Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/wealth-manager/article/a702724
FTSE 100 stalls ahead of Lehman anniversary
by Chris Marshall on Sep 13, 2013 at 09:29
Almost five years exactly after the collapse of Lehman Brothers and uncertainty about the end of emergency market support put in place in the wake of the financial crisis was still unnerving investors on Friday morning, with European shares failing to make gains.
Although Britain’s FTSE 100 was heading for its second straight week of gains, the index traded down 0.2% at 6,577 in subdued trade. Other European shares were in similar shape, following small losses in Asia and the US.
Britain’s flagship equity index joins most other indices in managing gains since the devastating events of five years ago, with a rise of 26% amid painfully slow economic and financial rehabilitation – aided by a billions of dollars of freshly minted cash.
That’s nothing on the S&P 500’s 41% gain, which is turn dwarfed by the 100% rise in silver and gold’s 73% leap.
Despite recent difficulties, bonds are still ahead over the same period: German bunds, US treasuries, and UK gilts managed to gain 23%, 20% and 20% respectively over the five-year period (data from Deutsche Bank), while emerging market equities and bonds are still up 33% and 29%.
On the other hand, Greek equities have dropped 66% since the Lehman bankruptcy, while the Stoxx600 Banks index is down 30%.
As commentators sift through the remains five years on, central banks remain in the driving seat of market returns.
This morning investors were awaiting retail sales data from the US for the latest update on the country’s economic strength, and hence the US Fed’s likelihood to resist ‘tapering’ back its bond buying scheme at this month’s policy meeting.
News sponsored by:
Today's top headlines
More about this:
Look up the shares
- Anglo American PLC (AAL.L)
- Glencore Xstrata PLC (GLEN.L)
- Standard Life PLC (SL.L)
- Schroders PLC (SDR.L)
- Aberdeen Asset Management PLC (ADN.L)
On the road
by Danielle Levy on Dec 06, 2013 at 07:46