The S&P 500 Index broke out to all-time highs on Monday, only to be dragged down by the fall in oil prices. Monday’s gains were large enough to overcome the rest of the week and major markets finished higher. The S&P 500, the MSCI All Country World Index, and the Bloomberg BarCap U.S. Bond Index all managed to rise 0.2%. Investors, concerned about the Federal Reserve raising rates too quickly, continue to push long-term bond rates lower.
Oil has declined more than 20% since mid-February, primarily due to the strong rebound in the U.S. shale oil drilling and production. U.S. crude oil production now stands at more than 9.3 million barrels a day, near the August 2015 high. The global supply glut continues to be a key concern.
Internationally, MSCI finally decided to include China’s A-shares in its emerging market index. The move validates the country’s recent attempts to build greater liquidity into its stock exchanges in. Previously, only Chinese companies listed in Hong Kong or non-Chinese exchangers were included in the index.