2013 market review – international markets

Equity and commodity markets

The following chart shows the returns on a range of international stock markets and commodities in 2013.

International markets returns 2013

A few notes-

  1. Japan was easily the strongest market in this selection in 2013 (+56.7%)
  2. The FTSE 100 was the weakest of the G7 markets here.
  3. Not a good year for the BRICS.

Currency markets

The following chart shows a sample of currency moves against the British pound in the year. For example, the British pound increased 25.4% against the South African Rand, and fell in value 2.1% against the Euro.

Pound sterling performance 2013Equity and commodity markets (sterling)

The following chart shows the returns on the same range of markets shown in the first chart, but this time in sterling terms (i.e. showing the currency-adjusted returns for a UK investor). The order of the markets has been kept the same as in the first chart.

International markets returns 2013 (GBP)Some notes-

  1. UK investors would have seen a return in the Nikkei 225 of 26.6% (down from 56.7% after adjusting for the large fall in the yen against sterling).
  2. The strongest sterling-adjusted market in 2013 in this selection was Nasdaq (+35.7%).
  3. The second strongest market was the FTSE 250.
  4. In domestic currency terms the Australian market rose 15.1% in 2013, but UK investors would have experienced a loss of 3.1% in this market as sterling increased 18.8% against the Aussie dollar.
  5. Except for China, the losses in the BRIC markets were exacerbated by the strength of sterling against their currencies. For example, a domestic currency loss of 15.5% in the Brazilian market became a 28.0% loss for UK investors in that market…
  6. …and the same for gold and silver as sterling appreciated against the US dollar in the year.

(Similar analysis for 2012, 1H 2013.)

 

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