Five of Eight World Markets Advance as China Leads

On Monday, October 5, global equities moved in step with the US market as 5 of 8 tracked funds closed in positive territory. The broad world fund closed +0.6%, tracking the US fund at +0.7%. The standout move on the board was China, roughly twice the size of its usual day. That advance led all tracked markets at China +2.0%, while at the bottom of the board, Eurozone -0.4% showed the steepest decline.

These figures reflect US-listed exchange-traded funds at the New York close on Monday, October 5. For a US investor, a fund tracking Japan or Europe captures how those markets were valued during New York trading hours, rather than their local regular sessions.

In Asia, US-listed Chinese equities rallied to China +2.0%, helping lift Emerging Markets +1.6%. Mainland Chinese exchanges were closed for a national holiday, but overseas listings gained traction after softer US labor data reduced expectations for further interest rate increases. The session brought a milestone for Japan, its highest close in a year. Elsewhere in the region, India +0.1% finished flat and South Korea -0.2% closed slightly lower.

Europe stood as the primary pocket of weakness. The region was weighed down by Eurozone -0.4%, alongside Germany -0.1% and an unchanged finish in United Kingdom 0.0%. European equities faced pressure from widening government bond spreads and fiscal debates in France, as well as political uncertainty following a snap election call in Spain.

French equities faced particular drag from large-cap industrial shares, including a sharp decline for Schneider Electric following an acquisition agreement, which pushed French benchmark shares to six-month lows.