Daily News – 4 May 2018
Investment Market Update
Asia
Asian stocks declined as investors assessed the implications of ongoing trade talks between the US and China. The dollar remained under pressure ahead of the monthly US jobs report.
US
US stocks closed lower as unsteady trade was underpinned by quarterly results that failed to impress Wall Street, uncertainty over the Federal Reserve’s policy planand worries over a full-blown US-China trade war.
UK
UK stocks fell as a decline in Smith & Nephew’s shares and weakness across financials and health stocks dragged the FTSE 100 off a three-month high.
Headlines
Banking giant HSBC saw pre-tax profits fall 4% in the first three months of 2018, as higher costs more than eroded increased revenue. The lender reported making $4.8bn compared with the $5bn posted in the the same period a year earlier – missing analysts’ estimates. But shareholders will be cheered by plans for a $2bn share buyback. The results are the first announced since John Flint took over as chief executive from Stuart Gulliver.
Former Volkswagen chief executive Martin Winterkorn has been charged by US prosecutors in Detroit over the diesel emissions scandal. He has been accused of conspiring to mislead regulators about the German car maker’s efforts to cheat the emissions tests of its diesel-fuelled vehicles. Charges filed in March were revealed on Thursday, adding Mr Winterkorn to the list of accused former VW executives. VW said it was cooperating with US probes and declined to comment further.
Market data
| Price | 1d | YTD | 2017 | |
| UK (£) | ||||
| FTSE 100 | 7,502.69 | -0.5% | -2.4% | 7.6% |
| FTSE 250 | 20,365.87 | -0.7% | -1.7% | 14.7% |
| FTSE All Share | 4,128.12 | -0.5% | -2.2% | 9.0% |
| FTSE Small Cap | 5,889.48 | -0.2% | -0.4% | 14.9% |
| Europe (€) | ||||
| Euro Stoxx 600 | 384.62 | -0.7% | -1.2% | 7.7% |
| DAX 30 | 12,690.15 | -0.9% | -1.8% | 12.5% |
| CAC 40 | 5,501.66 | -0.5% | 3.6% | 9.3% |
| US (US$) | ||||
| S&P 500 | 2,629.73 | -0.2% | -1.6% | 19.4% |
| Dow Jones Ind | 23,930.15 | 0.0% | -3.2% | 25.1% |
| NASDAQ | 7,088.15 | -0.2% | 2.7% | 28.2% |
| Asia | ||||
| Hang Seng | 30,076.75 | -0.8% | 0.5% | 38.5% |
| Nikkei 225 | 22,472.78 | 0.0% | -1.3% | 19.1% |
| Australia 200 | 6,062.90 | -0.6% | 0.0% | 7.0% |
| MSCI AC Asia Pacific | 173.08 | 0.0% | -0.4% | 28.7% |
| World (US$) | ||||
| MSCI World (Developed) | 2,071.37 | -0.3% | -1.5% | 20.1% |
| MSCI AC World (Dev & Em) | 505.04 | -0.4% | -1.6% | 21.6% |
| MSCI Emerging Markets | 1,137.85 | -1.2% | -1.8% | 34.2% |
| MSCI AC World Value | 215.81 | -0.5% | -3.7% | 15.2% |
| MSCI AC World Growth | 278.22 | -0.2% | 0.5% | 28.3% |
| Fixed Income | ||||
| FTSE Gilts All Stocks | 3,568.57 | 0.6% | -0.6% | 3.0% |
| FTSE Index Linked All Stocks | 633.65 | 0.9% | -2.2% | 2.3% |
| ML Sterling Corporate Bonds | 395.67 | 0.4% | -1.3% | 5.7% |
| ML Global High Yield Bonds | 375.06 | -0.1% | -0.6% | 9.7% |
| Commodities (US$) | ||||
| Brent Crude Oil | 73.62 | 0.4% | 12.4% | 14.5% |
| Gold | 1,312.69 | 0.6% | 0.5% | 11.8% |
| UK Sectors | ||||
| Basic Materials | 6,278.43 | -0.4% | -0.6% | 25.0% |
| Consumer Goods and Services | 19,675.85 | -0.4% | -12.0% | 13.6% |
| Financials | 5,297.90 | -0.7% | -2.1% | 13.3% |
| Health Care | 9,920.71 | -0.9% | 4.3% | -3.7% |
| Industrials | 4,128.12 | -0.5% | -2.2% | 9.0% |
| Oil & Gas | 9,389.56 | 0.0% | 3.6% | 6.0% |
| Technology | 1,812.96 | -0.6% | -21.2% | 23.5% |
| Telecommunications | 2,972.81 | -2.4% | -12.1% | 0.1% |
| Utilities | 7,297.16 | -0.1% | -0.5% | -14.8% |
| Currencies | ||||
| $ per £ | 1.36 | 0.1% | 0.7% | 9.5% |
| € per £ | 1.14 | 0.3% | 0.9% | -4.0% |
| ¥ per £ | 149.45 | 0.8% | -1.8% | 5.3% |
| Indicators | ||||
| VIX Index (Volatility) | 15.90 | -0.4% | 44.0% | -21.4% |
| Baltic Dry Index | 1,376.00 | 2.2% | 0.7% | 42.1% |