The developed markets outside of Asia finished 2012 with yet another month of trade outflow while Asian developed markets saw another month of trade inflow, making December 2012 the third consecutive month. The financial sector in both the developed markets and emerging markets saw significant trade inflow. Trade costs decreased in both the developed and emerging markets from November.
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In November 2012, MSCI World Index and MSCI North America indices continue to
experience trade outflow, althought not to the level of magnitude in September
2012. Similar to October, Asian regions continue to see trade inflow. Regional
emerging markets experienced trade outflow. Resources sectors of MSCI World and MSCI North America indices saw significant trade outflow. For the regional emerging markets, information technology sector saw trade outflow. Trade costs decreased in both the developed and emerging markets from October.
In October 2012, MSCI World Index and MSCI North America indices continue to experience trade outflow, although not to the level of magnitude in September 2012. Regional emerging markets also experienced trade outflow. Financial and health sectors of MSCI World and MSCI North America indices saw trade inflow. For the regional emerging markets, basic material sector saw trade inflow. Trade costs increased in both the developed and emerging markets from September.
Relative to the month prior, spread in October 2012 increased by 4%, 5% and
3% for the S&P500® (4.65bps), Russell 2000® (41.78bps) and MSCI World indices (12.64bps). Month-on-month spread level for the MSCI Emerging Market Index decreased by 0.3% to 23.47bps.
In September 2012, MSCI World and MSCI North America indices experienced trade outflow, while the regional emerging markets experienced trade inflow. The utility sector of MSCI World and MSCI North America indices was the only sector that experienced trade inflow. For regional emerging markets, the financial and utility sectors experienced trade inflow. Trade costs decreased in both developed and emerging markets from August.
Year-to-date and relative to August 2012, spread and volatility levels decreased in September 2012 for S&P500, Russell 2000, MSCI World and MSCI Emerging Markets indices. Quarter-on-quarter, we note an increase in spread for constituents of the Russell 2000, MSCI World and MSCI Emerging Markets indices. We also note an increased in volatility levels for constituents of the S&P500, Russell 2000, MSCI World indices.
In August 2012, both regional developed and emerging MSCI indices experienced trade outflow.Trade inflows in the IT sector in the MSCI World and MSCI North America indices in August 2012 bucked the consistent trade outflows that commenced since March 2012.Trade costs increased in both the developed and emerging markets.
