It was a very mixed month for world equity markets, with net monthly changes ranging from -4.8% (Germany), -4.1% (USA), -1.9% (South Africa), -1.6% (China), -1.0% (Hong Kong), +0.5% (Australia), +1.0% (Japan), +3.4% (India), +6.3% (Brazil), to +11.4% (Russia).
Lets take our regular look at ten of the world equity markets.
USA - Dow
Germany – DAX
Japan – Nikkei
Brazil – Bovespa
Russia - RTSI
India – SENSEX
China – Shanghai comp'
South Africa – Dow
Hong Kong – Hang Seng
Australia – AORD
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Summary
Five world equity markets were net higher for August, with five net lower.
Germany lead the way lower, whilst the Russian market saw very powerful gains.
Japan, Brazil, Russia, and India settled above their respective monthly 10MA.
All ten world equity markets have negative monthly momentum.
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Looking ahead
It will be a short four trading week, with a light schedule.
Earnings:
M - *CLOSED*
T - PATH, COUP, HQY
W - NIO, ASO, GME, AEO, CASY
T - FCEL, BILI, LOVE, DOCU, ZS, RH, SWBI
F - KR
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Econ-data:
M - *CLOSED*
T - PMI/ISM serv'
W - Intl' trade, Fed Beige book (2pm)
T - *Powell, 9.10am*, ECB meeting, Weekly jobs, EIA Pet' & NG report, consumer credit (3pm)
F - Wholesale invent'
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Final note
Friday's reversal in the US equity market was another reminder that price action is increasingly unstable. In theory, the equity bears should broadly control things into early November.
There are innumerable 'wild cards' that would merit the excuse for a massive drop in global equities. China/Taiwan is the obvious one, but there are others.
Just look across to the economic, and societal basketcase that is Europe. A populace who chose to play along to the green agenda, with the added bonus of starting a proxy war with Russia.
It should be clear, the European economy - and I include the UK in that, are set to collapse this Fall. How could winter 2022/23 not be seen as anything other than hellish?
A broken consumer, unable to afford to heat their homes.
Businesses... some already closing down, on unsustainable energy costs.
Civil unrest across multiple countries.
Do you think the US economy and associated capital markets, will somehow be insulated from what happens on the eastern side of the Atlantic?
If you love market drama, the next few months should be highly entertaining. If you can't stomach such volatility... this is not going to be the place for you, and I'd suggest you return after the midterms are out of the way.
Its time to order some extra popcorn, as supplies are limited, and its always good to be first in line! For more of the same...
For details: https://www.tradingsunset.com
Enjoy the holiday break!
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*the next post on this page will likely appear 5pm EST on Tues' Sept'6th
