As the Summer Olympic Games open in Rio de Janeiro, global index provider FTSE Russell looked at host country index performance before and after recent Games.
Market returns around the 2008 Summer Olympic Games in Beijing, as reflected by the FTSE China A50 Index, and the 2012 Summer Olympic Games in London, as reflected by the FTSE 100 Index, show the host country market rising in the short term but returning to earth after that.
- After falling nearly 40% in the year ended July 31, 2008 as Beijing prepared to host the 2008 Summer Olympic Games, the FTSE China A50 Index rose nearly 32% the next year, only to fall 28% in the following year ended July 30, 2010.
- After rising just 0.7% for the year ended July 31, 2012 as London prepared to host the 2012 Summer Olympic Games, the FTSE 100 Index rose nearly 22% in the year following London’s hosting of the Summer Olympic Games, yet gained just 5.3% in the year after that.
As Rio finishes its preparations for the 2016 Summer Olympic Games, the FTSE Brazil Index has risen 11.6% in the year ended July 29, 2016.
Catherine Yoshimoto, Senior Product Manager, FTSE Russell:
"While a myriad of factors contribute to global market index performance for any particular period, it is interesting to see a short term market bounce for recent host nations as illustrated by the FTSE Russell indexes. The breadth and depth of global indexes from FTSE Russell gives investors the capability to examine global equity market performance from a variety of angles and perspectives to help increase their market understanding."
Going For Gold: FTSE Russell Index Performance & Recent Summer Olympic Games
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