Weekly market review
Week ending 8th January 2016
Global markets had their worst start to a new year in decades, with falls due to concerns over China’s slowing economy and worries of the knock-on effects. The US stock market ended the week down 5.9%, while the STOXX Europe 600 (600 companies of different sizes across 18 European countries) and TOPIX (main Japanese Stock Exchange) ended the week down 6.7% and 6.4%, respectively. The Chinese Shanghai Index plummeted 10.0%, as losses in China’s domestic stock market triggered trading restrictions twice during the week.
US Treasuries and core European government bond yields started the year lower too, as investors moved into ‘safe haven’ assets, as a result of the volatility in equity markets.
The US Dollar Index regained its strength this week, finishing up 0.73%. Although the Japanese Yen traded mostly flat, the Euro and British Pound lost ground against the US dollar, closing at $1.09 and $1.47, respectively. The US Dollar Index rose 9.3% in 2015, capping another dominant year for the US Dollar.
West Texas Intermediate crude oil fell 10.5% to $33.16 a barrel, trading at its lowest level since December 2003, despite mounting tensions between Saudi Arabia and Iran. Similarly, Brent oil slumped to $33.55 a barrel.
Source: Goldman Sachs Asset Management. Adapted by FundCalibre. This material is for information purposes only and does not in any way constitute financial advice.
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