ARGENT WEALTH LTD
  • Home
  • About Us
    • Vouchedfor Top Rated Adviser
    • Privacy Notice
  • Our Services
  • Video Gallery
  • Testimonials
  • Contact us
  • Blog
  • Helping make a difference
  • Links

Market update - Summer

1/10/2017

0 Comments

 
Summer months are traditionally quiet in terms of news, with many market participants absent.
 
The period saw broadly neutral returns from equities.  Bond markets were able to offer some positive returns, in light of relatively benign economic data. The major themes of Brexit and US/North Korea were largely 
ignored by investors. 
 
UK
The last couple of months saw little progress in the UK’s Brexit negotiations with the European Union, with the same sticking points of the free movement of people and the ‘divorce bill’ being rehashed in the press on a daily basis. These points are reported to be holding up the very substantial talks that will be needed to work out the fine detail of what the relationship will eventually look like. This culminated in Theresa May's Florence speech where she attempted to clarify certain aspects but not others. It could have done just enough to unblock the stalled divorce talks. 
 
Britain wants a translation siting period aimed at bridging the gap between leaving the EU in March 2019 and beginning the new trading relationship. May envisages this lasting around 2 years. 
 
Europe 
European equities declined during the period. Economic data remained robust, but the strength of the Euro during 
the month presented a headwind for shares. The biggest laggard was Spanish equities, this was due, in large measure, to
the terrorist attacks in Barcelona and Cambrils.

Overall however the region continues to show signs of stable growth with the recent Economic Sentiment Indicator increasing to its highest level since July 2007.
 
US
Equities remained very flat over the period. 
 
President Trump’s handling of the North Korean crisis has been criticised for his attempts to use economic measures to exert influence on other Asian nations, particularly China, threatening to cut off trade with any country that does business with North Korea. Previous Presidents have managed to separate security issues from trade issues and co-operate on the one, whilst competing on the other. Mr Trump’s determination to link the two is a departure from historical US policy and it is unclear how the US stands to benefit from it, given that more than a quarter of US exports go to Asia.
 
Japan
Japanese equities ticked up over the period and economic news was mostly positive with GDP rising 1.0% (quarter on quarter), the strongest result in two years.
 
In political news, Prime Minister Abe appeared to recover somewhat from a series of scandals over the past few months which have called into question the stability of the Abe Government and implementation of the “Abenomics” economic reform agenda. Following a cabinet reshuffle in late July economic data exceeded expectations and inflation achieved a small, but welcome, tick upwards, offering hope that Abenomics is indeed starting to work. Abe also dissolved parliament and called for a snap election recently, seeking a mandate to stick to his tough stance toward a volatile North Korea and an aim to rebalance the social security system.

Emerging Markets
Emerging market equities were positive and they continued to experience positive inflows. August saw a lessening of the influence of emerging tech giants in aggregate market returns and broader market participation from other sectors, notably financials. Larger capitalisation companies slightly outpaced smaller and mid-size companies. 
 
Among specific countries South Korea was the laggard with the KOSPI falling as political tensions weighed on market sentiment following Trump’s promise to meet any North Korean threat to the US
with “fire and fury” and a threat to “totally destroy” the country. 
0 Comments
<<Previous

    Author

    Director, David Hardman has over 20 years experience in financial services.

    Archives

    December 2020
    October 2020
    June 2020
    March 2020
    December 2019
    October 2019
    June 2019
    March 2019
    December 2018
    September 2018
    June 2018
    March 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015

    Categories

    All
    Article 50
    Bank Of England
    Bonds
    Bond Yields
    Brexit
    Budget
    Capital Gains Tax
    Chancellor
    Charitable Donation
    Commodities
    Coronavirus
    Corporation Tax
    Cover
    COVID 19
    Critical Illness
    Currency
    Death
    Deeds
    Defined Benefit Pension Transfer
    Deposit
    Deposit Account
    Director
    Disability Allowance
    Dividend
    Earnings
    Economy
    Emerging Markets
    Employees
    Equities
    Equity Loan
    Equity Release
    EU
    Europe
    Executive Income Protection
    Finanial Protection
    FTSE 100
    General Election
    Gifts
    Government
    Grandchildren
    Health Insurance
    Help To Buy
    HMRC
    Household Income
    IHT
    Income
    Income In Retirement Planning
    Income Protection
    Income Protetion
    Income Tax
    Inflation
    Inheritance Tax
    Insurance
    Interest Rates
    Investment
    Investors
    ISA
    ISAs
    Junior ISA
    Legacy Plan
    Life Cover
    Life Insurance
    Lifetime ISA
    Liquidity
    Loans
    Market Correction
    Markets
    Mortgage
    National Insurance
    Pension
    Pension Contributions
    Pension Triple Lock
    Personal Pension
    Property
    Protection
    Retirement
    Safeguarding Assets
    Salary Sacrifice
    Savings
    Stamp Duty
    State Pension
    Statutory Sick Pay
    Stocks
    Tax Cuts
    Teenagers
    Top Tips
    Trusts
    Universal Credits
    Volatility
    Whole Of Life Insurance
    Young People

    RSS Feed