Weekly Market Update: January 22, 2010

Sept. 18, 2010 - PRLog -- Weekly Market Update
The Economy
• Tighter proposed banking regulation from the U.S. and initial steps to scale back lending by China, combined with gloomy economic data, resulted in uncertainty about the ongoing recovery—yet another bump on what we expect will be a long and winding road to recovery.
• The Obama administration proposed the “Volcker Rule,” legislation to limit the size and trading practices of banks.
• The U.S. Index of Leading Economic Indicators gained 1.1%, fueled by an increase in building permits for December.
• The Philadelphia Fed Index of manufacturing activity dropped to 15.2, which was weaker than expected and below its median level of 18.0.
• U.S. jobless claims rose unexpectedly; consensus estimates
predicted that claims would fall.
• U.S. housing starts fell 4% in December, and total housing starts for 2009 were the lowest on record dating back to 1959.
• European Central Bank President Jean-Claude Trichet warned that the euro-zone recovery would like be uneven despite government stimulus efforts.

Economic Calendar
• Existing home sales and Dallas Fed Manufacturing Activity will be released January  5.
• Consumer confidence and the Richmond Fed Manufacturing Index will be released January 26.
• New home sales and the Federal Open Market Committee’s rate decision will be released January 27.
• Initial jobless claims and durable goods will be released January 28.
• Gross domestic product, employment costs and the Chicago Purchasing Managers Index will be released January 29.

Stocks
• Global markets fell on anxiety that additional regulation and tighter monetary policies may hinder the fragile recovery.
• In the U.S., small caps outperformed their large-cap brethren. Growth stocks outperformed their value counterparts.
• In the U.S., Telecommunications was the best-performing sector, while Materials lagged behind the broader markets.
• In the UK, investors flocked to defensive sectors; leaders were Healthcare, Utilities, Telecommunications and Consumer Staples. Materials and Financials lagged.
• In Europe, Healthcare, Consumer Staples and Information Technology led while Materials and Financials lagged.
• Oil and gold both fell at the end of the week in response to Obama’s plan to regulate banks and China’s possible rate increase.

Bonds
• Global government bonds rallied on weaker economic data and the announcements from China and President Obama.
• Demand for U.S. Treasuries rose as investors worried about the impact of increased regulation on economic growth.
• Corporate bonds fell as investors snapped up government bonds.
• High-yield and emerging-market debt fell as investors sought safety in government bonds.
The Numbers as of Friday 1
Week YTD 1 Year Friday's
Jan 22, 2010 Close
Global Equity Indices
MSCI World ($) -2.4% -0.1% 40.5% 1166.9
MSCI EAFE ($) -2.4% -0.3% 44.4% 343.2
MSCI Emerging Mkts ($) -2.9% -0.8% 90.8% 981.2
US & Canadian Equities
Dow Jones Industrials ($) -4.1% -2.4% 25.2% 10173.0
S&P 500 ($) -3.9% -2.1% 31.9% 1091.8
NASDAQ ($) -3.6% -2.8% 50.5% 2205.3
S&P/ TSX Composite (C$) -2.9% -3.4% 33.7% 11343.4
UK & European Equities
FTSE All-Share (£) -2.7% -1.7% 33.5% 2714.1
MSCI Europe ex UK (€) -2.9% -2.4% 32.3% 897.4
Asian Equities
Topix (yen) -2.6% 3.7% 18.2% 940.9
Hong Kong Hang Seng ($) -4.3% -5.2% 63.7% 20726.2
MSCI Asia Pac. Ex-Japan ($) -4.6% -2.2% 82.5% 407.3
Latin American Equities
MSCI EMF Latin America ($) -4.5% -4.3% 96.0% 3938.3
Mexican Bolsa (peso) -4.4% -4.0% 59.7% 30830.9
Brazilian Bovespa (real) -4.0% -3.5% 74.7% 66220.0
Commodities ($)
West Texas Intermediary Spot -4.8% -6.5% 75.6% 74.2
Gold Spot Price -3.3% -0.3% 27.6% 1093.4
Global Bond Indices ($)
Barclays Capital Global Agg. 0.3% 1.5% 8.1% 176.4
JPMorgan Emerging Mkt Bond -0.3% 0.9% 29.3% 470.6
10-Year Yield Change (basis points*)
US Treasury -7.7 -24.0 100.5 3.60%
UK Gilt -1.7 -9.4 41.6 3.92%
German Bund -4.7 -17.2 10.7 3.22%
Japan Govt Bond 0.0 3.5 9.0 1.33%
Canada Govt Bond -12.8 -24.2 61.6 3.37%
Currency Returns
US$ per euro** -1.8% -1.3% 1.1% 1.4131
Yen per US$ -1.0% -1.1% 1.1% 89.88
US$ per £** -0.9% -0.8% 10.4% 1.6115
C$ per US$ 2.8% -0.2% -13.2% 1.0584
Source: Bloomberg, total return. Equity returns are index price only. *100
basis points = 1 percentage point. **A gain in US$ per euro and £ = a
decline in the dollar, and vice-versa.
Weekly Market Update: December 18, 2009
Weekly Market Update: January 22, 2010

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Index returns are for illustrative purposes only and do not represent actual fund performance. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results. Diversification may not protect against market risk. There are risks involved with investing, including loss of principal.
This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice. This information is for educational purposes only. SEI Investments Management Corporation (SIMC) is the adviser to the SEI Funds, which are distributed by SEI Investments Distribution Co (SIDCO). SIMC and SIDCO are wholly owned subsidiaries of SEI Investments Company. To determine if the Fund(s) are an appropriate investment for you, carefully consider the Fund’s investment objectives, risk factors and charges and expenses before investing. This and other information can be found in the Fund’s prospectus, which can be obtained by calling 1-800-DIAL-SEI. Please read it carefully before investing.


This does not constitute an endorsement by John Jastremski, The Retirement Group or the author of the book. The opinions expressed are solely those of the author and may or may not be a representative opinion of The Retirement Group or John Jastremski. John Jastremski, Jeremy Keating, Erik J Larsen, Frank Esposito, Patrick Ray, Robert Welsch, Michael Reese Philip Catalan, Brent Wolf, Andy Starostecki, The Retirement Group, AT&T, Verizon

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