Market Monitor – August 2016

September 8th, 2016, by Georgina Ogilvie-Jones

Global equities rose again in August, with the largest gains being seen in Sterling terms due to currency translation effects. After falling to a 31-year low in July, Sterling has remained weak compared to the US Dollar and the Euro. This has enhanced returns from global and international regional funds and indices in Sterling terms. The S&P 500 has a total return of 20.79% in Sterling terms. Conversely, this return is 7.33% in US Dollar terms, indicating that approximately 13.5% of the UK total return figure is attributable to currency effects. Additionally, the FTSE World Europe ex UK index has made a loss of 2.22% in composite local currency terms in the year to date but has a total return of 12.38% in Sterling meaning that all of this return is attributable to currency differentials…

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