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The Accumulator: sterling shines, balanced funds prosper
Our exclusive stock market data table highlights the recoveries in the pound, oil and emerging markets this week.
by Gavin Lumsden on Mar 04, 2016 at 13:57Follow @FundFanatic
The highlights from The Accumulator, our exclusive stock market data table, this week are the recoveries in the pound, the price of oil and emerging markets.
The top of our table shows the US dollar, Japanese yen and euro fell between 1.5% and 2.4% against the pound as sterling bounced back from last week’s ‘Brexit’ lows.
Oil is priced in dollars whereas our Accumulator table shows all its figures in sterling, so the 7% rise in oil in the week to Thursday’s close is converted into pounds.
Nevertheless, it was a good week for oil which gained $2 a barrel to hit $37.37 after the Organisation of the Petroleum Exporting Companies said it would work with other major oil producers to freeze production.
However, a glut of oil remains with US stocks of crude hitting a record high of 66.3 million barrels last week, which reduces the impact of Opec’s discussions.
It was also a good week for equity markets with the UK’s FTSE 100 advancing 2.2% in the week to Thursday. The blue chip index has gained nearly 6% in the past month which has reduced the fall since the start of the year to 1%. News of US job gains on Friday further lifted spirits.
The big advances were in emerging markets, particularly Brazil which, despite news of its severe recession, marked a 13.5% leap in the MSCI Brazil index.
Corporate bonds managed to keep their heads above water with a 0.5% rise in our table while property also edged higher.
All of which meant was a positive week for mixed asset funds which can invest in shares, bonds, commodities and property and are a good proxy for how savers and investors are faring.
Balanced funds gained 1.6% on average and have added 2.3% in the past month and are not far from erasing their deficit over one year if this rally from the New Year mauling continues.
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by Gavin Lumsden on Jul 22, 2016 at 16:24