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Investment Market Update

23 February 2017

World markets

FTSE 100 0.4% 7302.25
FTSE 250 -0.5% 18677.59
Euro Stoxx 600 0.0% 373.38
S&P 500 -0.1% 2362.82
Nikkei 0.0% 19371.46
Hang Seng (HK$) -0.4% 24112.73

asia

Asian shares retreated for the first time this week as investors focused on corporate earnings amid signals that equities’ gains have been excessive.

us

US stocks closed mixed on Wednesday as investors assessed minutes from the latest Federal Reserve policy meeting for insight on the outlook for interest rates and as the price of oil declined.

uk

UK stocks closed higher, with Unilever the biggest gainer, up 5.7%, after promising a review on ways to increase value for shareholders. The move follows its rejection of Kraft Heinz's £115bn offer for the consumer goods giant. Lloyds closed 3.7% higher after announcing sharply higher annual profits.


Headlines

  • Federal Reserve officials have said they may need to raise interest rates "fairly soon" if the economy stays strong, minutes of their meeting show. The first meeting of the Fed since Donald Trump took office as president discussed the possibility of a rate rise as early as March. Most economists have been forecasting a rise in June. However, Fed officials appear divided on the timing of a rise amid uncertainty over Mr Trump's policies. "Several'' expressed fears that unemployment could fall substantially below the Fed's 4.8% target. That could trigger inflation pressures and force the Fed to boost rates at a faster pace than financial markets expect.
     
  • The UK economy grew by more than previously reported in the final three months of 2016, according to the latest official estimate. Gross Domestic Product (GDP) increased by 0.7%, up from 0.6%, according to the Office for National Statistics (ONS). The upward revision is mainly due to manufacturing industry having done better than thought. The ONS cut its estimate for growth in 2016 as a whole to 1.8%, down from the 2% it forecast last month. This downward revision pushes UK slightly below Germany, with an estimate of 1.9%, in the G7 growth league, said John Hawksworth, chief economist at PwC, "though the difference is well within the margin of error on any such early GDP estimates."

Market data

Price1dYTD2016
UK (£)
FTSE 1007,302.250.4%2.2%14.4%
FTSE 25018,677.59-0.5%3.3%3.7%
FTSE All Share3,968.620.2%2.5%12.5%
FTSE Small Cap5,341.87-0.2%3.9%11.0%
St. James's Place1,087.00-0.3%7.2%3.9%
Europe (€)
Euro Stoxx 600373.380.0%3.3%-1.2%
DAX 3011,998.590.3%4.5%7.0%
CAC 404,895.880.1%0.7%4.9%
US (US$)
S&P 5002,362.82-0.1%5.5%9.5%
Dow Jones Ind20,775.600.2%5.1%13.4%
NASDAQ5,860.63-0.1%8.9%7.5%
Asia
Hang Seng24,117.12-0.4%9.6%0.4%
Nikkei 22519,371.460.0%1.3%1.8%
Australia 2005,784.66-0.4%2.1%7.0%
MSCI AC Asia Pacific146.090.6%8.2%2.3%
World (US$)
MSCI World (Developed)1,842.370.0%5.2%5.3%
MSCI AC World (Dev & Em)446.040.0%5.7%5.6%
MSCI Emerging Markets950.950.6%10.3%8.6%
MSCI AC World Value202.600.0%4.2%9.5%
MSCI AC World Growth231.460.1%7.3%1.8%
Fixed Income
FTSE Gilts All Stocks3,518.860.4%-0.2%8.5%
FTSE Index Linked All Stocks629.020.3%-1.2%21.2%
ML Sterling Corporate Bonds383.010.3%0.5%10.7%
ML Global High Yield Bonds351.430.1%2.6%15.0%
Commodities (US$)
Brent Crude Oil55.84-1.4%-2.9%23.4%
Gold1,233.90-0.3%7.0%8.6%
UK Sectors
Basic Materials5,678.28-1.3%12.4%93.9%
Consumer Goods and Services21,273.321.3%8.1%9.6%
Financials4,983.440.8%4.3%8.6%
Health Care10,272.110.2%4.0%5.8%
Industrials3,968.620.2%2.5%15.4%
Oil & Gas7,790.48-0.6%-8.9%54.2%
Technology2,118.90-0.7%5.9%33.4%
Telecommunications3,252.821.0%-3.8%-14.7%
Utilities8,739.660.0%1.5%2.5%
Currencies
$ per £1.240.0%0.8%-16.3%
€ per £1.180.0%0.5%-15.7%
¥ per £140.75-0.3%-2.6%-22.7%
Indicators
VIX Index (Volatility)11.741.5%-16.4%-22.9%
Baltic Dry Index806.003.6%-16.1%101.1%
UK Rates
BoE Base Rate0.25%
LIBOR (3 months)0.00%
Consumer Price Index1.80%
Retail Price Index2.60%
Yields / Ratios
FTSE 100 Adj P/E27.83
FTSE All Share Adj P/E25.36
FTSE All Share Yld3.83%
15yr Gilt Yield1.64%
10yr Gilt Yield1.20%
10yr US Tres Yield2.41%

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 2017. "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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