The FTSE all-share (excluding investment trusts) is down just over 5% this week and year-to-date, but still some 5% above the low point of 3,216 reached mid-October.
In contrast, the yield for 10-year UK Government bonds of 1.86% is at its lowest point this year and down significantly from 3.03% at the start of this year.
It would appear that equity markets are now converging with fixed-income markets by pricing in a gloomier economic outlook.
The video below has the great merit of explaining very clearly and cleverly the impact of quantitative easing on both equity and fixed-income markets, covering key regions globally.
One thing is certain: uncertainty remains, hence the recent spike in volatility.
Source: David McWilliams: Europe’s QE quandry from Woodford Investment Management LLP on Vimeo
As gold sponsor of last week’s IR Society Best Practice Awards 2014, we ran a competition for event attendees to visit our new website to win one of three fantastic prizes. The competition closed at noon today and winners were chosen at random by our Head of IR Services, Isabel Richardson.
We are pleased to announce the winners as follows:
iPad Air 2 (wifi & 64GB)
Lisa Williams, Debenhams PLC
Rimowa Salsa Air four-wheel cabin suitcase
Lucy Driver, Ophir Energy PLC
Bugatti Volvo crumpet toaster
Peter Connor, Sepura PLC
Thank you to everyone that entered and congratulations to our three winners!