October Brought Developed, Emerging Market Gains

S&P data showed developed equity markets rose 3.4%, while emerging equity markets gained 11.07% in October. According to an S&P news release, 25 of the 26 developed markets increased in October, with Sweden coming in as the lone decliner with a -2.09% loss.

Portugal reversed September’s loss of -2.19% posting a 10.79% gain for the month, while Spain remained close behind increasing +10.28%.

The emerging markets were also profitable in October, with a single loss posted by Hungary of -1.87%.  Notable returns for the month were seen in Jordan (+20.37%), Indonesia (+16.52%) and China (+16.15%), according to the S&P data.

All ten sectors bulled ahead in October, led by Telecommunications at 6.89% and Utilities at 6%.  Health Care showed the lowest advance with a slight increase of 0.88%. 

Looking at the sub-industries, Internet Software & Services was the best performer in October with a 16.06% gain, while Thrifts & Mortgage Finance showed the lowest results with a monthly giveback of 10.43%.

Short-term U.S. interest rates declined in October, with the U.S. Federal Reserve reducing a key interest rate by a quarter of a point on the last day of the month.  Gold reached levels not seen in two decades, mostly due to the market uncertainty, and closed at $787.80, up from September’s $735.50.  Oil remained volatile and also set new record highs, closing up 15.8% at $94.53, up from September’s $81.66.

“Concern over corporate earnings charges placed a heavy burden on financial markets in October,” says Howard Silverblatt, Senior Index Analyst at Standard & Poor’s, in the news release. “However, with the exception of the Thrifts & Mortgage Finance sub-industry, world equity markets showed strong returns this month despite the higher volatility and uncertainty in the marketplace.”

The S&P/Citigroup World by Numbers Report for October can be accessed at www.standardandpoors.com/indices.