Comment: Negative Week for NASDAQ Whilst UK Insurance Companies Suffer Further Blow
March 28, 2014 9:17 am
The NASDAQ is set to post its worst week for almost a year, with equity markets in the US reacting negatively to the ongoing situation in Eastern Europe.
Mining shares, however, have risen on the back of Chinese Premier Li Keqiang’s announced intention to continue infrastructure spending in an effort to boost China’s economy. Glencore Xstrata, Anglo-American and Rio Tinto were all up this morning on the strength of that announcement, at 2.8%, 2.6% and 2.1% respectively.
UK Insurance companies were hit heavily again this morning, after reports surfaced of an impending inquiry by the FCA into insurance and pension policies sold over a thirty-year period from the 1970’s onwards. The inquiry could affect up to 30 million policies, and means that insurance companies have been badly knocked for the second week in a row; in reaction to the news, Resolution is down by 8.5%, Aviva down by 5.2%, Legal & General by 4.6%, Standard Life by 2.7% and Prudential by 2.3%.
Meanwhile, UK macroeconomic figures released today have been decidedly mixed. British consumer confidence has risen to its highest since mid-2007, but that confidence seems built on shaky foundations – figures also show that disposable real income has fallen by 1%, whilst UK household savings fell from 5.6% to 5% in Q4. Furthermore, the UK currently has its biggest current account deficit (5.6%), since comparative records began in 1955.
The NASDAQ is set to post its worst week for almost a year, with equity markets in the US reacting negatively to the ongoing situation in Eastern Europe.
Mining shares, however, have risen on the back of Chinese Premier Li Keqiang’s announced intention to continue infrastructure spending in an effort to boost China’s economy. Glencore Xstrata, Anglo-American and Rio Tinto were all up this morning on the strength of that announcement, at 2.8%, 2.6% and 2.1% respectively.
UK Insurance companies were hit heavily again this morning, after reports surfaced of an impending inquiry by the FCA into insurance and pension policies sold over a thirty-year period from the 1970’s onwards. The inquiry could affect up to 30 million policies, and means that insurance companies have been badly knocked for the second week in a row; in reaction to the news, Resolution is down by 8.5%, Aviva down by 5.2%, Legal & General by 4.6%, Standard Life by 2.7% and Prudential by 2.3%.
Meanwhile, UK macroeconomic figures released today have been decidedly mixed. British consumer confidence has risen to its highest since mid-2007, but that confidence seems built on shaky foundations – figures also show that disposable real income has fallen by 1%, whilst UK household savings fell from 5.6% to 5% in Q4. Furthermore, the UK currently has its biggest current account deficit (5.6%), since comparative records began in 1955.
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