View more on these topics

Investment analysis

It was a mixed week for global stockmarkets. A drop in US consumer confidence in July and the release of a disappointing economic report on employment in the world&#39s leading economy dampened investor confidence and provoked some profit-taking around the globe. By Friday&#39s close, the benchmark FTSE World index had fallen by 1.5 per cent. However, European and Asian markets continued to advance.

In the US, markets were swayed by economic data. The release of the Conference Board&#39s monthly index on Tuesday showed that confidence in the US had slipped to a level last seen March, when the US was in the middle of its war on Iraq. The employment report issued on Friday also surprised many economists who expected America&#39s employers to have added jobs to their payrolls rather than incur losses of some 44,000. There was some positive data, with a US Commerce Department report showing economic growth up in the second quarter at an annualised rate of 2.4 per cent but despite this, the Dow, S&P 500 and the Nasdaq 100 fell by 1.4 per cent, 1.9 per cent and 1.1 per cent respectively.

It should have been a better week for the UK&#39s primary index after most of the FTSE 100 constituents that reported last week met or exceeded expectations. However, the focus was on economic news from across the Atlantic, which led the footsie to a loss of 0.6 per cent over the five days. ICI was by far and away the best blue chip, gaining 27.8 per cent over the week after second-quarter results outstripped forecasts and it announced 1,400 job cuts. The more cyclical and domestically-oriented FTSE 250 also enjoyed some good results – United Business Media, Cookson and George Wimpey to name three, and held on to a weekly gain of 2.2 per cent. The FTSE small cap index rose by 1.8 per cent.

European markets had a better week on the back of encouraging economic news and a further batch of mostly bullish company results – the benchmark FTSE Eurotop 300 index which touched a sevenmonth high during the week moved forward by 1.3 per cent, with Germany&#39s Dax and France&#39s CAC40 advancing 2.4 per cent and 1.9 per cent respectively.

Recommended

Standard Life cuts bonuses

Standard Life has again cut its bonuses, reducing payouts by an average of 6 per cent.This means a £50 a month 25-year with-profits endowment policy, is now worth £69,386 down from £75, 984. This represents an annual return of 10.7 per cent on total premiums of £15,000. There is to be no change to annual […]

Franchise is given go-ahead for VAT-free fees

A Leeds-based IFA franchise says it has received a concession from Customs & Excise allowing it to charge clients fees without having to hit them with VAT.True Financial Planning says its advice process has been approved by the Finance Unit of Expertise within C&E. It means that as long as advisers adhere specifically to its […]

Buy to let viable alternative to pensions says UCB

Rising numbers of people are viewing investment in property as a viable long-term alternative to pensions and other investments, according to specialist lender UCB Home Loans.A report by the Nationwide subsidiary reveals that buy-to-let activity remains buoyant in areas including Bristol, Northampton, Leeds, Manchester and Newcastle. UCB says this indicates how far attitudes towards renting […]

Investment houses collaborate on social and environmental issues

Eight institutional investors are forming a group to research and identify best practice for communicating with companies on social and environmental issues. Co-operative Insurance Society, Henderson Global Investors, Insight Investment, ISIS Asset Management, Jupiter Asset Management, Morley Fund Management, Schroder Investment Management and Universities Superannuation Scheme will support the Institutional Investors Group on Climate Change […]

Johnson Fleming is a finalist at UK Pensions Awards 2016

The UK Pensions Awards shine the light on excellence and recognise the advisers, providers and investment managers that offer the highest level of innovation, performance and service to occupational pension schemes and their members. This year’s awards looked at advisers and providers across 31 different categories and were rigorously judged by a panel of senior […]

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