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.
Detailed Market Reports
Detailed reports are available on the following market sectors
|
| Key: |
Positive  |
Neutral  |
Negative  |
| Market |
Positives |
Negatives |
Outlook |
View |
| U.K. EQUITIES |
Valuations are reasonable
Oil price has fallen
|
Continued bad news from banks
More rights issues
Recession globally
More companies warning on trading
Inflation concerns |
Increased market volatility to continue
Weak consumer
Interest rate uncertainty
|
|
| U.K. BONDS |
Signs of sharp slowdown from UK consumer; weak retail sales and falling house prices
Demand for bonds, from pension funds
MPC looking to cut rates once inflation peaks |
Rising UK budget deficit
Big tax shortfalls from credit crunch
Gas and electricity prices set to rise, adding to inflation
UK inflation high, CPI reaches 4.4% RPI at 5%, highest since 1991
High oil prices.
|
Growing evidence of deteriorating economic situation is offset by rising inflation
|
|
| EUROPEAN EQUITIES |
Valuations very attractive
Strong balance sheets
Currency robust
|
Confidence weaker
Profit margins under pressure
|
Growth to moderate
Markets volatile
Global growth set to slow
|
|
| U.S. EQUITIES |
Corporate sector strong
Fed very aggressive
Inflation may moderate
|
Housing crisis continuing
Growth outlook poor
|
Risk of recession
Earnings to moderate
Risk offset by aggresive policy
|
|
ASIA PACIFIC EX JAPAN EQUITIES |
Resilient growth
Better economic fundamentals than elsewhere
Valuations attractive
|
Technical corrections due to credit crisis
Global slowdown
Weak sentiment |
Economic growth to moderate further as exports fall
Markets to remain volatile
China likely to ease policy
|
|
| JAPANESE EQUITIES |
Inflation positive for Japan
Valuations in attractive territory
Growth resilient
|
Consumption subdued
Japan vulnerable to global slowdown |
Short term neutral
Long term outlook attractive |
|
U.K. COMMERCIAL PROPERTY |
Property yields reaching long term trend
Income security is the key
|
Secondary yields continue to worsen due to lack of available finances
Economic outlook has deteriorated with some occupier markets showing signs of weakness
|
Caution is the by-word
for stock selection
Focus on asset management and maintaining income
|
|
|
Page last updated October, 2008 ID1716
