Weekly market review
Week ending 1st April 2016
The UK stock market made a slight gain last week, closing at 6146.05, while the US stock market gained 1.8%, spurred higher by Federal Reserve (Fed) Chairwoman Janet Yellen’s careful remarks that the Fed will proceed cautiously with interest rate hikes given recent mixed economic data. Meanwhile, Japan’s Topix Index closed down 3.8%, capping its worst quarter since September 2015, driven by declines in energy-exploration companies. The Euro Stoxx 600 Index was down 0.5%, interrupting the rebound off early-year lows.
UK and US 10-year government bonds yields fell 0.44% and 0.11% respectively, with the latter hitting a 1-month low on the back of the Fed's caution on rate hikes. Both Italy and Germany’s 10-year bond yields also fell.
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The British Pound seesawed in the $1.42-$1.44 band that the pair has mostly traded in since early March, weighed down by weak manufacturing data. Global currencies gained, as Yellen’s comments sent the US dollar tumbling to a 5-month low. In constrast, mixed economic data didn’t hold back the euro, which resumed its ascent against the dollar, touching the $1.14 level.
West Texas Intermediate (WTI) crude oil traded near a two-week low, dropping 6.8% as inventories remain at an all-time high. Even so, WTI was up 14% in March after rebounding from a 12-year low in the prior month. Gold rose 0.5% last week, capping its biggest quarterly advance since September 1990.
Source: Goldman Sachs Asset Management. Adapted by FundCalibre. This material is for information purposes only and does not in any way constitute financial advice.
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