World Markets Update: Shanghai Surges, DAX Plunges
Doug Short | Aug 16, 2015 05:24
Six of the eight indexes on our world watch finished in the red this week. The Shanghai Composite led the pack for the second consecutive week with its 5.91% surge, and it is once again the year-to-date top performer, up 22.59%, bumping France's CAC 40 from the top slot. The S&P 500 was the other finisher in the green with a fractional 0.67% advance. The week's biggest loser was Germany's DAX with its -4.40% plunge.
Here is an overlay of the eight for a sense of their comparative performance so far in 2015.
Here's an updated look at the Shanghai Composite over the past nine years. Below is a log-scale weekly chart illustrating the bubble that peaked in 2007 and the rally that started last year. The plunge from the 2015 peak was astonishingly swift and severe. This week's stellar gain trims its decline from its 2015 high to -23.2%.
Here is a table of the 2015 data performance, sorted from high to low, along with the interim highs for the eight indexes. The Shanghai has reclaimed its top spot and the FTSE has slipped into the red.
h3 A Closer Look at the Last Four Weeks/h3The tables below provide a concise overview of performance comparisons over the past four weeks (through year's end) for these eight major indexes. We've also included the average for each week so that we can evaluate the performance of a specific index relative to the overall mean and better understand weekly volatility. The colors for each index name help us visualize the comparative performance over time.
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The chart below illustrates the comparative performance of World Markets since March 9, 2009. The start date is arbitrary: The S&P 500, CAC 40 and BSE SENSEX hit their lows on March 9th, the Nikkei 225 on March 10th, the DAX on March 6th, the FTSE on March 3rd, the Shanghai Composite on November 4, 2008, and the Hang Seng even earlier on October 27, 2008. However, by aligning on the same day and measuring the percent change, we get a better sense of the relative performance than if we align the lows.
h3 A Longer Look Back/h3
Here is the same chart starting from the turn of 21st century. The relative over-performance of the emerging markets (Shanghai, Mumbai SENSEX and Hang Seng) up to their 2007 peaks is evident, and the SENSEX remains by far the top performer. The Shanghai, in contrast, formed a perfect Eiffel Tower from late 2006 to late 2009.
Check back next week for a new update.
Note: We track Germany's DAXK a price-only index, instead of the more familiar DAX index (which includes dividends), for consistency with the other indexes, which do not include dividends.
All the indexes are calculated in their local currencies.
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