Daily News – 22 March 2018
Investment Market Update
Asia
Asian markets were mixed on Thursday after the Federal Reserve increased interest rates by 25 basis points, as had been widely expected.
US
US stocks finished lower on Wednesday after the Federal Reserve increased interest rates and pointed to a stronger US growth outlook following tax cuts. US stocks initially rallied on the announcement, which suggested no plans to immediately accelerate the pace of tightening monetary policy.
UK
UK stocks fell on Wednesday as Kingfisher and Moss Bros piled more bad news on the UK retail industry. Share declines accelerated after data showed British workers’ pay had risen at the fastest pace in nearly two and a half years pushing up the value of sterling and hitting shares in big multinationals and exporters.
Headlines
Facebook founder Mark Zuckerberg has admitted that the social network “made mistakes” that led to millions of Facebook users having their data exploited by a political consultancy. Cambridge Analytica is accused of improperly using the data on behalf of political clients. In a statement, Mr Zuckerberg said a “breach of trust” had occurred.
The Trump administration plans to announce sanctions against China on Thursday after determining that the country is encouraging the theft and transfer of intellectual property from US businesses. The White House said the actions come after years of talks about the issue that failed to produce change. The actions are expected to include tariffs, as well as other measures.
Market data
| Price | 1d | YTD | 2017 | |
| UK (£) | ||||
| FTSE 100 | 7,038.97 | -0.3% | -8.4% | 7.6% |
| FTSE 250 | 19,668.04 | -0.3% | -5.1% | 14.7% |
| FTSE All Share | 3,895.31 | -0.3% | -7.7% | 9.0% |
| FTSE Small Cap | 5,670.22 | -0.5% | -4.1% | 14.9% |
| Europe (€) | ||||
| Euro Stoxx 600 | 374.96 | -0.2% | -3.7% | 7.7% |
| DAX 30 | 12,309.15 | 0.0% | -4.7% | 12.5% |
| CAC 40 | 5,239.74 | -0.2% | -1.4% | 9.3% |
| US (US$) | ||||
| S&P 500 | 2,711.93 | -0.2% | 1.4% | 19.4% |
| Dow Jones Ind | 24,682.31 | -0.2% | -0.1% | 25.1% |
| NASDAQ | 7,345.29 | -0.3% | 6.4% | 28.2% |
| Asia | ||||
| Hang Seng | 31,200.48 | -0.7% | 4.3% | 38.5% |
| Nikkei 225 | 21,591.99 | 1.0% | -5.2% | 19.1% |
| Australia 200 | 5,937.15 | -0.2% | -2.1% | 7.0% |
| MSCI AC Asia Pacific | 176.52 | -0.1% | 1.6% | 28.7% |
| World (US$) | ||||
| MSCI World (Developed) | 2,109.18 | -0.1% | 0.3% | 20.1% |
| MSCI AC World (Dev & Em) | 516.95 | -0.1% | 0.8% | 21.6% |
| MSCI Emerging Markets | 1,209.62 | 0.0% | 4.4% | 34.2% |
| MSCI AC World Value | 220.41 | 0.1% | -1.6% | 15.2% |
| MSCI AC World Growth | 285.38 | -0.2% | 3.1% | 28.3% |
| Fixed Income | ||||
| FTSE Gilts All Stocks | 3,551.40 | -0.3% | -1.0% | 3.0% |
| FTSE Index Linked All Stocks | 634.24 | -0.3% | -2.1% | 2.3% |
| ML Sterling Corporate Bonds | 392.00 | -0.3% | -2.2% | 5.7% |
| ML Global High Yield Bonds | 376.85 | 0.0% | -0.1% | 9.7% |
| Commodities (US$) | ||||
| Brent Crude Oil | 69.47 | 3.0% | 5.1% | 14.5% |
| Gold | 1,323.81 | 0.9% | 1.3% | 11.8% |
| UK Sectors | ||||
| Basic Materials | 6,100.83 | 1.3% | -3.4% | 25.0% |
| Consumer Goods and Services | 18,768.68 | -1.4% | -16.1% | 13.6% |
| Financials | 5,212.12 | -0.6% | -3.7% | 13.3% |
| Health Care | 8,930.02 | -0.2% | -6.1% | -3.7% |
| Industrials | 3,895.31 | -0.3% | -7.7% | 9.0% |
| Oil & Gas | 8,158.67 | 1.4% | -9.9% | 6.0% |
| Technology | 1,692.34 | -0.6% | -26.5% | 23.5% |
| Telecommunications | 2,813.48 | -0.2% | -16.8% | 0.1% |
| Utilities | 6,445.94 | 0.1% | -12.1% | -14.8% |
| Currencies | ||||
| $ per £ | 1.40 | -0.5% | 3.7% | 9.5% |
| € per £ | 1.14 | -0.3% | 1.5% | -4.0% |
| ¥ per £ | 149.04 | -0.3% | -2.1% | 5.3% |
| Indicators | ||||
| VIX Index (Volatility) | 17.86 | -1.9% | 61.8% | -21.4% |
| Baltic Dry Index | 1,122.00 | -1.2% | -17.9% | 42.1% |