Investment Market Update
Asian markets struggled Friday as caution prevailed following the previous day's rally, with investors concerned about a lack of detail on Donald Trump's tax reforms and spending promises in his first budget.
US stocks closed mostly lower, weighed by losses in the healthcare sector after US President Donald Trump released his budget blueprint that proposed cutting spending for the National Institutes of Health by $5.8 billion.
UK stocks hit new record highs on Thursday as investors reacted to Wednesday's interest rate rise by the US Federal Reserve. Mining companies dominated the risers, with Anglo American topping the leaders' board with an 8% increase.
- UK interest rates should be raised, despite risks in the economy, according to a member of the Bank of England's rate-setting committee. Kristin Forbes, a US academic, was the only member of the Monetary Policy Committee to vote to raise rates this month. This was the first split between policymakers on rates since last July. "Monetary policy should not go on hold," Ms Forbes wrote in an opinion piece in the Daily Telegraph. Ms Forbes, who is due to leave the Bank in June, said raising rates would lessen the risk of above-target inflation, and boost an improved outlook for unemployment and UK output. Official data on Wednesday showed UK pay growth, adjusted for inflation, halved to just 0.7% - the lowest since October 2014.
- Germany's finance minister Wolfgang Schaeuble has said it is in the EU's interest to have a strong financial centre in London. Speaking ahead of Friday's G20 meeting, Mr Schaeuble said he would want to negotiate a Brexit deal in which the City of London remains a global financial force. In a keynote address to the IIF Conference in Frankfurt, he said: "I am convinced that for Europe as a whole - and I'm not sure this will be very beloved in Paris - it's in our own interests to have strong financial centre in London."
|FTSE All Share||4,031.53||0.6%||4.1%||12.5%|
|FTSE Small Cap||5,392.05||0.3%||4.8%||11.0%|
|St. James's Place||1,080.00||-0.3%||6.5%||3.9%|
|Euro Stoxx 600||377.73||0.7%||4.5%||-1.2%|
|Dow Jones Ind||20,934.55||-0.1%||5.9%||13.4%|
|MSCI AC Asia Pacific||148.07||1.6%||9.6%||2.3%|
|MSCI World (Developed)||1,864.10||0.5%||6.4%||5.3%|
|MSCI AC World (Dev & Em)||451.36||0.7%||7.0%||5.6%|
|MSCI Emerging Markets||963.20||2.1%||11.7%||8.6%|
|MSCI AC World Value||204.68||0.7%||5.3%||9.5%|
|MSCI AC World Growth||234.60||0.7%||8.8%||1.8%|
|FTSE Gilts All Stocks||3,538.33||-0.1%||0.4%||8.5%|
|FTSE Index Linked All Stocks||635.70||-0.4%||-0.2%||21.2%|
|ML Sterling Corporate Bonds||385.57||-0.1%||1.1%||10.7%|
|ML Global High Yield Bonds||351.00||0.6%||2.5%||15.0%|
|Brent Crude Oil||51.74||-0.1%||-10.9%||23.4%|
|Consumer Goods and Services||21,930.10||0.1%||11.4%||9.6%|
|Oil & Gas||7,923.91||0.9%||-7.3%||54.2%|
|$ per £||1.22||-1.2%||-1.1%||-16.3%|
|€ per £||1.15||-0.2%||-2.0%||-15.7%|
|¥ per £||140.20||0.2%||-3.0%||-22.7%|
|VIX Index (Volatility)||11.21||-3.6%||-20.2%||-22.9%|
|Baltic Dry Index||1,172.00||2.2%||22.0%||101.1%|
|BoE Base Rate||0.25%|
|LIBOR (3 months)||0.34%|
|Consumer Price Index||1.80%|
|Retail Price Index||2.60%|
|Yields / Ratios|
|FTSE 100 Adj P/E||27.13|
|FTSE All Share Adj P/E||24.91|
|FTSE All Share Yld||3.87%|
|15yr Gilt Yield||1.61%|
|10yr Gilt Yield||1.25%|
|10yr US Tres Yield||2.54%|
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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