Equity and commodity markets
The following chart shows the returns on a range of international stock markets and commodities in the first quarter of 2014.
- FTSE 100 was the second weakest equity market in the G7
- Apart from India, the BRIC’s 2013 weakness continued into the first quarter.
The following chart shows a sample of currency moves against the British pound in 2014 1Q. For example, the British pound strengthened 7.9% against the Russian Ruble, and fell 4.6% against the New Zealand Dollar.
The following chart shows the returns on the same markets as 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.
- As GBP strengthened a small amount against USD and EUR in the period this had the effect of reducing (marginally) the gains in US and Euro denominated markets in sterling terms.
- Sterling-adjusted, the Indian equity market jumped over gold to be the second strongest market in the period.
- Although the Brazil equity market fell in the period, sterling investors would have seen a gain due to the weakness of GBP against BRL.