View more on these topics

Investment analysis

Despite the terrorist attack in Bali, which saw a raft of selling in airline and tourism stocks, world equity markets remained on a powerful roll early last week, spurred on by a bout of strong corporate data.

Wall Street and the European bourses registered their strongest four-day gain in more than a decade by Tuesday&#39s close. However, the back end of the week saw the markets pause for breath amid profit-taking and corporate disappointments.

In the US, strong earnings reports from financial giants Citigroup & Bank of America and mortgage lender Fannie Mae helped the Dow Jones register a four-session gain of 13 per cent, its best performance since 1969. However, the market rally was halted by downbeat results from technology bellwether Intel and Motorola before resuming on positive news from IBM and Microsoft and strong housing data. Markets appeared to have ignored gloomy findings from the Philadelphia Federal Reserve survey on business outlook and by the end of the week the Dow Jones and S&P 500 gained near 6 per cent while the Nasdaq rose by 7.4 per cent.

Europe had its fair share of corporate news, much of it positive. Nokia said it expected to meet its target for operating margins and global sales while SAP, Europe&#39s biggest software maker reported stronger than forecast profit figures and Phillips, the region&#39s biggest consumer electronics company, reported losses had more than halved from the previous year. Despite some profit-taking, bourses performed strongly with the Dax & CAC40 gaining 7.9 per cent and 8.8 per cent respectively.

In the UK, the FTSE 100 gained 5 per cent on Tuesday and broke through the 4,000 level for the first time in a month. Strong third-quarter sales figures from Prudential helped the life insurance sector continue its three-week bounce. Over the week, the FTSE 100 gained 4.5 per cent. The FTSE 250 was up by 4.4 per cent and the Hoare Govett smaller companies index gained 4 per cent.

In Japan, bargain-hunting among the blue chips on Tuesday saw markets stage their biggest one-day gain for more than six months and on Friday a rally in tech stocks helped the Nikkei surge past 9,000, to end with a gain of 6.5 per cent.

Recommended

Keydata Investment Services – The Capital Plus Account

Tuesday, 22 October 2002 Type: Tessa only Isa Aim: Growth linked to the FTSE 100 index Minimum investment: Lump sum £5,000 Maximum investment: £9,000 Catmarked: No Investment choice: 100% linked to the FTSE 100 index Charges: Implicit Commission: Initial 3% Tel: 020 7710 6906

PI in the sky as IFA&#39s premiums rocket by 650%

A Brighton IFA has been hit with a 650 per cent rise in its professional indemnity insurance despite having minimal exposure to potential endowment or split-cap misselling claims.SR Financial Management submitted a PI renewal form to insurer St Paul several weeks ago, expecting to receive a quote roughly comparable to the £5,040 it paid for […]

Compulsion is morally wrong, says Standard

Standard Life is warning the Government that pension compulsion is morally wrong and it should instead bolster the state pension.In its submission to the Work and Pensions select committee, Standard says it supports former pensions minister Frank Field&#39s proposals for a new partially funded state pension even though it would mean an end to contracting-out […]

L&H Fundstore offers access to 650 funds

Leeds & Holbeck Building Society is launching Fundstore, a white-labelled version of Fidelity&#39s FundsNetwork fund supermarket.The service, initially aimed at L&H&#39s existing customers, will offer investors access to the full range of funds from nearly 50 fund managers available from the Fidelity supermarket.The service is on an execution-only basis and allows investors to mix and […]

Naming a reward programme

Six tips to get your reward programme name right

by Debra Corey, group reward director  Choosing a name isn’t easy. Whether it’s for your new puppy, a bundle of joy or your reward programme, a name determines a first impression – and often a lasting memory. When it comes to your reward programme, the name will determine how your employees feel about it even before […]

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