Market Numbers & News 25th April 2014
The FTSE 100 closed at 6685.69 +60.44 points +0.91% on previous weeks close 6625.25
+259.27 points +4.03% against a year ago at 6426.42
“In House”, we regard the FTSE 100 index as being somewhat volatile so that direct comparison with more balanced or cautiously constructed portfolios will not always give an appropriate result although reviewing the index is useful as a general guide to market activity in the larger capitalised market.
Most sectors showed a mixed response over the previous week.
Sectors which performed well over the last week include:
Oil & Gas (Oil & Gas Producers, Oil Equipment Servicestion), which closed at
8830.79 +1.10% on the week
Brent Crude closed at 109.58 (last week 109.53)
Bank of England Base (Repo) Rate at 0.50% (since 05/03/2009)
One Pound GBP buys 1.6812 USD (lw 1.68098 USD) and 1.2149 EUROS (lw 1.2149 EUROS)
Gold PM London Fix at 1301.25 USD per troy ounce (last week 1299.00)
UK FTSE Actuaries Indices 15 year Gilt Yield on 15th of the month approx. 3.09% (year ago 2.27%)
UKRAINE: The unrest in the Ukraine continues to cause uncertainty in the financial markets.
However late last night things finally seemed to making some progress as Russia stated its support for an end to military operations in the region.
BABY BOOMER TIME BOMB: According to a report from the Institute for Public Policy Research, as the Baby Boomer generation reaches retirement and then moves through into older age, living longer yet not always healthier lives, the demand for Long Term Care Services will outstrip supply of facilities based on current trends, thus putting a strain on the sector and causing shortages in available care provision. Our own in house view is that in the shorter term, depending on regulation and legislation of this sector, prices for services could well increase at an even faster rate than the already above average inflation rate that we have experienced in the recent past. Care provision is highly labour intensive with some areas of care requiring specialist training over many years. There is always a delay in catch up… Government funding of some of the costs will probably not change this potential supply demand issue.
PENSIONS IN SCOTLAND: Ex Prime minister Gordon Brown has stated his opinion that the cost of administering pensions in Scotland as an independent state would pro rata be considerably more expensive than if Scotland stayed part of the United Kingdom.
A number of prominent companies have already voiced their concerns over an independent Scotland and I doubt we have heard the last of the argument that there appears little financially sensible reason why independence should be considered at all…
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