Investment Market Update
Asian markets retreated following another cautious session on Wall Street overnight. Investors have headed to the sidelines as they digest the Federal Reserve’s most recent policy meeting and await the closely watched US jobs report due later on Friday.
US stocks closed little changed Thursday as investors assessed fourth quarter earnings reports and economic data met analysts’ expectations.
UK stocks rose on Thursday after the Bank of England raised its economic growth forecasts and left interest rates unchanged. Shares in Royal Dutch Shell were up by about 1.3% after the oil giant reported its latest results.
- Snap is trying to raise $3bn in an initial public offering that could be the largest US tech IPO in years, according to documents that provide the first glimpse inside the owner of the messaging app Snapchat. Evan Spiegel, 26-year-old co-founder and chief executive, will own a stake worth up to $5.5bn, if the company succeeds in its aim of going public with a valuation of up to $25bn, with an additional $750m bonus for a successful IPO. Bobby Murphy, 28-year-old fellow founder and chief technology officer, has the same stake.
- In November, the Bank of England said the resilience of the British economy after the vote for Brexit should not be over-interpreted and suggested that pain had merely been deferred. On Thursday, with surveys continuing to show little sign of a slowdown, it conceded that stronger demand is likely to persist. As a result, the BoE significantly upgraded its economic forecasts, while leaving its inflation forecast and interest rate policy on hold. Mark Carney, the BoE governor, said “this doesn’t mean the referendum is without consequence” — the new forecasts imply that the economy will be 1.5% smaller in three years' time, compared with its forecast in May before the Brexit vote. But this is significantly better than the 2.5% reduction that was pencilled in last November.
|FTSE All Share||3,880.91||0.4%||0.2%||12.5%|
|FTSE Small Cap||5,232.94||0.1%||1.7%||11.0%|
|St. James's Place||1,071.00||-0.6%||5.6%||3.9%|
|Euro Stoxx 600||361.95||-0.3%||0.1%||-1.2%|
|Dow Jones Ind||19,884.91||0.0%||0.6%||13.4%|
|MSCI AC Asia Pacific||141.89||0.1%||5.1%||2.3%|
|MSCI World (Developed)||1,795.11||0.1%||2.5%||5.3%|
|MSCI AC World (Dev & Em)||434.02||0.1%||2.9%||5.6%|
|MSCI Emerging Markets||915.21||0.2%||6.1%||8.6%|
|MSCI AC World Value||197.56||0.1%||1.6%||9.5%|
|MSCI AC World Growth||224.72||0.1%||4.2%||1.8%|
|FTSE Gilts All Stocks||3,464.66||0.5%||-1.7%||8.5%|
|FTSE Index Linked All Stocks||636.04||0.3%||-0.1%||21.2%|
|ML Sterling Corporate Bonds||377.70||0.4%||-0.9%||10.7%|
|ML Global High Yield Bonds||349.54||0.2%||2.1%||15.0%|
|Brent Crude Oil||56.56||-0.4%||-1.6%||23.4%|
|Consumer Goods and Services||20,351.45||1.1%||3.4%||9.6%|
|Oil & Gas||8,133.21||0.9%||-4.9%||54.2%|
|$ per £||1.25||-0.3%||1.4%||-16.3%|
|€ per £||1.16||0.0%||-0.8%||-15.7%|
|¥ per £||141.60||0.0%||-2.0%||-22.7%|
|VIX Index (Volatility)||11.93||1.0%||-15.0%||-22.9%|
|Baltic Dry Index||770.00||-2.0%||-19.9%||101.1%|
|BoE Base Rate||0.25%|
|LIBOR (3 months)||0.00%|
|Consumer Price Index||1.60%|
|Retail Price Index||2.50%|
|Yields / Ratios|
|FTSE 100 Adj P/E||26.78|
|FTSE All Share Adj P/E||24.18|
|FTSE All Share Yld||3.89%|
|15yr Gilt Yield||1.79%|
|10yr Gilt Yield||1.38%|
|10yr US Tres Yield||2.47%|
Market prices will reflect the last closing prices with the exception of the Asian markets which may be still trading at the time the data is obtained. The data for these markets is therefore a snapshot of live trading data obtained between 06.45 and 07.15 GMT. Growth is shown cumulative and is not annualised. A positive currency movement indicates the £ appreciating against the other currency. Performance data does not account for the re-investment of dividends. This information has been reproduced by kind permission of Bloomberg and does not necessarily reflect the opinions of St. James's Place Wealth Management. St. James's Place considers the information to be reliable but it is not intended to provide a sufficient basis on which to make an investment decision.
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