Daily News – 14 February 2018
Investment Market Update
Asia
Asian stocks fluctuated as investors prepared for a report on US inflation due later today that may contain clues on where US monetary policy is headed.
US
US stocks gained for a third day, recovering from the biggest correction in two years. Investors are waiting for today’s January inflation data, which may shed light on the pace of the Federal Reserve’s tighter monetary policy.
UK
UK stocks closed lower, as strong gains by miners failed to offset falls in utility stocks on a report suggesting a planned energy cap should be introduced urgently.
Headlines
UK consumer price inflation remained at 3% in January, the same level as in December despite a fall in food prices. Last week, the Bank of England indicated interest rates might rise sooner than expected when it said it wanted to get inflation closer to 2% within two years rather than three.
Japan’s economic growth slowed in the last three months of 2017 and missed expectations, preliminary official figures show. The world’s third-largest economy expanded at an annualised rate of 0.5% in the quarter, against analyst forecasts of 0.9%.
Market data
| Price | 1d | YTD | 2017 | |
| UK (£) | ||||
| FTSE 100 | 7,168.01 | -0.1% | -6.8% | 7.6% |
| FTSE 250 | 19,320.08 | -0.3% | -6.8% | 14.7% |
| FTSE All Share | 3,939.71 | -0.2% | -6.7% | 9.0% |
| FTSE Small Cap | 5,644.14 | -0.5% | -4.5% | 14.9% |
| Europe (€) | ||||
| Euro Stoxx 600 | 370.58 | -0.6% | -4.8% | 7.7% |
| DAX 30 | 12,196.50 | -0.7% | -5.6% | 12.5% |
| CAC 40 | 5,109.24 | -0.6% | -3.8% | 9.3% |
| US (US$) | ||||
| S&P 500 | 2,662.94 | 0.3% | -0.4% | 19.4% |
| Dow Jones Ind | 24,640.45 | 0.2% | -0.3% | 25.1% |
| NASDAQ | 7,013.51 | 0.5% | 1.6% | 28.2% |
| Asia | ||||
| Hang Seng | 30,354.10 | 1.7% | 1.5% | 38.5% |
| Nikkei 225 | 21,154.17 | -0.4% | -7.1% | 19.1% |
| Australia 200 | 5,841.24 | -0.3% | -3.7% | 7.0% |
| MSCI AC Asia Pacific | 172.45 | 0.7% | -0.8% | 28.7% |
| World (US$) | ||||
| MSCI World (Developed) | 2,080.68 | 0.2% | -1.1% | 20.1% |
| MSCI AC World (Dev & Em) | 508.45 | 0.3% | -0.9% | 21.6% |
| MSCI Emerging Markets | 1,164.49 | 1.0% | 0.5% | 34.2% |
| MSCI AC World Value | 219.95 | 0.2% | -1.8% | 15.2% |
| MSCI AC World Growth | 276.84 | 0.4% | 0.0% | 28.3% |
| Fixed Income | ||||
| FTSE Gilts All Stocks | 3,490.05 | -0.2% | -2.8% | 3.0% |
| FTSE Index Linked All Stocks | 619.71 | -0.4% | -4.3% | 2.3% |
| ML Sterling Corporate Bonds | 390.96 | -0.4% | -2.5% | 5.7% |
| ML Global High Yield Bonds | 375.90 | -0.1% | -0.4% | 9.7% |
| Commodities (US$) | ||||
| Brent Crude Oil | 62.72 | 0.2% | -5.6% | 14.5% |
| Gold | 1,327.46 | 0.2% | 1.6% | 11.8% |
| UK Sectors | ||||
| Basic Materials | 6,184.03 | 1.4% | -2.1% | 25.0% |
| Consumer Goods and Services | 19,976.68 | -0.9% | -10.7% | 13.6% |
| Financials | 5,190.58 | 0.0% | -4.1% | 13.3% |
| Health Care | 8,864.12 | -0.4% | -6.8% | -3.7% |
| Industrials | 3,939.71 | -0.2% | -6.7% | 9.0% |
| Oil & Gas | 8,300.65 | -0.2% | -8.4% | 6.0% |
| Technology | 1,980.92 | -0.5% | -14.0% | 23.5% |
| Telecommunications | 2,871.95 | -1.2% | -15.1% | 0.1% |
| Utilities | 6,253.96 | -1.3% | -14.7% | -14.8% |
| Currencies | ||||
| $ per £ | 1.38 | -0.3% | 2.2% | 9.5% |
| € per £ | 1.13 | 0.3% | 0.0% | -4.0% |
| ¥ per £ | 150.18 | 0.6% | -1.3% | 5.3% |
| Indicators | ||||
| VIX Index (Volatility) | 24.97 | -2.5% | 126.2% | -21.4% |
| Baltic Dry Index | 1,114.00 | -0.8% | -18.4% | 42.1% |
| UK Rates | ||||
| BoE Base Rate | 0.50% | |||
| LIBOR (3 months) | 0.54% | |||
| Consumer Price Index | 3.00% | |||
| Retail Price Index | 4.00% |
| Yields / Ratios | ||||
| FTSE 100 Adj P/E | 19.03 | |||
| FTSE All Share Adj P/E | 18.57 | |||
| FTSE All Share Yld | 4.08% | |||
| 15yr Gilt Yield | 1.85% | |||
| 10yr Gilt Yield | 1.62% | |||
| 10yr US Tres Yield | 2.83% |