Equity and commodity markets
The following chart shows the returns on a range of international stock markets and commodities in 2013.
A few notes-
- Japan was easily the strongest market in this selection in 2013 (+56.7%)
- The FTSE 100 was the weakest of the G7 markets here.
- Not a good year for the BRICS.
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.
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.
- 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).
- The strongest sterling-adjusted market in 2013 in this selection was Nasdaq (+35.7%).
- The second strongest market was the FTSE 250.
- 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.
- 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…
- …and the same for gold and silver as sterling appreciated against the US dollar in the year.