Daily News – 23 December 2016
Investment Market Update
Asia
Asian stocks fell on the last trading day before Christmas as Chinese equities extended their losses amid concerns over rising borrowing costs in the world’s two biggest economies.
US
US stocks fell as the dollar pushed higher and Treasuries extended declines following the release of economic data that met or exceeded expectations.
UK
UK stocks rose, with the FTSE 100 managing a gain towards the end of the session, despite falling prices for copper, zinc and nickel. The price of copper hit a one-month low after a report showed that Chinese metal imports slowed sharply in November.
Headlines
The US economy grew even faster than thought in the July-to-September period, latest official figures indicate. The world’s largest economy grew at an annualised rate of 3.5% in the quarter, up from an earlier estimate of 3.2%, the Commerce Department said.
Italy’s cabinet has approved a state-bailout for the country’s third-largest bank, Monte dei Paschi di Siena. Prime Minister Paolo Gentiloni said his government had authorised a €20bn fund to support Italy’s embattled banking sector. The announcement came after Monte dei Paschi had failed to raise €5bn from private investors.
Market data
| Price | 1d | YTD | 2015 | |
| UK (£) | ||||
| FTSE 100 | 7,063.68 | 0.3% | 13.2% | -4.9% |
| FTSE 250 | 17,891.62 | 0.8% | 2.6% | 8.4% |
| FTSE All Share | 3,831.31 | 0.4% | 11.2% | -2.5% |
| FTSE Small Cap | 5,105.23 | 0.4% | 10.2% | 6.2% |
| Europe (€) | ||||
| Euro Stoxx 600 | 359.82 | -0.2% | -1.6% | 6.8% |
| DAX 30 | 11,456.10 | -0.1% | 6.6% | 9.6% |
| CAC 40 | 4,834.63 | 0.0% | 4.3% | 8.5% |
| US (US$) | ||||
| S&P 500 | 2,260.96 | -0.2% | 10.6% | -0.7% |
| Dow Jones Ind | 19,918.88 | -0.1% | 14.3% | -2.2% |
| NASDAQ | 5,447.42 | -0.4% | 8.8% | 5.7% |
| Asia | ||||
| Hang Seng | 21,533.32 | -0.5% | -1.7% | -7.2% |
| Nikkei 225 | 19,427.67 | 0.0% | 2.1% | 9.1% |
| Australia 200 | 5,627.95 | -0.3% | 6.3% | -1.8% |
| MSCI AC Asia Pacific | 134.78 | -0.4% | 2.1% | -4.3% |
| World (US$) | ||||
| MSCI World (Developed) | 1,757.83 | -0.1% | 5.7% | -2.7% |
| MSCI AC World (Dev & Em) | 422.25 | -0.2% | 5.7% | -4.3% |
| MSCI Emerging Markets | 842.51 | -1.0% | 6.1% | -17.0% |
| MSCI AC World Value | 194.68 | -0.2% | 9.7% | -8.7% |
| MSCI AC World Growth | 215.71 | -0.3% | 1.9% | 0.2% |
| Fixed Income | ||||
| FTSE Gilts All Stocks | 3,477.81 | 0.2% | 8.6% | 0.6% |
| FTSE Index Linked All Stocks | 620.29 | 0.4% | 20.2% | -1.8% |
| ML Sterling Corporate Bonds | 376.89 | 0.1% | 10.6% | 0.5% |
| ML Global High Yield Bonds | 340.89 | 0.1% | 14.2% | -4.2% |
| Commodities (US$) | ||||
| Brent Crude Oil | 55.05 | 1.1% | 21.0% | -39.3% |
| Gold | 1,129.18 | -0.3% | 6.3% | -10.6% |
| UK Sectors | ||||
| Basic Materials | 4,914.08 | -0.2% | 79.2% | -42.1% |
| Consumer Goods and Services | 19,465.26 | 0.3% | 6.4% | 13.1% |
| Financials | 4,754.71 | 0.2% | 4.0% | -1.5% |
| Health Care | 9,698.29 | 0.7% | 2.2% | 2.2% |
| Industrials | 3,831.31 | 0.4% | 11.2% | -2.5% |
| Oil & Gas | 8,435.37 | 0.7% | 48.1% | -20.7% |
| Technology | 1,978.18 | 2.1% | 24.3% | 4.6% |
| Telecommunications | 3,390.80 | 0.1% | -15.2% | 7.2% |
| Utilities | 8,475.81 | 0.1% | 0.9% | -4.7% |
| Currencies | ||||
| $ per £ | 1.23 | -0.1% | -16.6% | -4.0% |
| € per £ | 1.18 | -0.1% | -13.2% | -6.4% |
| ¥ per £ | 144.22 | -0.3% | -18.6% | 4.3% |
| Indicators | ||||
| VIX Index (Volatility) | 11.43 | 1.4% | -37.2% | 9.5% |
| Baltic Dry Index | 928.00 | 0.2% | 94.1% | -38.9% |
| UK Rates | ||||
| BoE Base Rate | 0.25% | |||
| LIBOR (3 months) | 0.00% | |||
| Consumer Price Index | 1.20% | |||
| Retail Price Index | 2.20% |
| Yields / Ratios | ||||
| FTSE 100 Adj P/E | 27.18 | |||
| FTSE All Share Adj P/E | 24.34 | |||
| FTSE All Share Yld | 3.77% | |||
| 15yr Gilt Yield | 1.75% | |||
| 10yr Gilt Yield | 1.37% | |||
| 10yr US Tres Yield | 2.55% |