View more on these topics

Investment analysis

Global markets performed poorly last week as investors juggled with fears

of inflation and falling corporate earnings. The FTSE World Index ended the

week down by 1.9 per cent. Of the major markets, Japan and Hong Kong lost

3.7 per cent and 4.5 per cent.

In the US, mixed economic news caused confusion. The latest job figures

were better than expected but there was a negative showing from the

manufacturing sector where the purchasing management index for May fell

steeply.

Alan Greenspan acknowledged, for the first time, that continued aggressive

monetary easing could fuel inflation, suggesting future cuts may be in

smaller steps. Investors still seem more concerned about falling corporate

earnings, judging by their reaction to Sun Micro Systems latest profit

warning. It lost 13 per cent on Wednesday.

The FTSE 100&#39s recent attack on 6,000 was long forgotten as it saw four

consecutive sessions of losing performance. Friday saw the index firm up

amid hopes of a pre-election rally and a strong possibility of a further

cut in base rates when the monetary policy committee meet on Thursday.

UK markets had to cope with domestic news which showed a worryingly weak

survey of the manufacturing sector, suggesting it had declined to its

lowest level since Jan 1999. This tied in with data from Europe where the

purchasing managers index was also at its lowest level since January 1999.

Following the recent poor German business survey, last week saw similar

figures showing French business confidence has fallen to a two-year low.

Poor domestic news saw the UK market finish the week lower, with the FTSE

100 and the Allshare ending off by 1.4 per cent and 1.2 per cent. Small and

mid-cap stocks were unable to sustain their recent positive performance,

the respective indices losing 1.4 and 0.2 per cent.

Recommended

Software developed to assess endowment misselling

Oxford Actuaries and Consultants, a provider of consultancy and information services to the insurance and pensions industry, is launching a new software system to help companies calculate compensation if endowment mortgages are found to be missold. Its Endowment Mortgage Expert System, based on technology developed during the pensions review, is designed to lead the user […]

The bones of the bonus

Recently, a trio composed of some of our oldest and most respected lifeoffices, Friends Provident (formed by Quakers in 1832), Legal & General(1836), and Scottish Widows (1815) incurred the wrath of an organisationknown as Chartwell by refusing to disclose the underlying investmentperformances of their with-profits funds. Instantly, the media was crammed with highly critical comment […]

Allied Dunbar launches IFA software

Allied Dunbar franchisees will be able to underwrite customers for protection policies at the point of sale when it launches new laptop-compatible software later this summer.Allied Dunbar claims the system ensures all the customer&#39s needs are correctly identified and that an adviser cannot overlook an area of need or offer an incorrect product. The system […]

Inside View – John Cowan

Is it just me or is this election campaign simply a non event? Dividingmy time between London Village and Central Scotland, I find that geographiclocation has made no difference to the level of public interest in thecampaign. Sure, there are posters everywhere, politicians out pressing flesh butsomehow it hasn&#39t all come together. Foot and mouth […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com