US Markets Are Rebounding, Here's What's Happening In The Rest Of The World

To say expectations surrounding the market were grim heading into 2019 is a bit of an understatement. However through January, the S&P 500 has already regained more than half of the losses it sustained over the final quarter of 2018. That’s a gain of about 9.5 percent. Thank you January effect.

Putting that in context, that’s a faster rate of increase than the index posted over same period in 2018, results further emphasized when comparing the charts for those spans in a broad market ETF like the Direxion Daily S&P 500 Bull 3X Shares SPXL, both of which show a substantial uptick heading into the new year.

Source: Yahoo Finance

However, U.S. equity isn’t the only place where a silver lining is beginning to show through. Below, we’ll take a look at four international ETFs that have seen 30 percent or more growth over the start of 2019.

Mexico

First off, the Direxion Daily MSCI Mexico Bull 3X Shares MEXX is up a whopping 31 percent on the year, primarily from enthusiasm for Andrés Manuel López Obrado, the country’s new, recently elected president. In one of his first major displays of authority in office, he has taken aim at stopping thieves from siphoning gas from pipelines belonging the county’s socialized oil company. This approach to curbing waste likely helped steady investor’s nerves as Obrado’s finance ministry has outlined a $500 million bond sale program to fund the country’s fiscal budget.

Source: Yahoo Finance

China

After disappointing growth and export data hit the Shanghai exchange to the tune of 0.7 percent and threatened to ruin what was turning into a healthy rally, the Chinese government announced just a day later a massive tax cut plan with an estimated impact of around $300 billion. That same day, China’s central bank also issued 560 billion yuan ($83 billion) to its constituent branches. That activity rekindled the market and caused the Direxion Daily FTSE China Bull 3X Share YINN to jump 8.25 percent in just two days. The ETF is up nearly 40 percent YTD.

Japan

In a stunning reversal that mirrors Wall Street’s own, Japan’s Nikkei has bounced after spending most of 2018 being devoured by Bears. The Direxion Daily MSCI Japan Bull 3X Shares JPNL, which tracks the MSCI Japan Index (NDDUJN), is up 41 percent year-to-date, largely due to strong December manufacturing data both internally and from its global partners. However, weaker economic signals within the country might spoil the comeback, especially if international trade conditions worsen.

Source: Yahoo Finance

Russia

Climbing an impressive 43 percent YTD, the Direxion Daily Russia Bull 3X Shares RUSL spiked early in January thanks largely to its exposure to the country’s energy industry. Along ith OPEC’s planned cuts, Russia’s own contribution has already fallen by 30,000 barrels/day from a December high of 11.45 million b/d, and he country plans to further cut that amount by an additional 20,000 b/d. However, worries of rising U.S. stockpiles and uncertainty surrounding global demand has caused oil prices to waver in the month, which might put a damper on the Russian bear’s bull run.