Citywire for Financial Professionals
Stay connected:

View the article online at

The Accumulator: FTSE trails as Europe leads fightback

European markets have extended their advantage over the US and UK this year by leading this week's recovery.

The Accumulator: FTSE trails as Europe leads fightback

Global markets recovered some ground this week as fears over a US nuclear standoff with North Korea began to ease, but the FTSE 100 wasn't able to join in the party.

With today's 1% drop, the UK blue-chip index has now fallen back to last week's lows, sparked by the tensions between the two nuclear powers. Our Accumulator data table shows the index is the worst performer in pound terms in the week to yesterday, although it's worth noting the S&P 500 was hit harder, making it into the black only thanks to the dollar's rally.

That contrasts with the stronger recovery seen in Europe, with the German DAX 30 the best performing major global stock market this week, up 2.3% in pound terms.

European markets continue to outpace the US and the UK this year, with eurozone gross domestic product figures released this month underlining the region's recovery.

Growth of 0.6% in the second quarter was in line with preliminary estimates, and up from 0.5% in the first. That means the eurozone is growing at twice the pace of the UK, whose economy grew by just 0.2% in the first quarter of the year and 0.3% in the second.

More importantly for investors, however, that growth is being reflected in company earnings, with two-thirds of European companies reporting better-than-expected earnings in the first quarter, the strongest showing in 14 years.

Currency has also played a part, with the euro's strength amplifying gains from European markets for UK investors. That was the case again this week, with the euro rising against a pound weakened by a surprise stall in inflation.

The strength of the European currency could even ensure that easy money keeps sloshing around the region for a little bit longer. Minutes from the European Central Bank's latest meeting, released yesterday, showed policymakers' concern over the currency 'overshooting', which could put the brakes on an imminent tapering of its bond-buying quantitative easing programme.

You can access the Accumulator table here.

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

The Citywire Guide to Investment Trusts

In this guide to investment trusts, produced in association with Aberdeen Asset Management, we spoke to many of the leading experts in the field to find out more.

Watch Now

Today's articles

Tools from Citywire Money

From the Forums

+ Start a new discussion

Weekly email from The Lolly

Get simple, easy ways to make more from your money. Just enter your email address below

An error occured while subscribing your email. Please try again later.

Thank you for registering for your weekly newsletter from The Lolly.

Keep an eye out for us in your inbox, and please add to your safe senders list so we don't get junked.


Barnett eyes revival and 'refines' unquoted portfolio

by Daniel Grote on May 23, 2018 at 16:09

Sorry, this link is not
quite ready yet