With Focus on Interest Rates, Equity Markets See Pull-Back

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NASDAQ WEEKLY MARKET PULSE

June 26, 2013

WITH FOCUS ON INTEREST RATES, EQUITY MARKETS SEE DRAMATIC PULL-BACK, LED BY HOMEBUILDERS

The sell-off during the latter part of last week was driven by perceived hawkish Fed commentary and global deleveraging, as rate-sensitive corners of the market were down significantly. The NASDAQ Composite Index (IXIC) dropped 3.9%.

"The scrutiny of Fed communications around QE3 and China's cash crunch have brought volatility back into the market," said Dave Gedeon, Managing Director, NASDAQ OMX Global Indexes. "All asset classes were hit particularly hard in the past week due to fear that the Fed's actions will ultimately bring rates up and cause equities to fall. In addition, if China continues on a negative news trend, commodities will continue to be at risk."

 

Notable Index Moves This Week

The NASDAQ EM Europe Index (NQEMEU) (-8.37%) and NASDAQ China Index (NQCN) (-8.16%) were the biggest decliners overseas with interbank funding dominating the headlines. In addition, China reported softening manufacturing figures, which helped drive global concerns.

 

Gold and silver have fallen to 33-month lows on the uncertainty surrounding the timing of QE tapering and more concerns in China. The PHLX Gold/Silver Sector Index (XAU) has dropped 13.06% over the past five trading days.

 

Finally, homebuilders and housing stocks suffered steep losses on heightened worries about the impact of higher mortgage rates. The PHLX Housing Sector Index (HGX) fell 8.98% through yesterday's close.

 


TOP WEEKLY INDEX MOVERS  (+ / -)

 
TOP 5 EQUITY INDEXES:  6/18 - 6/25 
PHLX HOUSING SECTOR INDEX (HGX) (HGX)  -8.98%              
NASDAQ EM EUROPE INDEX (NQEMEUR)  -8.37%          
NASDAQ CHINA INDEX (NQCN)  -8.16%       
NASDAQ EMERGING MARKETS INDEX (NQEM)  -6.97%    
NASDAQ OMX GLOBAL WATER INDEX (GWATERL)  -6.80% 
 
TOP 5 COMMODITY INDEXES:  6/18 - 6/25 
PHLX GOLD/SILVER SECTOR INDEX (XAU)  -13.06%             
NASDAQ COMMODITY ENERGY INDEX ER (NQCIENER)  -7.23%         
NASDAQ COMMODITY GOLD INDEX ER (NQCIGCER)  -6.72%       
NASDAQ COMMODITY NATURAL GAS INDEX ER (NQCINGER)  -6.54%       
NASDAQ COMMODITY BRENT CRUDE INDEX ER (NQCICBER)  -4.58%     


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Nasdaq.com Blog , Business

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