Inaugurating Dow 20,000
Markets from the US, the UK and Japan have passed their own long-term or record breaking milestones in January as investors focused on buoyant economic indicators. While their respective central banks sit tight and evaluate the impact of the new US administration, money moved into risk assets across many global markets (Table 1).
- US: Investors moved out on the risk curve, with under-performance to low-risk names gauged by 24-Month Value at Risk
- Developed Europe: Industry-adjusted 12-month Relative Price Strength captured broad market momentum, underscoring improving investor mood
- Developed Pacific: Short sentiment signals, including Demand Supply Ratio and Implied Loan Rate, remained positive indicators in developed Pacific markets outside of Japan
- Emerging markets: Undervalued stocks attractively scored by book value and high beta names outperformed
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This article was published by S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.