According to a S &P Global stock market review, the 12 -month returns continued strong for emerging markets which posted a 53.9% weighted one-year return compared with the developed markets? 21.5%.
The emerging markets were much stronger with 16 of the 25 markets positive for an average of 3.38% compared with the weighted return of 4.53%, said the report.
Meanwhile, the report informed that world interest rates were mixed as some decreased on liquidity as quality concerns grew, and others reacted to increases by central banks. Upward rate pressure from flight-to-safety was slightly countered by lower-grade selling.
Investment vs non-investment spreads grew to reflect the new realisation of risk.
China increased its rate for the third time this year, with the Banks of Canada and England both increasing their rate by 25 bps.
The European Central Bank and the US maintained their rates. S&P expects the US to decrease its rate by 25 bps in the first quarter of 2008.
China increased its rate for the third time this year; the Banks of Canada and England both increasing their rate by 25 bps; and the European Central Bank and the U.S. maintained their rates. Posting strong positive gains were Thailand (14.17%), Turkey (13.62%) and China (10.47%). Negative returns were modest, with Mexico (-3.44%), the
Philippines (-3.33%) and Pakistan (-3.25%) retracting the most. For the 12-months, 24 of the 25 were positive (average 56.64%), with only Jordan (-4.91%) being down.
World markets were volatile in July with emerging markets showing a strong weighted return of 4.53% and developed markets weighted down by poor performances in the US, Japan and the UK.
In the US markets posted new record highs on July 19, then fell 6.3% by the end of the month. US concerns over liquidity, US housing and fixed income instruments relating to housing were the chief reasons for the downturn, but globally, the events were viewed as a US issue.
