A new year a new start and so far it is a good one. On the first day of the new quarter the FTSE 100 was trading at a 9-month high. This is partially reflecting the low price of UK stocks relative to their global peers and the concentration of oil, commodity, and pharmaceutical stocks which investors have switched to from tech stocks. In the UK there have been good trading statements about high street sales and even some bid speculation which has not been seen for a while.
Oil price is down 16% this quarter. Prices at the pump have started to come down, although not quickly enough. Gas prices are down 30% this quarter. Eventually this will help disposable income as the year progresses.
Markets improved from their October lows. The FTSE 350 up 9%. The US stock markets were mixed S&P 500 up 1% and the Nasdaq which contains technology and biotech stocks down 7%. The HSBC MSCI World ETF ended the quarter -2%. In short UK stocks outperforming and global stocks slightly down. This will be reflected in your portfolios where we favour UK and higher yielding stocks.
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