US equity indexes
On July 27–August 3, 2017, the S&P 400 Mid-Cap Index (IVOO) fell 1.3%—the most among our list of major equity indexes. It had the highest negative correlation of 69.7% with US crude oil active futures among major US equity indexes. Oil and gas companies account for 3%–4% of the equity index.
The Dow Jones Industrial Average Index (DIA) was the outperformer among our list of equity indexes. It had the least negative correlation of 7.1% with US crude oil active futures on July 27–August 3, 2017. During this period, the S&P 500 Index (SPY) was slightly in the red. SPY had a correlation of -42.4% with US crude oil active futures. Both of these equity indexes have allocations of 6%–7% to the energy sector.
European equity indexes such as the FTSE 100 Index (EWU) and the CAC 40 Index (EWQ) had negative correlations of 87% and 97% with US crude oil futures in the week ending August 3, 2017. During this period, the FTSE 100 Index rose 0.4%, while the CAC 40 Index fell 1.1%—despite both of the indexes having over 10% exposure to energy companies.
The Energy Select Sector SPDR ETF (XLE) fell 1.7%. XLE was the third-largest loser among the SPDR sector-based ETFs in the last five trading sessions. The Utilities Select Sector SPDR Fund (XLU) rose 1.7% and was the largest gainer. The SPDR S&P Telecom ETF (XTL) fell 2% and was the largest loser among the sector-based SPDR ETFs.