Investment Market Update
Asian stocks weakened on Thursday as rising US Treasury yields threatened to pose a fresh test for equity investors. The dollar maintained declines against most major peers and oil extended gains.
US stocks closed mostly higher Wednesday as investors took escalating trade tensions in stride to instead focus on improving economic fundamentals.
UK stocks extended its rally on Wednesday to hit a near two-week high as investors focussed on hopes a US-China trade war was losing intensity.
- The UK inflation rate unexpectedly rose in August to 2.7%, the highest level in six months. Economists had expected a Consumer Prices Index rate of 2.4%. The pound rose after the data was released by the Office for National Statistics. Wages are still rising more than inflation, with data last week showing wages, excluding bonuses, grew by 2.9% in the three months to July.
- Argentina's economy shrank by 4.2% in the second quarter, its sharpest year-on-year slowdown since 2014. The decline was accompanied by a steep fall in exports, after a drought hurt the country's agricultural sector. The contraction also came amid a currency crisis that has prompted the central bank to raise interest rates to 60% and the government to cut spending.
|FTSE All Share||4,054.63||0.4%||-4.0%||9.0%|
|FTSE Small Cap||5,814.25||0.4%||-1.7%||14.9%|
|St. James's Place||1,111.50||1.4%||-9.3%||20.9%|
|Euro Stoxx 600||379.98||0.3%||-2.4%||7.7%|
|Dow Jones Ind||26,405.76||0.6%||6.8%||25.1%|
|MSCI AC Asia Pacific||164.05||1.3%||-5.6%||28.7%|
|MSCI World (Developed)||2,177.74||0.3%||3.5%||20.1%|
|MSCI AC World (Dev & Em)||521.98||0.3%||1.7%||21.6%|
|MSCI Emerging Markets||1,031.07||1.1%||-11.0%||34.2%|
|MSCI AC World Value||219.10||0.5%||-2.2%||15.2%|
|MSCI AC World Growth||292.39||0.2%||5.6%||28.3%|
|FTSE Gilts All Stocks||3,526.08||-0.5%||-1.8%||3.0%|
|FTSE Index Linked All Stocks||620.70||-0.5%||-4.2%||2.3%|
|ML Sterling Corporate Bonds||391.71||-0.4%||-2.3%||5.7%|
|ML Global High Yield Bonds||378.39||0.0%||0.3%||9.7%|
|Brent Crude Oil||79.40||0.5%||24.0%||14.5%|
|Consumer Goods and Services||19,629.11||-0.7%||-12.2%||13.6%|
|Oil & Gas||9,336.13||0.3%||3.0%||6.0%|
|$ per £||1.31||-0.2%||-2.8%||9.5%|
|€ per £||1.13||0.0%||0.0%||-4.0%|
|¥ per £||147.56||-0.1%||-3.1%||5.3%|
|VIX Index (Volatility)||11.75||-8.1%||6.4%||-21.4%|
|Baltic Dry Index||1,373.00||1.3%||0.5%||42.1%|
|BoE Base Rate||0.75%|
|LIBOR (3 months)||0.80%|
|Consumer Price Index||2.70%|
|Retail Price Index||3.50%|
|Yields / Ratios|
|FTSE 100 Adj P/E||12.24|
|FTSE All Share Adj P/E||12.31|
|FTSE All Share Yld||4.20%|
|15yr Gilt Yield||1.75%|
|10yr Gilt Yield||1.61%|
|10yr US Tres Yield||3.06%|
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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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.