AS OF DECEMBER 2011
European Indices (U.K., France, Germany, Switzerland)
All quotes in Euros
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Commentary
European markets were generally positive during the fourth quarter of 2011 with the U.K. leading the pack, gaining 11.8% in EUR terms. Despite the gains, Europe continues to be volatile due to the continuing Sovereign debt crisis.
Asian Indices
All quotes in Euros
Commentary
- In local currency terms, the Australian market fell in 8 of the 12
months of 2011. Since the early 1990s, only 2008 experienced more
down months (9). Concerns about the momentum of China's growth continue to worry the Australian markets.
- MSCI China experienced volatile monthly returns during the fourth
quarter, ending up over 7% for the period. Despite these positive
numbers, some concerns remain over China's ecomomic growth.
- In EUR terms, the Hang Seng Index gained over 9% during the fourth
quarter of 2011. Concerns over Europe's debt crisis continued to weigh
on market sentiment throughout the quarter.
- The Straits Times index rose 3.1% in EUR terms during the fourth quarter
of 2011, but underperformed other Asian countries (measured by the
MSCI Asia-Pacific ex Japan) during the period. The market continues to be
driven by concerns of recession within the Eurozone, along with gradually
declining local earnings figures.
- TOPIX was flat in December and declined 18.9% in 2011, when measured
in local currency terms. In EUR terms, the TOPIX was up just over 1.0% during fourth quarter.
- Recent volatility in the KOSPI was caused by the death of Kim Jung-il
and subsequent realization that no drastic change of power is expected.
Problems in Europe continue to impact the market. Despite a relatively
strong fourth quarter, the market was down 11% in local currency; in EUR terms, the market was up 9.5% during the fourth quarter.
Source: J.P. Morgan's Investment Analytics & Consulting Group, J.P. Morgan Equity Research and Morgan Markets.
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