Daily News – 13 February 2018
Investment Market Update
Asia
Asian shares rose amid signs markets are beginning to stabilize after the biggest weekly drop in two years. Shares in Hong Kong and China led the rally in Asia after the S&P 500 Index posted its biggest two-day advance in 18 months.
US
US shares surged, with financial markets showing signs of recovery after the worst week in two years for American equities. The Nasdaq Composite Index turned positive for 2018, with the Dow Jones Industrial Average and the S&P 500 now down less than 1% since the end of December.
UK
UK shares has closed in positive territory, adding 1.1% to 7,177.06. Steel producer Evraz led the risers, up 5.7% at 352.3p.
Headlines
President Donald Trump proposed a $4.4 trillion federal budget on Monday for fiscal 2019, a plan Congress is expected to all but ignore that would slash entitlements and other domestic programs in favor of higher spending on the military and immigration enforcement.
The government’s planned cap on energy bills should be introduced urgently, to stop customers from being overcharged, a report from MPs says. Competition was not working and had failed to deliver fair prices for consumers, a select committee said.
Market data
| Price | 1d | YTD | 2017 | |
| UK (£) | ||||
| FTSE 100 | 7,177.06 | 1.2% | -6.6% | 7.6% |
| FTSE 250 | 19,379.33 | 0.8% | -6.5% | 14.7% |
| FTSE All Share | 3,946.42 | 1.1% | -6.5% | 9.0% |
| FTSE Small Cap | 5,672.83 | 0.7% | -4.0% | 14.9% |
| Europe (€) | ||||
| Euro Stoxx 600 | 372.93 | 1.2% | -4.2% | 7.7% |
| DAX 30 | 12,282.77 | 1.4% | -4.9% | 12.5% |
| CAC 40 | 5,140.06 | 1.2% | -3.2% | 9.3% |
| US (US$) | ||||
| S&P 500 | 2,656.00 | 1.4% | -0.7% | 19.4% |
| Dow Jones Ind | 24,601.27 | 1.7% | -0.5% | 25.1% |
| NASDAQ | 6,981.96 | 1.6% | 1.1% | 28.2% |
| Asia | ||||
| Hang Seng | 29,842.46 | 1.3% | -0.3% | 38.5% |
| Nikkei 225 | 21,244.68 | -0.6% | -6.7% | 19.1% |
| Australia 200 | 5,855.90 | 0.6% | -3.4% | 7.0% |
| MSCI AC Asia Pacific | 171.29 | 0.4% | -1.4% | 28.7% |
| World (US$) | ||||
| MSCI World (Developed) | 2,075.91 | 1.2% | -1.3% | 20.1% |
| MSCI AC World (Dev & Em) | 506.84 | 1.2% | -1.2% | 21.6% |
| MSCI Emerging Markets | 1,153.37 | 0.9% | -0.4% | 34.2% |
| MSCI AC World Value | 219.49 | 1.0% | -2.0% | 15.2% |
| MSCI AC World Growth | 275.68 | 1.3% | -0.4% | 28.3% |
| Fixed Income | ||||
| FTSE Gilts All Stocks | 3,497.55 | 0.0% | -2.5% | 3.0% |
| FTSE Index Linked All Stocks | 622.42 | -0.1% | -3.9% | 2.3% |
| ML Sterling Corporate Bonds | 392.45 | -0.1% | -2.1% | 5.7% |
| ML Global High Yield Bonds | 376.33 | 0.3% | -0.3% | 9.7% |
| Commodities (US$) | ||||
| Brent Crude Oil | 62.59 | -0.3% | -5.8% | 14.5% |
| Gold | 1,324.80 | 0.9% | 1.4% | 11.8% |
| UK Sectors | ||||
| Basic Materials | 6,098.06 | 2.0% | -3.5% | 25.0% |
| Consumer Goods and Services | 20,164.99 | 1.0% | -9.8% | 13.6% |
| Financials | 5,191.30 | 0.8% | -4.1% | 13.3% |
| Health Care | 8,898.45 | 1.5% | -6.5% | -3.7% |
| Industrials | 3,946.42 | 1.1% | -6.5% | 9.0% |
| Oil & Gas | 8,318.40 | 2.0% | -8.2% | 6.0% |
| Technology | 1,990.07 | 1.0% | -13.6% | 23.5% |
| Telecommunications | 2,907.39 | 0.2% | -14.1% | 0.1% |
| Utilities | 6,334.29 | -0.4% | -13.6% | -14.8% |
| Currencies | ||||
| $ per £ | 1.38 | 0.1% | 2.3% | 9.5% |
| € per £ | 1.13 | 0.3% | 0.2% | -4.0% |
| ¥ per £ | 150.49 | 0.2% | -1.1% | 5.3% |
| Indicators | ||||
| VIX Index (Volatility) | 25.61 | -11.9% | 132.0% | -21.4% |
| Baltic Dry Index | 1,123.00 | -0.2% | -17.8% | 42.1% |
| UK Rates | ||||
| BoE Base Rate | 0.50% | |||
| LIBOR (3 months) | 0.54% | |||
| Consumer Price Index | 3.00% | |||
| Retail Price Index | 4.10% |
| Yields / Ratios | ||||
| FTSE 100 Adj P/E | 19.05 | |||
| FTSE All Share Adj P/E | 18.59 | |||
| FTSE All Share Yld | 4.08% | |||
| 15yr Gilt Yield | 1.83% | |||
| 10yr Gilt Yield | 1.60% | |||
| 10yr US Tres Yield | 2.86% |