Daily News – 13 March 2018
Investment Market Update
Asia
Asian equity traders adopted a cautious tone following a dip in US stocks, with focus turning to a US inflation report for clues on the pace of Federal Reserve policy tightening. The dollar gained against major peers and Treasury yields held declines.
US
US stocks fell losing early momentum after starting the day on a positive note. Caterpillar shares fell 2.4% as the market assessed the impact of tariffs on steel and aluminum imports on some of the US’s largest companies.
UK
UK stocks closed lower with shares in takeaway app company Just Eat falling 4.8% after it was downgraded by Deutsche Bank. Just Eat published a new plan to expand its delivery operations last month but the analysts said it has “substantial implementation risks, additional costs and an uncertain return”.
Headlines
President Donald Trump issued an executive order Monday blocking Broadcom Ltd. from pursuing its hostile takeover of Qualcomm Inc., scuttling a $117 billion deal that had been scrutinised by a secretive panel over the tie-up’s threat to US national security.
The 22 billion-euro deal that’s shaking up the world of German utilities also has a very British dimension. EON SE’s acquisition of Innogy SE will combine the two UK businesses they own, shrinking the country’s Big Six utilities to five at a time when both the government and main opposition party are pressing for lower bills. It also emphasises Britain’s dependence on foreign companies for power and natural gas.
Market data
| Price | 1d | YTD | 2017 | |
| UK (£) | ||||
| FTSE 100 | 7,214.76 | -0.1% | -6.2% | 7.6% |
| FTSE 250 | 20,117.53 | 0.2% | -2.9% | 14.7% |
| FTSE All Share | 3,991.04 | -0.1% | -5.5% | 9.0% |
| FTSE Small Cap | 5,806.57 | 0.5% | -1.8% | 14.9% |
| Europe (€) | ||||
| Euro Stoxx 600 | 379.20 | 0.3% | -2.6% | 7.7% |
| DAX 30 | 12,418.39 | 0.6% | -3.9% | 12.5% |
| CAC 40 | 5,276.71 | 0.0% | -0.7% | 9.3% |
| US (US$) | ||||
| S&P 500 | 2,783.02 | -0.1% | 4.1% | 19.4% |
| Dow Jones Ind | 25,178.61 | -0.6% | 1.9% | 25.1% |
| NASDAQ | 7,588.33 | 0.4% | 9.9% | 28.2% |
| Asia | ||||
| Hang Seng | 31,483.71 | -0.4% | 5.2% | 38.5% |
| Nikkei 225 | 21,968.10 | 0.7% | -3.5% | 19.1% |
| Australia 200 | 5,974.71 | -0.4% | -1.5% | 7.0% |
| MSCI AC Asia Pacific | 178.59 | 1.7% | 2.7% | 28.7% |
| World (US$) | ||||
| MSCI World (Developed) | 2,154.26 | 0.2% | 2.4% | 20.1% |
| MSCI AC World (Dev & Em) | 527.30 | 0.4% | 2.8% | 21.6% |
| MSCI Emerging Markets | 1,222.20 | 1.2% | 5.5% | 34.2% |
| MSCI AC World Value | 224.85 | 0.3% | 0.4% | 15.2% |
| MSCI AC World Growth | 291.06 | 0.4% | 5.2% | 28.3% |
| Fixed Income | ||||
| FTSE Gilts All Stocks | 3,519.31 | 0.0% | -1.9% | 3.0% |
| FTSE Index Linked All Stocks | 625.40 | 0.1% | -3.5% | 2.3% |
| ML Sterling Corporate Bonds | 393.01 | 0.0% | -1.9% | 5.7% |
| ML Global High Yield Bonds | 378.38 | 0.1% | 0.3% | 9.7% |
| Commodities (US$) | ||||
| Brent Crude Oil | 64.95 | -0.8% | -1.7% | 14.5% |
| Gold | 1,320.58 | -0.1% | 1.1% | 11.8% |
| UK Sectors | ||||
| Basic Materials | 6,110.09 | -0.1% | -3.3% | 25.0% |
| Consumer Goods and Services | 19,756.35 | -0.4% | -11.6% | 13.6% |
| Financials | 5,263.23 | 0.3% | -2.8% | 13.3% |
| Health Care | 9,057.90 | 0.1% | -4.8% | -3.7% |
| Industrials | 3,991.04 | -0.1% | -5.5% | 9.0% |
| Oil & Gas | 8,252.39 | -0.2% | -8.9% | 6.0% |
| Technology | 2,126.87 | 0.3% | -7.6% | 23.5% |
| Telecommunications | 2,969.39 | -0.5% | -12.2% | 0.1% |
| Utilities | 6,662.07 | -0.6% | -9.2% | -14.8% |
| Currencies | ||||
| $ per £ | 1.39 | -0.4% | 2.5% | 9.5% |
| € per £ | 1.13 | -0.2% | -0.1% | -4.0% |
| ¥ per £ | 147.92 | -0.1% | -2.8% | 5.3% |
| Indicators | ||||
| VIX Index (Volatility) | 15.78 | 7.8% | 42.9% | -21.4% |
| Baltic Dry Index | 1,201.00 | 0.0% | -12.1% | 42.1% |