Investment Market Update
Asian stocks followed their US counterparts lower as worries about the earnings outlook weighed on industrial and technology shares. The 10-year Treasury yield steadied after piercing the 3% level for the first time in four years.
US stocks declined after coming under heavy pressure as the combination of a fresh push higher for Treasury yields and some worrying news on the corporate earnings front unsettled Wall Street.
UK stocks climbed, bolstered by gains for oil majors, as the price of Brent continued to climb to fresh three-year highs.
- Government borrowing has fallen to its lowest annual level in 11 years, according to the latest official figures. Borrowing fell by £3.5bn to £42.6bn in the 2017-18 financial year, the Office for National Statistics said. That was below the estimate of £45.2bn produced by the independent Office for Budget Responsibility last month. Borrowing narrowed to 2.1% of gross domestic product (GDP) last year, down from 10% in 2010.
- Whitbread is to split off Costa, the UK's biggest coffee chain, as a separate firm, after activist pressure. The demerger will be "pursued as fast as practical and appropriate" to optimise value for shareholders. "We will ensure prior to separation each business is sufficiently developed and well-positioned," said Whitbread chairman Adam Crozier.
|FTSE All Share||4,086.96||0.2%||-3.2%||9.0%|
|FTSE Small Cap||5,831.48||0.2%||-1.4%||14.9%|
|St. James's Place||1,123.00||-2.0%||-8.4%||20.9%|
|Euro Stoxx 600||383.11||0.0%||-1.6%||7.7%|
|Dow Jones Ind||24,024.13||-1.7%||-2.8%||25.1%|
|MSCI AC Asia Pacific||173.01||0.2%||-0.5%||28.7%|
|MSCI World (Developed)||2,081.52||-0.7%||-1.0%||20.1%|
|MSCI AC World (Dev & Em)||508.08||-0.7%||-1.0%||21.6%|
|MSCI Emerging Markets||1,154.21||-0.4%||-0.4%||34.2%|
|MSCI AC World Value||219.33||-0.3%||-2.1%||15.2%|
|MSCI AC World Growth||277.21||-1.1%||0.2%||28.3%|
|FTSE Gilts All Stocks||3,516.40||-0.2%||-2.0%||3.0%|
|FTSE Index Linked All Stocks||615.67||-0.2%||-5.0%||2.3%|
|ML Sterling Corporate Bonds||391.86||-0.1%||-2.2%||5.7%|
|ML Global High Yield Bonds||377.85||-0.1%||0.1%||9.7%|
|Brent Crude Oil||73.86||-1.1%||12.3%||14.5%|
|Consumer Goods and Services||19,002.98||-0.1%||-15.0%||13.6%|
|Oil & Gas||9,338.43||1.6%||3.1%||6.0%|
|$ per £||1.39||-0.2%||3.2%||9.5%|
|€ per £||1.14||0.0%||1.4%||-4.0%|
|¥ per £||151.51||-0.3%||-0.5%||5.3%|
|VIX Index (Volatility)||18.02||10.3%||63.2%||-21.4%|
|Baltic Dry Index||1,330.00||1.8%||-2.6%||42.1%|
|BoE Base Rate||0.50%|
|LIBOR (3 months)||0.75%|
|Consumer Price Index||2.50%|
|Retail Price Index||3.30%|
|Yields / Ratios|
|FTSE 100 Adj P/E||13.18|
|FTSE All Share Adj P/E||13.55|
|FTSE All Share Yld||3.98%|
|15yr Gilt Yield||1.79%|
|10yr Gilt Yield||1.54%|
|10yr US Tres Yield||3.00%|
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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