Global Markets Rise in Step With US Equities

On Wednesday, September 2, all 8 of the 8 tracked international markets gained ground. The world as a whole moved higher, with the broad global fund advancing +0.5%, moving in the same direction as the US market's +0.4% rise. South Korea +1.7% delivered the session's strongest gain, while United Kingdom +0.1% recorded the smallest advance. The session's most unusual move belonged to India, noticeably bigger than its usual day.

These numbers reflect US-listed funds at the New York close. When an investor looks at Japan +0.9% or South Korea +1.7%, that is how those markets looked to a US investor at the close of trading in New York. Because local foreign exchanges close hours before New York, US-traded international funds price in afternoon domestic developments that overseas exchanges have not yet seen.

Earlier in local trading, overseas exchanges faced pressure as heightened geopolitical tensions lifted crude prices and bond yields. In Seoul, equities dropped 3.99% on inflation concerns, while Indian benchmarks declined as rising energy costs and bond yields weighed on local shares. In London, the FTSE 100 fell 0.30% while 10-year gilt yields touched multi-year highs.

Conditions shifted during New York trading hours as technology stocks advanced while Treasury yields and energy prices stabilized. That afternoon strength lifted US-traded international funds into positive territory. The rebound supported South Korea +1.7%, alongside gains in Japan +0.9% and India +0.8%. Broad emerging equities followed with Emerging Markets +0.6%, while European funds posted modest gains including Eurozone +0.4%, Germany +0.2%, and United Kingdom +0.1%.

Looking ahead, international markets face several scheduled economic releases. In Asia and Europe, investors are watching services purchasing managers index readings along with eurozone producer price data. In the US, upcoming releases include revised second-quarter productivity and cost figures.