Investment Market Update
Asian stocks advanced as benchmark indexes traded near multi-year highs and a rebound in oil boosted energy producers. The New Zealand dollar declined after the nation’s central bank said it will keep rates at a record low for an extended period.
US stocks shrugged off morning declines, closing Wednesday mixed after the abrupt firing of FBI director James Comey signalled more political upheaval to Washington. Gains in energy and tech stocks helped lead the rebound and propelled the Nasdaq index to a new high of 6,129.14.
UK stocks ended the day 0.6% higher. Barratt Developments ended 2.2% higher after the housebuilder said annual profit would be at the top end of forecasts. The builder has been boosted by rising house prices and government schemes to help people get on the housing ladder.
- Three months ago, Mark Carney found some additional slack in the economy, giving the Bank of England more leeway to keep a dovish stance on policy even as it raised forecasts for both growth and inflation. Now, in the latest quarterly Inflation Report, he can point to more concrete reasons for caution, including a first-quarter slowdown in economic growth and the pressure on consumers from rising prices.
- Barclays Plc’s Jes Staley said he needs another six to 18 months before the bank can generate an acceptable return for investors, while warning the firm’s ability to cut costs further is limited by the need to upgrade its aging technology systems.“The group’s statutory return on equity is 9%, and we want to get that to 11% - I think we have a very good chance of doing that within the next 6 to 18 months,” the chief executive officer said.
|FTSE All Share||4,053.08||0.5%||4.6%||12.5%|
|FTSE Small Cap||5,621.45||0.6%||9.3%||11.0%|
|St. James's Place||1,172.00||-0.2%||17.9%||3.9%|
|Euro Stoxx 600||396.45||0.2%||9.7%||-1.2%|
|Dow Jones Ind||20,943.11||-0.2%||6.0%||13.4%|
|MSCI AC Asia Pacific||150.24||0.3%||11.3%||2.3%|
|MSCI World (Developed)||1,895.93||0.1%||8.3%||5.3%|
|MSCI AC World (Dev & Em)||459.86||0.2%||9.0%||5.6%|
|MSCI Emerging Markets||995.09||0.5%||15.4%||8.6%|
|MSCI AC World Value||204.46||0.2%||5.2%||9.5%|
|MSCI AC World Growth||243.81||0.1%||13.1%||1.8%|
|FTSE Gilts All Stocks||3,556.47||0.4%||0.9%||8.5%|
|FTSE Index Linked All Stocks||647.34||1.3%||1.7%||21.2%|
|ML Sterling Corporate Bonds||390.99||0.3%||2.6%||10.7%|
|ML Global High Yield Bonds||359.08||0.1%||4.8%||15.0%|
|Brent Crude Oil||50.22||3.1%||-14.4%||23.4%|
|Consumer Goods and Services||22,211.86||0.3%||12.8%||9.6%|
|Oil & Gas||7,870.25||1.1%||-7.9%||54.2%|
|$ per £||1.29||0.0%||4.9%||-16.3%|
|€ per £||1.19||-0.2%||1.3%||-15.7%|
|¥ per £||147.82||0.1%||2.3%||-22.7%|
|VIX Index (Volatility)||10.21||2.5%||-27.3%||-22.9%|
|Baltic Dry Index||1,005.00||-0.2%||4.6%||101.1%|
|BoE Base Rate||0.25%|
|LIBOR (3 months)||0.32%|
|Consumer Price Index||2.30%|
|Retail Price Index||3.10%|
|Yields / Ratios|
|FTSE 100 Adj P/E||24.77|
|FTSE All Share Adj P/E||23.52|
|FTSE All Share Yld||3.81%|
|15yr Gilt Yield||1.56%|
|10yr Gilt Yield||1.17%|
|10yr US Tres Yield||2.41%|
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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Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, endorsed, reviewed or produced by MSCI. None of the MSCI data is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such.