Emerging markets beat developed markets in September

IndicesEmerging market stock indices grew faster than developed markets in September, due to slower-than-average US growth.

Emerging markets gained 6.4% overall in September, according to S&P Dow Jones Indices, while developed markets gained 5.2%. With the US excluded, however, developed markets beat emerging with growth of 7% in the month.

Four emerging markets achieved double-digit gains in September – Turkey, Brazil, India, and Thailand – as did four developed markets: Greece, Finland, Spain, and New Zealand.

“Politics shifted to the US from its normal European platform, as global Fed watching turned to Washington’s budget battle and debt limits,” says Howard Silverblatt, senior index analyst, S&P Dow Jones Indices. “The headline drama was in every paper and dominated the financial reporting, but investors, at least at this point, did not share the level of doom.”

Year-to-date returns for the US are still “generally pleasing” says Silverblatt. However, he warns that markets could be affected by the arrival of the US debt limit date of October 17, after which the US could technically default.

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