Weekly Recap: Paradox of Thrift

world.2015-4-17.2015-4-24

Equities

Major
DAX(DEU) +1.05%
CAC(FRA) +1.13%
UKX(GBR) +1.09%
NKY(JPN) +1.87%
SPX(USA) +2.18%
MINTs
JCI(IDN) +0.46%
INMEX(MEX) +1.18%
NGSEINDX(NGA) -1.48%
XU030(TUR) +3.81%
BRICS
IBOV(BRA) +4.90%
SHCOMP(CHN) +2.48%
NIFTY(IND) -3.49%
INDEXCF(RUS) +1.58%
TOP40(ZAF) +3.10%

Commodities

Energy
Heating Oil +2.53%
RBOB Gasoline +4.33%
Brent Crude Oil +2.97%
Ethanol -1.12%
Natural Gas -4.16%
WTI Crude Oil +3.44%
Metals
Copper -1.08%
Palladium -1.66%
Gold 100oz -2.15%
Silver 5000oz -3.07%
Platinum -3.70%

Currencies

USDEUR:-0.78% USDJPY:+0.13%

MINTs
USDIDR(IDN) +0.56%
USDMXN(MEX) +0.16%
USDNGN(NGA) -0.25%
USDTRY(TUR) +1.08%
BRICS
USDBRL(BRA) -3.55%
USDCNY(CHN) -0.05%
USDINR(IND) +1.92%
USDRUB(RUS) -2.42%
USDZAR(ZAF) +0.35%
Agricultural
Corn -4.14%
Cotton +5.64%
Feeder Cattle +1.27%
Wheat -1.57%
Soybean Meal -0.10%
Sugar #11 +0.00%
Coffee (Robusta) -0.22%
White Sugar +0.78%
Cattle +2.17%
Cocoa +1.29%
Coffee (Arabica) +1.83%
Lean Hogs +1.58%
Lumber +3.72%
Orange Juice -1.00%
Soybeans +0.03%

Credit Indices

Index Change
Markit CDX EM +0.02%
Markit CDX NA HY +0.02%
Markit CDX NA IG +0.08%
Markit iTraxx Asia ex-Japan IG +0.29%
Markit iTraxx Australia +2.10%
Markit iTraxx Europe +2.28%
Markit iTraxx Europe Crossover -0.19%
Markit iTraxx Japan -0.15%
Markit iTraxx SovX Western Europe +2.70%
Markit LCDX (Loan CDS) +0.00%
Markit MCDX (Municipal CDS) -1.28%
With the Opposition (Congress, mostly) blocking pretty much every reform measure, the Modi magic is dead by a thousand cuts.
A weak Monsoon could stoke inflation and dampen rate-cut expectations.
Indian equity markets were a aberration in a sea of green…

Nifty Heatmap

CNX NIFTY.2015-4-17.2015-4-24

Index Returns

For a deeper dive into indices, check out our weekly Index Update.
index performance.2015-4-17.2015-4-24

Advance Decline

advance.decline.line2.2015-4-17.2015-4-24

Market Cap Decile Performance

Decile Mkt. Cap. Adv/Decl
1 (micro) -3.87% 70/63
2 -2.51% 63/70
3 -2.25% 60/73
4 -3.61% 58/74
5 -3.80% 61/72
6 -3.02% 58/75
7 -3.28% 58/74
8 -3.48% 58/75
9 -3.61% 62/71
10 (mega) -3.65% 65/68
A clean vertical slice…

Top Winners and Losers

GLENMARK +3.61%
M&MFIN +5.70%
TATASTEEL +7.08%
BOSCHLTD -14.14%
MCDOWELL-N -11.16%
WIPRO -10.85%
Who would’ve thunk that Bosch can collapse like a mid-cap momentum stock?

ETF Performance

GOLDBEES +0.65%
INFRABEES -0.93%
BANKBEES -1.95%
JUNIORBEES -2.00%
CPSEETF -3.58%
NIFTYBEES -3.87%
PSUBNKBEES -5.98%
Gold held steady because the rupee collapsed…

Yield Curve

yield Curve.2015-4-17.2015-4-24

Bond Indices

Sub Index Change in YTM Total Return(%)
GSEC TB +0.08 +0.12%
GSEC SUB 1-3 -0.07 +0.03%
GSEC SUB 3-8 +0.02 -0.02%
GSEC SUB 8 +0.03 +0.05%
The curve barely budged…

Investment Theme Performance

Equity Mutual Funds

Bond Mutual Funds

Thought for the weekend

When governments introduce austerity measures, they are trying to reduce their net borrowing – in effect, they are raising their savings rate. Such attempts to increase saving actually lead to lower, not higher, investment – and since saving equals investment, actual savings fall. So what we have here is an empirical confirmation of the existence of the paradox of thrift!

Source: Crowding In and the Paradox of Thrift