Daily News – 16 February 2018
Investment Market Update
Asia
Asian equities ended mixed on the last day of the week, but trading in the region was subdued with many markets shut for the Lunar New Year holiday. China, Hong Kong, Taiwan, South Korea, Malaysia and Vietnam were all closed. Japans benchmark the Nikkei rallied 1.19%, notching a weekly gain of 1.58%.
US
US equities continued to rise on Thursday as stocks closed out their fifth day of gains, with the S&P 500 now just 4.9% away from its all-time high. On the US data front, jobless claims increased by 7,000 to a seasonally adjusted 230,000, rebounding from a near 45-year low.
UK
UK stocks were marginally up as they held onto gains from Wednesday. Standard Life Aberdeen was the biggest faller in the FTSE 100 after Lloyds Banking Group and Scottish Widows called time on a large asset management contract with the recently merged firm.
Headlines
The extent at which young people are locked out of the British housing market has been revealed in new figures from economists. The biggest decline in home ownership in the last 20 years has been among middle-income 25 to 34-year-olds, the Institute for Fiscal Studies said. In 1995-96, 65% of this group owned a home, but just 27% do in 2015-16.
French car giant Renault has asked Carlos Ghosn to stay on as chief executive for a further four years. There had been some speculation that he would relinquish his role as head of the firm – a position he has held since 2005. Shareholders will vote on Mr Ghosn’s re-appointment at a meeting in June.
Market data
| Price | 1d | YTD | 2017 | |
| UK (£) | ||||
| FTSE 100 | 7,234.81 | 0.3% | -5.9% | 7.6% |
| FTSE 250 | 19,574.76 | 0.6% | -5.6% | 14.7% |
| FTSE All Share | 3,978.90 | 0.4% | -5.8% | 9.0% |
| FTSE Small Cap | 5,695.84 | 0.4% | -3.7% | 14.9% |
| Europe (€) | ||||
| Euro Stoxx 600 | 376.51 | 0.5% | -3.3% | 7.7% |
| DAX 30 | 12,346.17 | 0.1% | -4.4% | 12.5% |
| CAC 40 | 5,222.52 | 1.1% | -1.7% | 9.3% |
| US (US$) | ||||
| S&P 500 | 2,731.20 | 1.2% | 2.2% | 19.4% |
| Dow Jones Ind | 25,200.37 | 1.2% | 1.9% | 25.1% |
| NASDAQ | 7,256.43 | 1.6% | 5.1% | 28.2% |
| Asia | ||||
| Hang Seng | 31,115.43 | 0.0% | 4.0% | 38.5% |
| Nikkei 225 | 21,720.25 | 1.2% | -4.6% | 19.1% |
| Australia 200 | 5,904.04 | -0.1% | -2.7% | 7.0% |
| MSCI AC Asia Pacific | 175.95 | 1.3% | 1.2% | 28.7% |
| World (US$) | ||||
| MSCI World (Developed) | 2,130.94 | 1.2% | 1.3% | 20.1% |
| MSCI AC World (Dev & Em) | 521.25 | 1.2% | 1.6% | 21.6% |
| MSCI Emerging Markets | 1,202.62 | 1.5% | 3.8% | 34.2% |
| MSCI AC World Value | 224.53 | 1.0% | 0.2% | 15.2% |
| MSCI AC World Growth | 284.98 | 1.4% | 3.0% | 28.3% |
| Fixed Income | ||||
| FTSE Gilts All Stocks | 3,472.83 | -0.3% | -3.2% | 3.0% |
| FTSE Index Linked All Stocks | 617.47 | 0.0% | -4.7% | 2.3% |
| ML Sterling Corporate Bonds | 389.88 | -0.1% | -2.7% | 5.7% |
| ML Global High Yield Bonds | 377.89 | 0.5% | 0.1% | 9.7% |
| Commodities (US$) | ||||
| Brent Crude Oil | 64.33 | 0.0% | -3.2% | 14.5% |
| Gold | 1,351.38 | 0.2% | 3.5% | 11.8% |
| UK Sectors | ||||
| Basic Materials | 6,426.47 | 1.9% | 1.7% | 25.0% |
| Consumer Goods and Services | 20,114.59 | 0.1% | -10.0% | 13.6% |
| Financials | 5,250.33 | 0.3% | -3.0% | 13.3% |
| Health Care | 8,848.98 | -0.2% | -7.0% | -3.7% |
| Industrials | 3,978.90 | 0.4% | -5.8% | 9.0% |
| Oil & Gas | 8,199.13 | -1.3% | -9.5% | 6.0% |
| Technology | 2,037.06 | 1.5% | -11.5% | 23.5% |
| Telecommunications | 2,865.06 | 0.0% | -15.3% | 0.1% |
| Utilities | 6,264.64 | -0.6% | -14.6% | -14.8% |
| Currencies | ||||
| $ per £ | 1.40 | -0.5% | 3.4% | 9.5% |
| € per £ | 1.13 | -0.1% | 0.0% | -4.0% |
| ¥ per £ | 149.63 | -0.1% | -1.7% | 5.3% |
| Indicators | ||||
| VIX Index (Volatility) | 19.13 | -0.7% | 73.3% | -21.4% |
| Baltic Dry Index | 1,089.00 | -0.5% | -20.3% | 42.1% |