Weekly Statistics (source: FT)

Key performance indicators (as at Friday 19 Sep 16:35 GMT): Day-by-day analysis of FTSE 100 Index
This Market Bulletin has been produced in association with The Jupiter Independent Funds Team. Its intended to provide you with a look back at the
events that have affected the performance of global markets in the last fortnight. This is a general market update and should not be considered a comprehensive
or suffcient basis for making decisions.
The US and Europe diverge
Being geographically close to Europe, but sharing a common language
and a special relationship with the United States can provide UK investors
with a unique view of these major global regions. Of late, the fortunes of
the two areas have been in marked contrast, with their equity market
performances refecting very different situations.
The US economy, following a dramatic drop in the GDP growth rate during
the exceptionally cold frst quarter, has rebounded strongly: second quarter
growth has been revised up to 4.2%. The Federal Reserve, which was the
frst central bank to take exceptional steps to avert a crisis in the 2008/09
downturn, looks set to step back from further easing in the next few
months, setting the scene for interest rate rises if the unemployment
picture carries on improving. This has helped the US S&P 500 index
breach the 2,000 point level, a new all-time nominal high and over 200%
up from its intra-day low in March 2009.
In Europe, central bank actions have been limited and late by comparison,
a contributing factor to the negligible economic growth in the euro block.
Expectations are building that concrete actions will need to be taken in
the near future to avert the danger of defation, which could exacerbate
the regions fnancial woes. Mario Draghi, President of the European
Central Bank (ECB), may already have taken the frst steps to move the
region out of its current malaise with Targeted Longer Term Refnancing
Operations (TLTRO), which will provide banks with cheap loans to extend
fnance and bolster their balance sheets. Draghis 2011 Long Term
Refnancing Operation helped confdence to recover, but it required a
promise to do whatever it takes to preserve the euro for markets to make
further headway. There is little optimism about Europe at present, but
European share valuations are around 14% lower than those of their North
American peers and the teams underlying managers remain confdent that
their portfolios are suitably positioned, despite the headwinds currently
buffeting markets.
Government bond markets have also refected these differing trends.
The US 10-year Treasury bond yield has tightened from 3.0% to 2.3%
year-to-date, while the 10-year bond yields of European peers have
plummeted, with German, French and Spanish government debt now
yielding 0.9%, 1.3% and 2.2% respectively. The fact that some investors
are willing to loan money to Spain for less than the US may seem bizarre
to some, but it is a by-product of the lack of growth, infation and any
imminent interest rate rises within the eurozone which has compressed
these yields relative to the US. At current levels European sovereign
bonds, in the teams view,are not pricing in much chance of a healthy
recovery or, alternatively, have already moved in anticipation of the ECB
instigating US-style central bank bond purchases. Either way, a return
to anywhere near target level infation (2%) could make these bonds
look very expensive.
Five and a half years after the low of 2009, commentators and investors
are all too aware of the run that markets have had. On some long term
metrics, equities appear expensive, but in the teams view, many still offer
attractive risk-return profles for the patient investor. The road ahead will
undoubtedly be bumpy and there are risks of which the team must be
aware, but taking a long term view, equities remain its asset class of
choice and the team believes that shares have the potential to do well
over time.
Important information:
The above commentary represents the views of the Fund Manager at the
time of preparation and may be subject to change and this is particularly
likely during periods of rapidly changing market circumstances. Their views
are not necessarily those of Jupiter and should not be interpreted as
investment advice. Every effort is made to ensure the accuracy of any
information provided but no assurances or warranties are given. The value
of investments and the income from them can fall as well as rise and may
be affected by exchange rate variations. You may get back less than
originally invested.
Charges tend to be higher than for conventional Unit Trusts to allow for
a portion of the charges applicable to underlying Funds. On average this
works out at around 0.6% of the net asset value per annum. This Fund can
invest more than 35% of its value in securities issued or guaranteed by an
EEA state. The NURS Key Investor Information Document (KIID),
Supplementary Information Document (SID) and Scheme Particulars are
available from Jupiter on request.
Jupiter Asset Management Limited (JAM) and Jupiter Unit Trust Managers
Limited (JUTM) are authorised and regulated by the Financial Conduct
Authority and their registered address is 1 Grosvenor Place, London
SW1X 7JJ. JAM and JUTM are subsidiaries of Jupiter Fund Management
plc and the group is collectively known as Jupiter.
In association with
CURRENT
VALUE
10 DAY
% CHANGE
FTSE 100 6, 840 - 0.25%
Dow Jones 17, 323 + 1.05%
Nikkei 225 16, 321 + 4.06%