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“A decent showing from the FTSE 100 on Friday means the index is on track to end the week up 1.1%. While investors will be relieved that it has nudged up in value, it isn’t enough to compensate for the FTSE’s patchy performance this year.
“Anyone putting money in a FTSE 100 tracker at the start of 2018 would have made a mere 0.2% return so far which is worse than you would have got from a top cash savings account,” says Russ Mould, Investment Director at AJ Bell.
Hays
“For all the talk of global growth slowing down, a fourth quarter trading update from international recruitment consultant Hays would suggest the world’s cogs are still turning at good pace.
“Recruitment companies are a good economic bellwether as companies tend to hire in good economic conditions and delay hiring in bad conditions. Equally, individuals tend to keep moving jobs if they are confident about the economy and they stay put if they are worried about more difficult times.
“Hays’ Q4 update shows net fee income growth in every single one of its geographic territories and says full-year operating profit will be ahead of market expectations.
“The UK has the weakest growth at 5%, albeit still a reasonable outcome. Upon closer inspection one can deduce that UK companies may still be slightly nervous about the economy as there is no growth in Hays’ net fee income from permanent jobs.
“Instead, all the growth is coming from temporary jobs, suggesting that companies want to maintain an element of flexibility in their hiring and not commit to taking on permanent staff.”
Ashmore
“The performance of specialist asset manager Ashmore is always interesting for the insight it offers into sentiment towards emerging markets.
“The update for the three months to 30 June revealed a $2.6bn drop in assets under management. While net inflows of $2.6bn would suggest there is still appetite for emerging markets assets, you also have to take into account negative investment performance of $5.2bn.
“Strength in the US dollar relative to local currencies, the looming threat of a trade war and political uncertainty are proving a toxic mix for developing economies.
“However, as Ashmore notes, valuations are now at levels last seen in the immediate aftermath of the US election in 2016. Given this was the precursor to a big emerging markets rally, it is little wonder the asset manager is on the hunt for value opportunities.”
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