Investment Market Update
Asian stocks gained, led by a rally in mining companies after China set an upbeat growth target for this year. Japan equities fell after North Korea fired four ballistic missiles early Monday that fell into the Sea of Japan.
US stocks fell amid declines in financial, consumer and material shares as investors exercised caution after remarks by Federal Reserve Chair Janet Yellen that interest rates are likely to rise next week.
UK stocks were lower on Monday, with mining shares the biggest fallers as the price of copper fell. This outweighed news of a fund management merger between Standard Life and Aberdeen Asset Management. Standard Life shares rose 6%, while FTSE 250 member Aberdeen Asset Management climbed 4%.
- Fund managers Aberdeen Asset Management and Standard Life have agreed terms for an all-share merger. The move will create one of the UK's largest fund managers, overseeing assets worth £660bn. The two companies employ about 9,000 people. Following completion of the merger, Aberdeen shareholders will own about a third of the combined group, with Standard Life shareholders owning the remaining two thirds.
- Energy companies active in the UK North Sea will generate positive free cash flow in 2017 for the first time in four years, as groups show signs of recovery following the oil price crash of 2014, says the industry’s trade body. Exploration and production companies working in the basin are collectively forecast to generate £5bn of free cash flow this year if the rebound in oil prices persists around current levels, said Oil & Gas UK, which represents North Sea operators.
|FTSE All Share||3,996.87||-0.3%||3.2%||12.5%|
|FTSE Small Cap||5,356.51||0.0%||4.1%||11.0%|
|St. James's Place||1,086.00||0.6%||7.1%||3.9%|
|Euro Stoxx 600||373.27||-0.5%||3.3%||-1.2%|
|Dow Jones Ind||20,954.34||-0.2%||6.0%||13.4%|
|MSCI AC Asia Pacific||144.33||0.4%||6.9%||2.3%|
|MSCI World (Developed)||1,845.70||-0.2%||5.4%||5.3%|
|MSCI AC World (Dev & Em)||445.91||-0.1%||5.7%||5.6%|
|MSCI Emerging Markets||934.42||0.4%||8.4%||8.6%|
|MSCI AC World Value||202.63||-0.2%||4.2%||9.5%|
|MSCI AC World Growth||231.28||-0.1%||7.3%||1.8%|
|FTSE Gilts All Stocks||3,540.19||-0.2%||0.4%||8.5%|
|FTSE Index Linked All Stocks||629.76||-0.5%||-1.1%||21.2%|
|ML Sterling Corporate Bonds||386.31||-0.1%||1.3%||10.7%|
|ML Global High Yield Bonds||352.53||0.0%||2.9%||15.0%|
|Brent Crude Oil||56.01||0.2%||-3.5%||23.4%|
|Consumer Goods and Services||21,545.91||-0.1%||9.5%||9.6%|
|Oil & Gas||8,010.21||0.0%||-6.3%||54.2%|
|$ per £||1.24||1.4%||0.5%||-16.3%|
|€ per £||1.18||2.1%||0.6%||-15.7%|
|¥ per £||139.20||-0.2%||-3.7%||-22.7%|
|VIX Index (Volatility)||11.93||8.9%||-15.0%||-22.9%|
|Baltic Dry Index||979.00||4.3%||1.9%||101.1%|
|BoE Base Rate||0.25%|
|LIBOR (3 months)||0.36%|
|Consumer Price Index||1.80%|
|Retail Price Index||2.60%|
|Yields / Ratios|
|FTSE 100 Adj P/E||27.06|
|FTSE All Share Adj P/E||24.99|
|FTSE All Share Yld||3.87%|
|15yr Gilt Yield||1.58%|
|10yr Gilt Yield||1.21%|
|10yr US Tres Yield||2.50%|
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.
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