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GRAPHIC-Policy-buoyed Q3 ends; 9 months in market graphics

by on September 28, 2012 2:35 pm GMT
 

LONDON, Sept 28 |
Fri Sep 28, 2012 10:35am EDT

(Reuters) – The unlikely combination of
Spanish bonds and gold were top best performers during a third
quarter of 2012 that was defined by the European Central Bank’s
bond-buying euro rescue plan and more money-printing in the
United States and Japan.

Soft commodities and the dollar were best avoided in the
three months to September, yet most major markets eked out
positive gains in a policy-dominated period.

For 2012 so far, however, hard currency emerging market
sovereign debt and Asian equities outside Japan stand out with
gains of more than 14 percent each.

More generally global equities, emerging markets and gold
have all returned more than 10 percent to date. In fact it was
hard to remain underwater, with even 10-year U.S. Treasuries and
German bunds returning more than four percent.

Country-by-country, Indian and German equity shone. Spain
and Portugal remain in the red.

Portugal, Ireland and Hungary are the big sovereign bond
stars of the year so far – largely on outsize bouncebacks from
from a torrid 2011.

In currencies, you would have done well being long of
Mexican pesos and Hungarian forints against the dollar in the
year to date, but short of Brazilian real and Argentine pesos.

Healthcare and technology stocks were the best performing
equity sectors, while utilities and energy lagged.

Convertible arbitrage and event-driven hedge fund strategies
outperformed there. Macro and equity neutral strategies are
still in the red on average.

BROAD ASSET SHIFTS IN Q3 AND 2012 SO FAR

Graphic on Q3:

COUNTRY EQUITY PERFORMANCE SO FAR IN 2012

BOND MARKET MOVES SO FAR IN 2012

CURRENCIES SO FAR IN 2012

EQUITY SECTORS SO FAR IN 2012

EMERGING MARKET EQUITIES SO FAR IN 2012

COMMODITIES SO FAR IN 2012

HEDGE FUND STRATEGIE