Market trends

Throughout 2022 and into 2023, the EM gauge has shown lower forecast and realized volatility than the global DM benchmark. A new whitepaper investigates the drivers of this anomaly.

Using Axioma’s Macroeconomic Projection Model, we decompose the risk factors that drove returns in the STOXX Global Broad Infrastructure between 2020 and 2022. The results show the index had a positive exposure to the risk model’s inflation factors, meaning it stood to benefit from rising global inflation expectations.

The STOXX Global 1800 index rose 7% in dollars and 5.1% in euros last month, amid expectations that inflation worldwide may have peaked and that any recession in key developed economies may be mild.

The STOXX Global 1800 index fell 3.9% in dollars last month, for a loss of 17.9% in 2022. Momentum stocks led the retreat in the year while automobiles were the worst-performing sector. Dividend stocks performed relatively well despite a background of rising interest rates.

“The overarching story around the components that make up Metaverse still have a very long-term appeal when it comes to growth and innovation,” said Arun Singhal, global head of product management at Qontigo, in an interview with ETF.com.

The STOXX Global 1800 index added 7.1% in dollars last month, matching its performance in October. The benchmark has still lost 14.5% in 2022, poised for its worst year since 2008.

The FAANGs — Facebook (now Meta), Amazon, Apple, Netflix and Google (i.e., Alphabet) — are having an annus horribilis. But they still have gains to show for the past three years, and, importantly for investors, the group’s influence on the US market has only decreased so much.

The STOXX Global 1800 index rose 7.1% in dollars last month, after falling to a two-year low. While most economists rightly forecast the Federal Reserve’s fourth consecutive hike of 75 basis points on Nov. 2, speculation grew during October that the central bank could indicate it would slow the pace of monetary tightening.

While ETF strategies focusing on the environment and general ESG have captured 39 billion euros this year, little to no money has gone to funds targeting principally social and governance issues, according to data from Qontigo’s Market Intelligence Team.

The STOXX Global 1800 index dropped 9.3% in dollars last month, taking its retreat in 2022 to 25.5%. The Federal Reserve, European Central Bank and Bank of England increased the cost of borrowing in the month, with the first two hiking by a larger-than-average 75 basis points.

The STOXX Global 1800 index dropped 4.1% in dollars last month, taking its retreat in 2022 to 17.9%. Investors are bracing for even tighter monetary policy as central banks fight higher-for-longer inflation.

About 85% of respondents in the Index Industry Association (IIA)’s second annual ESG survey indicated ESG has become more of a priority for their firms in the past year, even as equity prices fell and energy markets were roiled by Russia’s invasion of Ukraine.