Market Watch - Global Shares

04 Oct 2012

The MSCI World Index fell 0.8% in US$ terms and 0.7% in A$ terms, dragged lower by the US market. The A$ was almost unchanged against the US$ in October, hovering around US$1.04.

US equity markets fell, led by NASDAQ (-4.5%). The Dow Jones (-2.5%) and S&P 500 (-2.0%) also retreated. A weaker Q3 corporate earnings reporting season led markets lower. As at the end of October, 63% of S&P 500 companies had beaten earnings expectations, while 37% missed expectations. The disappointment came from the revenue side, with only 36% companies beating revenue expectations.

European equity markets were typically stronger; Italy (+2.9%), France (+2.2%), Spain (+1.7%) and Germany (+0.6%) all rose. The UK FTSE 100 Index rose 0.7%.

Markets were mixed in Asia. The Nikkei rose 0.6%, with the Bank of Japan announcing another round of asset purchases. Elsewhere Hong Kong (+3.9%) and Malaysia (+2.2%) rose. Korea (-4.2%) and the China (-0.8%) both fell.

Among the sectors, Financials (+2.2%) outperformed while IT (-5.7%) underperformed.