Monday, June 01, 2009

Emerging Markets Close at 8-Mo. High; Global Recession's Over; Everybody's Talking Green Shoots

The MSCI Emerging Markets Index closed today above 800 for the first time since late September 2008, reaching an 8-month high of 802.21.

According to Bloomberg:

Emerging-market stocks climbed the most in four weeks after China’s manufacturing expanded for a third month, boosting commodities prices and spurring speculation the global economy is recovering.

“We see green shoots; everybody is talking about them,” Hans Goetti, who oversees about $10 billion as chief investment officer at LGT Bank in Liechtenstein (Singapore), said in an interview on Bloomberg Television.

The MSCI Emerging Markets Index rose 3.8% to 802.21, the most since May 4. The gauge surged 61% since Feb. 27, the steepest advance since its inception in December 1987, on speculation the worst of the global recession is over. The increase outpaced a 32% rally in MSCI’s developed-market stock measure.


At 6/02/2009 9:26 AM, Anonymous Anonymous said...

Now, if I were the type of person to say, "I told you so," I'd be sayin' it right about now... ;^)

At 6/02/2009 9:33 AM, Anonymous Anonymous said...

Yet ANOTHER green shoot, this one from this morning...

Pending home sales rise 6.7 percent in April

By ALAN ZIBEL, AP Real Estate Writer – 27 mins ago

WASHINGTON – Pending U.S. home sales in April posted the biggest monthly jump in nearly eight years, a sign that home sales are finally coming to life after a long and painful slump.

The National Association of Realtors says its seasonally adjusted index of sales contracts signed in April rose 6.7 percent to 90.3. Economists surveyed by Thomson Reuters expected the index would edge up to 85 from a reading of 84.6 in March. It was the biggest monthly jump since October 2001.

Typically there is a one- to two-month lag between a contract and a done deal, so the index is a barometer for future existing home sales. The index was 3.2 percent above last year's levels and has risen for three straight months after hitting a record low in January.

At 6/02/2009 3:02 PM, Blogger somercet said...

So this means what... markets outside the U.S. are recovering...?

Yea. Maybe some banks on Wall Street can make some money before the tax rates shoot up.


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