View more on these topics

Investment analysis

It was another week of extreme turbulence in global stockmarkets as investors continued to sell, reacting to disappointing corporate data, the continued threat of another big bankruptcy and a worse than expected US trade deficit for May. The benchmark FTSE World index lost a further 2.1 per cent bringing its losses since the start of the year to 16.3 per cent

The US markets continued to fall despite a speech by President Bush and Alan Greenspan&#39s testimony before the senate committee, both on the fundamental strength of the economy. After breaking a seven-day losing streak on Wednesday, the Dow continued to fall in the final two sessions bringing its losses over the five days to 7.7 per cent. Dow Constituent IBM reported a 97 per cent fall in second-quarter profits compared with last year. On Friday, a report that a criminal investigation was being launched against Johnson & Johnson saw its share price tumble by 16 per cent. Negative guidance from Microsoft and Sun Microsystems added to the falls. Markets did not react well to a record US trade deficit which also caused the already weakened dollar to fall against the euro and the yen. The S&P 500 and Nasdaq, both of which remain stuck at 1997 trading levels, fell by 8 per cent and 3.5 per cent respectively.

There was some good news from Europe over the week but European bourses followed the US lower. Swedish company Electrolux, the world&#39s biggest home appliance maker, beat expectations for second-quarter earnings and Nokia met its forecasts. However, it was the broad sell-off at the start of the week which dictated events, leaving the FTSE Eurotop 300 off by more than 5 per cent and every French blue-chip stock and all but one of Germany&#39s Dax 30 constituents lower.

In the UK, a three-day rally on the back of good figures from the likes of mobile phone operator MMO2, software group Misys and Miner Rio Tinto, came to an abrupt end on Friday when investors responding to falls in the US, drove the indices lower.

In Japan, the Nikkei 225 fell back to a three-week low hit by a resurgent yen and sharp falls on Wall Street. The technology-sensitive index lost nearly 4 per cent over the week.


IFA business profits reach almost £3,000 per RI

Misys is making a profit of almost £3,000 per RI, according to its financial results published last week.The Misys IFA stable of networks, which has 7,500 members, made a profit of £22m from IFA businesses in 2002, giving an average profit per IFA of £2,933.Total turnover through Misys&#39 IFAs was £408m while the financial services […]

Keydata Investment Services – Secure Growth Portfolio 5

Wednesday, 24 July 2002 Type: Guaranteed growth bond Minimum-maximum investment: £3,000-no maximum Term: Five years Charges: Implicit Return: Up to 200% of average growth in First State Asia Pacific, HSBC UK growth & income, Investec European, JPMF premier equity growth, New Star UK growth, Threadneedle American select growth Guarantee: Choice of 80%, 90% or 100% […]

Treasury rethinks regulation timetable

The Treasury has published a revised timetable for the regulation of mortgages and general insurance as it is still waiting for the EU to adopt the insurance intermediary directive.The new timetable says mortgage legislation should be published in its final form by the end of this month, rather than last, and the FSA consultation will […]

PI&#39s the limit

Do you think small mortgage IFAs/brokers will be forced out of the market because of increasing costs of professional indemnity cover?Charlesworth: Yes, undoubtedly the cost of PI will have an effect on the smaller mortgage brokers who may decide that the increased cost and compliance burden makes the option of outsourcing the mortgage advice element […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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