Recent positive economic news from the US and Europe was ignored as the ripple effects from Enron's collapse continued to be felt last week.
It meant another tough five days for global markets as investors also focused on the latest rogue trader scandal from Allied Irish Bank. The FTSE World index lost 2 per cent.
In the US, market sentiment was again driven by a sense of unease and scepticism over corporate accounting practices. General Electric, the world's biggest company, came under scrutiny about the transparency of its accounting. Tyco, the beleaguered conglomerate, continued to suffer after being downgraded by Standard & Poor's.
Wall Street did manage to halt a five-day losing streak on Friday after bargain-hunters snapped up financial, telecom and tech stocks.
Earlier that day, a boost was also provided by upbeat economic data from the US Commerce Department, which reported that inventories had fallen for the seventh consecutive month.
Europe, which hit a three-month low on Wednesday, ended a poor week on a steadier note as good news from Electrolux and Pirelli outweighed continuing dull sentiment elsewhere.
Alliance led the gains in the insurance sector as the German group posted full-year profits in line with analysts' estimates while forecasts for the coming year beat most expectations.
A three-day sequence of losses was brought to a halt in London on Thursday by a buoyant telecom sector but only after the Footsie was driven down towards the 5,000 level.
The blue-chip index ended a week which saw the Bank of England leave the base rate at 4 per cent, down by 1.2 per cent at 5,128.1.
Although the Japanese market ended the week lower, talk of international pressure on Japan to resolve the banking crisis saw the troubled sector soar late in the week, helping the broader market rebound from an 18-year low.
View more on these topicsNews
Treasure in the junk shop
There is an old adage in the bond market that goes: “When we or our clients own a bond, it is high yield. When someone else owns it, it is junk.”But despite the fact that the mere mention of the “J word” is still enough to send many IFAs running for cover, high-yield corporate bonds […]
UK men keep savings secret from partners
Men in the UK have secret savings amounting to £7.4bn which they are not telling their partners about, according to a new study from Virgin One.The survey was planned to coincide with the relaunch of Virgin's current account mortgage last month and arrived at that figure by multiplying £6,385, what it says is the average […]
Do you want to gain a loss?
Many IFAs have clients who are expatriates with existing offshore insurance bonds. Most of these clients will eventually return to the UK and, I hope, will look to the IFA for suitable advice on what action to take before returning to these shores. Looking at just the bond alone, what actions should they consider?Clearly, one […]
Swiss Life and BMA target doctors with IP plan
The medical arm of the British Medical Association and Swiss Life are targeting doctors with a bespoke income protection plan to meet their needs throughout their careers.The BMA Services Income Protection Plan reflects the changing salaries and work patterns as doctors move from their last year of medical school through work in hospitals, general practice […]
The savvy consumer
In last year’s FCA thematic review of the mortgage market, one of the key things highlighted was the “savvy consumer”. That’s the client who comes in the door with a very clear idea of what they need and expect you to get them it. They don’t think they need advice, they have after all consulted […]
Newsletter
News and expert analysis straight to your inbox
Sign up
Introducing…the Money Marketing DFM Centre
Money Marketing recently launched a brand new partner site, the DFM Centre. But what’s it all about, and why should you visit it? Here’s editor Justin Cash with an introduction to a valuable new resource for advisers. Visit the DFM Centre now at https://dfm.moneymarketing.co.uk/
3
Robin Powell: Hargreaves has been selling a fantasy
The best buy list model is under scrutiny as the UK’s largest platform struggles with the suspension of one of its most popular funds If it ain’t broke – the old adage goes – don’t fix it. And on the face of it, there’s nothing much wrong with Hargreaves Lansdown as a business. HL has […]
Brewin Dolphin opens Tunbridge Wells office
Brewin Dolphin has continued its expansion in the Southeast with a new office in Royal Tunbridge Wells. The office will be managed by current Reigate office head Lee Clark, who will also continue to head up operations in Reigate. The office will be partly staffed by employees relocating from Brewin’s London and Reigate offices with […]