Developed and emerging markets stock markets saw strong returns in January whether measured in U.S. dollars or local currencies, according to the Standard & Poor's/Citigroup World by Numbers global equity index review released today.
The S&P/Citigroup Global Composite index, weighted 93.73% developed markets and 6.26% emerging markets, was up 5.35% for the month.
The S&P/Citigroup Developed World Index gained 5% in the month, primarily fueled by the S&P/Citigroup European Broad Market index, which makes up 29.29% of the developed index and was up 6.98%. The Asia-Pacific index, with 17.41% of the developed index, was up 5.12%; and the North America index, at 53.3% of the developed index, was up 3.9%, including a 3.54% gain in the U.S. S&P/Citigroup index. The U.S. makes up 49.4% of the developed index.
The S&P/Citigroup Emerging Markets index rose 11.09% in January, its best monthly performance since January 2001. All returns are in U.S. dollars.
"Ignoring energy prices, investors seemed to have been focused on a number of positive factors in January," Nicholas Aninos, analyst at Standard & Poor's Index Services, said in a statement. "In Europe, production and unemployment numbers reported during January were strong, as were consumer and business confidence figures. The situation in the U.S. was similar, but only to a lesser degree, with the belief that the Federal Reserve is nearing the end of its run on interest rate increases."