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Investment Market Update

06 February 2018

World markets

FTSE 100 -1.5% 7334.98
FTSE 250 -1.4% 19690.49
Euro Stoxx 600 -1.6% 382.00
S&P 500 -4.1% 2648.94
Nikkei -4.7% 21610.24
Hang Seng (HK$) -4.4% 30813.17


Asian stocks fell for a second day as investors moved to safer havens such as the Japanese yen and US Treasuries. The Japanese market touched a 10% fall since January, which is enough to be technically called a correction.


US stocks saw their biggest fall since 2011 amid concern over interest rates rising higher and faster than the market originally expected.


UK stocks fell as traders priced in tighter monetary policy around the world.


  • US stocks saw the biggest one-day fall in six years on Monday. The Dow Jones Industrial Average fell nearly 1,600 points for its biggest intraday drop in history in points terms, or more than 6%, before ending down 4.6% for it’s biggest one day fall since Aug. 2011. Only last month the Dow and S&P500 index had their best monthly gains in two years with stocks reaching record levels on 26 January, supported by the benefit of cut in US corporate taxes in December, rising earnings, and healthy global economic growth. But with the Federal Reserve seen likely to raise short-term interest rates again at least three times in 2018, bond yields have been rising, and last Friday’s healthy US jobs market report sparked fears of rising inflation, leading to Monday’s sharp bout of profit taking.

Market data

UK (£)
FTSE 1007,334.98-1.50%-4.60%7.60%
FTSE 25019,690.49-1.40%-5.00%14.70%
FTSE All Share4,027.44-1.50%-4.60%9.00%
FTSE Small Cap5,722.94-1.70%-3.20%14.90%
St. James's Place1,173.00-1.30%-4.30%20.90%
Europe (€)
Euro Stoxx 600382-1.60%-1.80%7.70%
DAX 3012,687.49-0.80%-1.80%12.50%
CAC 405,285.83-1.50%-0.50%9.30%
US (US$)
S&P 5002,648.94-4.10%-0.90%19.40%
Dow Jones Ind24,345.75-4.60%-1.50%25.10%
Hang Seng30,813.17-4.40%3.00%38.50%
Nikkei 22521,610.24-4.70%-5.10%19.10%
Australia 2005,833.34-3.20%-3.80%7.00%
MSCI AC Asia Pacific179.363-1.70%3.20%28.70%
World (US$)
MSCI World (Developed)2,103.64-3.10%0.00%20.10%
MSCI AC World (Dev & Em)515.735-3.00%0.50%21.60%
MSCI Emerging Markets1,209.34-1.70%4.40%34.20%
MSCI AC World Value223.868-2.90%-0.10%15.20%
MSCI AC World Growth279.876-3.00%1.10%28.30%
Fixed Income
FTSE Gilts All Stocks3,503.060.00%-2.40%3.00%
FTSE Index Linked All Stocks627.760.20%-3.10%2.30%
ML Sterling Corporate Bonds395.682-0.10%-1.30%5.70%
ML Global High Yield Bonds380.301-0.20%0.80%9.70%
Commodities (US$)
Brent Crude Oil67.62-1.40%1.80%14.50%
UK Sectors
Basic Materials6,263.36-0.10%-0.90%25.00%
Consumer Goods and Services20,720.68-2.10%-7.30%13.60%
Health Care8,904.82-2.40%-6.40%-3.70%
Oil & Gas8,552.33-1.30%-5.60%6.00%
$ per £1.41180.60%4.50%9.50%
€ per £1.13340.40%0.70%-4.00%
¥ per £155.5210.80%2.20%5.30%
VIX Index (Volatility)37.32115.60%238.00%-21.40%
Baltic Dry Index1,082.00-1.20%-20.80%42.14%
UK Rates
BoE Base Rate0.50%
LIBOR (3 months)0.53%
Consumer Price Index3.00%
Retail Price Index4.10%
Yields / Ratios
FTSE 100 Adj P/E19.45946
FTSE All Share Adj P/E18.94951
FTSE All Share Yld3.96%
15yr Gilt Yield1.80%
10yr Gilt Yield1.56%
10yr US Tres Yield2.71%

Market prices will reflect the last closing prices with the exception of the Asian markets which may be still trading at the time the data is obtained. The data for these markets is therefore a snapshot of live trading data obtained between 06.45 and 07.15 GMT. Growth is shown cumulative and is not annualised. A positive currency movement indicates the £ appreciating against the other currency. Performance data does not account for the re-investment of dividends. This information has been reproduced by kind permission of Bloomberg and does not necessarily reflect the opinions of St. James's Place Wealth Management. St. James's Place considers the information to be reliable but it is not intended to provide a sufficient basis on which to make an investment decision.

Source: FTSE International Limited ("FTSE") © FTSE 2018. "FTSE®" is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.

Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, endorsed, reviewed or produced by MSCI. None of the MSCI data is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such.

Some of the products and investment structures documented within this article will not be available to our clients in Asia. For information on the funds that are available please get in touch.


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