to receive an aid package
from other European countries and the International Monetary Fund. A relief
rally on Thursday spurred the largest gain in the Dow since early March. The
week ended on a down note, however, as new concerns arose over financial giant
Goldman Sachs Group and how it may be affected by a Securities and Exchange
Commission investigation into its activities. Investors also bid down retail stocks,
apparently in reaction to a modest decline in a gauge of consumer sentiment.
|
U.S.
Stocks1 |
|||
|
Index2 |
Friday’s Close |
Week’s Change |
% Change |
|
DJIA |
11008.61 |
-195.67 |
5.57% |
|
S&P
500 |
1186.68 |
-30.60 |
6.42% |
|
NASDAQ
Composite |
2461.19 |
-68.96 |
8.46% |
|
S&P
MidCap 400 |
823.06 |
-26.76 |
13.26% |
|
Russell
2000 |
719.45 |
-22.21 |
13.47% |
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 April 30, 2010
During the week, the
Federal Open Market Committee (FOMC) reiterated its assessment that
"economic activity has continued to strengthen and…the
labor market is beginning to improve." Underscoring that statement, the
Commerce Department reported that the U.S. economy grew at an annualized rate
of 3.2% in the first quarter, driven largely by renewed consumer spending. At
the same time, the FOMC stated that "inflation is likely to be subdued for
some time." The FOMC also said that current economic conditions "are
likely to warrant exceptionally low levels of the federal funds rate for an
extended period." (The fed funds rate is the overnight lending rate set by
the Federal Reserve and used by banks to meet their reserve requirements.) The
question on everyone's mind now is when the Federal Reserve will begin to lift
short-term rates, currently set between 0% and 0.25%. Few analysts expect a
rate hike in the near future, but some believe it could take place before the
end of the year. Treasury yields declined following the news, with the two-year
yield dropping below 1%.
|
U.S.
Treasury Yields1 |
||
|
Maturity |
April 30, 2010 |
April 23, 2010 |
|
2-Year |
0.96% |
1.07% |
|
10-Year |
3.66% |
3.76% |
|
30-Year |
4.52% |
4.68% |
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, April 30, 2010.
____________________________
Week Ended April 23, 2010
International
Stocks
Foreign stock markets closed lower for the week ending April 23,
2010 with the broad international measure, the MSCI EAFE Index (Europe,
Australasia, and Far East), losing -1.84%.
|
|
||
|
Region/Country |
Week’s Return |
% Change Year-to-Date |
|
EAFE |
-1.84% |
0.98% |
|
Europe ex-U.K. |
-1.35% |
-2.58% |
|
Denmark |
0.26% |
15.65% |
|
France |
-1.76% |
-5.29% |
|
Germany |
0.30% |
-1.88% |
|
Italy |
-2.07% |
-8.64% |
|
Netherlands |
0.91% |
1.47% |
|
Spain |
-4.23% |
-15.64% |
|
Sweden |
2.57% |
14.83% |
|
Switzerland |
-2.19% |
2.15% |
|
United
Kingdom |
-0.72% |
1.50% |
|
Japan |
-3.46% |
6.65% |
|
AC
Far East ex-Japan |
-0.96% |
2.95% |
|
Hong Kong |
-2.50% |
1.44% |
|
Korea |
0.08% |
9.36% |
|
Malaysia |
0.16% |
12.74% |
|
Singapore |
-0.27% |
4.94% |
|
Taiwan |
-0.86% |
-1.47% |
|
Thailand |
3.15% |
9.69% |
|
EM
Latin America |
-0.02% |
2.58% |
|
Brazil |
-0.37% |
0.05% |
|
Mexico |
0.71% |
10.92% |
|
Argentina |
-0.98% |
9.37% |
|
EM
(Emerging Markets) |
-0.68% |
4.05% |
|
Hungary |
-1.12% |
13.35% |
|
India |
0.10% |
7.02% |
|
Israel |
-0.46% |
6.81% |
|
Russia |
-2.23% |
9.02% |
|
Turkey |
0.14% |
11.28% |
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
-1.43%.
|
|
||
|
Region/Country |
Week’s Return |
% Change Year-to-Date |
|
Developed
Markets |
-1.43% |
-2.50% |
|
Europe |
|
|
|
Denmark |
-0.87% |
-3.03% |
|
France |
-1.03% |
-4.11% |
|
Germany |
-0.87% |
-3.81% |
|
Italy |
-1.60% |
-5.11% |
|
Spain |
-2.11% |
-6.00% |
|
Sweden |
0.46% |
2.15% |
|
United
Kingdom |
-0.76% |
-4.52% |
|
Japan |
-1.92% |
-0.74% |
|
Emerging
Markets |
-0.22% |
4.89% |
|
Argentina |
-1.63% |
6.34% |
|
Brazil |
0.00% |
3.57% |
|
Bulgaria |
-0.49% |
3.49% |
|
Russia |
-0.71% |
4.68% |
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 |
94.260 |
2.14% |
1.24% |
|
Euro |
1.33611 |
1.09% |
6.88% |
|
British
pound |
1.53531 |
0.34% |
4.93% |
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.