Market Views
This summarises the current views of our investment team. It is intended
as a guide to our outlook but is subject to change without notice and
should not be taken to constitute investment recommendations for any area
or product. The detailed reports are generally updated quarterly and the
World Markets summary monthly.
Quarterly Market Update - an easy to understand summary of world markets
Detailed Market Reports
Detailed reports are available on the following market sectors
|
| Key: |
Positive  |
Neutral  |
Negative  |
| Market |
Positives |
Negatives |
Outlook |
View |
| U.K. EQUITIES |
Parts of the market offer good value
Economic leading indicators still fair
Corporate activity picking up
|
Tax increases to come
Spending cuts
Funding issues
Problems in the eurozone
Inflation picking up
|
Weak recovery in economic growth
Low interest rates set to remain
|
|
| U.K. BONDS |
Emergency budget liked by investors in UK and overseas
MPC expected to keep interest rates low until economic recovery is clear
|
Global economy recovering
Heavy gilt issues to fund large government deficit
Disappointing May inflation figures; CPI back to 3.4%
|
Outlook for gilts balanced in face of strong positive and negative forces
|
|
| EUROPEAN EQUITIES |
Profit margins stabilizing
Valuations attractive
|
Government deficits rising
Unemployment rising
Stress in Spain, Ireland, Greece and Portugal
|
Weak recovery in economic growth |
|
| U.S. EQUITIES |
Corporate sector strong
Fed very aggressive
Dollar strong
|
Can growth be sustained?
Unemployment a concern
|
Recession over
Some concerns about sustainability of growth
|
|
ASIA PACIFIC EX JAPAN EQUITIES |
Strong corporate balance sheets
Better economic fundamentals than developed economies
Strong domestic demand
|
A number of Asian countries to hike interest rates in 2010
EU credit crisis to hurt investment sentiment
|
Concerns over Asia's exports to Europe
Inflationary pressures could hurt margins
|
|
| JAPANESE EQUITIES |
Overseas recoveries supporting demand for Japanese goods
Stronger corporate and consumer balance sheets than other economies
Valuations in attractive territory
|
Strong currency could hurt exporters earnings and competitiveness
Earnings at exporters dependent on a continued global economic recovery
|
Domestic economy continues to gather momentum
Concerns over the economic growth environment overseas
|
|
U.K. COMMERCIAL PROPERTY |
Capital values continue to increase but are perceived to be reaching a plateau for secondary stocks
Letting market in Central London continues to strengthen
|
Sustainability of this recovery is questionable
Economic recovery remains fragile in the light of excessive UK Government debt and the impact of fiscal tightening
|
Focus on asset management and maintaining income
Prime long term income is desirable, but remains difficult to source
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Page last updated July, 2010 ID1716
