View more on these topics

Investment analysis

It was a disappointing week for equity investors, with most of the world&#39s stockmarkets drifting lower due to higher oil prices and some disappointing earnings&#39 announcements from the US technology sector. By the end of last week, the FTSE World index was trading 0.7 per cent lower, having gained 1.2 per cent since the start of the year.

Having risen by 0.25 per cent in May and June, UK interest rates were left at 4.5 per cent last week, which was no surprise to financial markets. However, it was a subdued week for equities and although the FTSE 100 broke a run of seven consecutive days of losses on Thursday, the index still ended the week down by 0.3 per cent. Mid caps fared even worse, with many cyclical stocks running into selling pressure and by Friday&#39s close, the FTSE 250 was nursing a loss of 2.1 per cent while the FTSE SmallCap index ended the week 1.3 per cent lower.

In the US, shares fell to their lowest level since May, with technology stocks particularly weak after some disappointing earnings&#39 statements. Rising oil prices also took their toll on equities although encouraging results from General Electric and an upbeat statement on its future prospects saw share prices rising again on Friday. By the end of the week, the Dow Jones and S&P 500 had fallen by 0.7 per cent and 1.1 per cent while the Nasdaq was trading 3 per cent lower.

Although European oil stocks benefited from rising crude prices, it was not a good week for the broader market, with the FTSE Eurotop 300 index breaking a sequence of seven consecutive days of losses on Thursday and eventually ending the week 0.4 per cent lower.

In Japan, shares fell to their lowest level since early June on political concerns, with the Nikkei 225 ending with a decline of 2.5 per cent.

Elsewhere in the Far East, shares fell in Hong Kong and South Korea, although THEY were generally higher elsewhere.

It was a quiet week for bonds, with the FTSE All stocks index unchanged, leaving 10-year gilt yields at 5.04 per cent.

The spike in oil prices last week saw Brent crude rising to just under $38 a barrel, its highest level since early June.



“Yes. The idea is sound but whether it will be implemented by IFAs or not is another matter.”Chris Moxon,CW Moxon & Co “Yes. I don&#39t expect it will work but something has to be done over misleading ads.”Pravin Bhatt,Bhatt & Associates “Yes, but its success depends on whether people use it.”Michael Rice,MJR Financial Services “I […]

Buy to let service offers investors discount on new homes is launching a new homes investor service which offers buy to let investors discounts of up to 15 per cent on new homes schemes across the UK. The Smart Investor Club offers priority notification of investment opportunities ahead of general release to other buyers, as well as providing investors with an insight into the […]

Skipton Building Society – Flexible 3 Year Stepped Discount

Type: Flexible stepped discounted-rate mortgage Discounted term: Three years Discount: 2.65% in year one, 0.25% in years two and three Payable rate: 3.19% Minimum loan: £5,000 Maximum loan: Up to 95% of valuation subject to a maximum of £200,000, up to 90% of valuation subject to a maximum of £300,000, up to 85% of valuation […]

Chelsea Building Society – Three-Year Fixed Rate

Type: Fixed-rate mortgageFixed term: Until August 31, 2007 Fixed rate: 5.69% Minimum loan: £25,000 Maximum loan: Up to 95% of valuation subject to a maximum of £1m Income multiples: Up to 95% of valuation &#45 up to 3.5 times principal income plus second or 2.75 times joint, up to 90% of valuation &#45 up to […]

Testing the Foundation

The global economy isn’t headed into recession, at least not yet. This month, David Lafferty, Chief Market Strategist at Natixis Global Asset Management, examines current capital market and portfolio risks for signs of recession. Click Here for Capital Market Notes


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