Daily News – 23 February 2018
Investment Market Update
Asia
Asian stocks closed out a lackluster week on a positive note as investors continue to debate the outlook for central bank policy and the impact of higher bond yields.
US
US stocks closed higher after St Louis Fed President James Bullard said policymakers would need to be careful not to raise interest rates too quickly.
UK
UK stocks fell hit by disappointing results, big stocks going ex-dividend and concerns over rising bond yields. Shares in British American Tobacco were the biggest fallers, down around 4.5% after the cigarette maker reported weaker-than-expected sales growth for 2017. Elsewhere Moneysupermarket fell around 18% after its guidance disappointed investors, with the firm pointing to costs around a new strategy.
Headlines
Prime Minister Theresa May gathered her top ministers for an eight-hour session to get them to back her Brexit strategy, as the European Commission preempted the outcome by saying that what it’s heard of her plan won’t work.
The euro-area economy has been put on notice that there’s no guarantee the good times last forever. Two reports this week took the shine off the outlook after a string of positive data that culminated in 2017 recording its best growth in a decade. Business confidence in Germany fell the most in more than five years, while manufacturing and services activity in the euro area weakened more than economists forecast.
Market data
| Price | 1d | YTD | 2017 | |
| UK (£) | ||||
| FTSE 100 | 7,252.39 | -0.4% | -5.7% | 7.6% |
| FTSE 250 | 19,736.06 | -0.3% | -4.8% | 14.7% |
| FTSE All Share | 3,992.40 | -0.4% | -5.4% | 9.0% |
| FTSE Small Cap | 5,710.71 | -0.3% | -3.4% | 14.9% |
| Europe (€) | ||||
| Euro Stoxx 600 | 380.34 | -0.2% | -2.3% | 7.7% |
| DAX 30 | 12,461.91 | -0.1% | -3.5% | 12.5% |
| CAC 40 | 5,309.23 | 0.1% | -0.1% | 9.3% |
| US (US$) | ||||
| S&P 500 | 2,703.96 | 0.1% | 1.1% | 19.4% |
| Dow Jones Ind | 24,962.48 | 0.7% | 1.0% | 25.1% |
| NASDAQ | 7,210.09 | -0.1% | 4.4% | 28.2% |
| Asia | ||||
| Hang Seng | 31,326.16 | 1.2% | 4.7% | 38.5% |
| Nikkei 225 | 21,892.78 | 0.7% | -3.8% | 19.1% |
| Australia 200 | 5,999.79 | 0.8% | -1.1% | 7.0% |
| MSCI AC Asia Pacific | 176.06 | -0.6% | 1.3% | 28.7% |
| World (US$) | ||||
| MSCI World (Developed) | 2,117.17 | -0.1% | 0.7% | 20.1% |
| MSCI AC World (Dev & Em) | 518.20 | -0.1% | 1.0% | 21.6% |
| MSCI Emerging Markets | 1,200.90 | -0.7% | 3.7% | 34.2% |
| MSCI AC World Value | 222.55 | -0.2% | -0.7% | 15.2% |
| MSCI AC World Growth | 284.12 | -0.1% | 2.6% | 28.3% |
| Fixed Income | ||||
| FTSE Gilts All Stocks | 3,512.59 | 0.0% | -2.1% | 3.0% |
| FTSE Index Linked All Stocks | 628.52 | -0.3% | -3.0% | 2.3% |
| ML Sterling Corporate Bonds | 392.85 | -0.1% | -2.0% | 5.7% |
| ML Global High Yield Bonds | 377.63 | -0.1% | 0.1% | 9.7% |
| Commodities (US$) | ||||
| Brent Crude Oil | 66.39 | 1.5% | -0.1% | 14.5% |
| Gold | 1,330.11 | 0.0% | 1.8% | 11.8% |
| UK Sectors | ||||
| Basic Materials | 6,409.96 | 0.1% | 1.5% | 25.0% |
| Consumer Goods and Services | 19,827.15 | -1.1% | -11.3% | 13.6% |
| Financials | 5,290.69 | -0.4% | -2.3% | 13.3% |
| Health Care | 8,850.34 | -0.5% | -7.0% | -3.7% |
| Industrials | 3,992.40 | -0.4% | -5.4% | 9.0% |
| Oil & Gas | 8,252.36 | 0.3% | -8.9% | 6.0% |
| Technology | 2,072.77 | 0.0% | -10.0% | 23.5% |
| Telecommunications | 2,908.78 | -0.3% | -14.0% | 0.1% |
| Utilities | 6,463.32 | 1.6% | -11.9% | -14.8% |
| Currencies | ||||
| $ per £ | 1.40 | 0.1% | 3.4% | 9.5% |
| € per £ | 1.13 | 0.1% | 0.6% | -4.0% |
| ¥ per £ | 150.36 | 0.8% | -1.2% | 5.3% |
| Indicators | ||||
| VIX Index (Volatility) | 18.72 | -6.5% | 69.6% | -21.4% |
| Baltic Dry Index | 1,167.00 | 1.8% | -14.6% | 42.1% |