Emerging Markets Trim Monthly Gains, U.K. Stocks Decline

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Emerging Markets Trim Monthly Gains, U.K. Stocks Decline
Emerging Markets Trim Monthly Gains, U.K. Stocks Decline

Emerging Markets Trim Monthly Gains, U.K. Stocks Decline

Indian lenders retreated on the concern that the Reserve Bank of India will tighten monetary-policy further. However, the country has started receiving attractive overseas investments, as investors have pumped in over Rs 13,000 crore (USD 2 billion) in the Indian stock market this month. This according to several analysts has been made possible by RBI Governor Raghuram Rajan’s announcement for measures to boost the weakening rupee and reviving economic growth.

Bad Week for Indonesian and Thai Stocks

A large number of Southeast Asian stocks posted modest gains on Friday trading which was mostly generated by domestic-led buying, particularly the Indonesian market. Indonesia’s main index snapped four days of losses and closed at 0.4 percent up on the day and down 3.5 percent on the week; thus, the country ended up as Southeast Asia’s second-worst performer as compared to Thai stocks, which dropped 4.7 percent on the week.

U.K. Stocks Decline after Mark Carney Declines for Further Stimulus

Amidst the media reports that Bank of England Governor Mark Carney does not see a need for further stimulus and the U.S. budget deadline neared, U.K. stocks fell in Friday’s trading. It extended the FTSE 100 Index’s first weekly loss since August. Countrywide Plc lost significantly as its shares dropped 4.9 percent after Alchemy Partners LLP sold a 5.9 percent stake in the real estate broker.

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Real estate companies too suffered losses after news came that the U.K. government will carry out annual checks on its home-buying-assistance program. The government has been criticized for its lackluster performance on controlling house prices. The impact of the news was that Persimmon Plc (PSN) led house builders ended up faring lower. A gauge of London-listed mining stocks also fell 1.7 percent.

At the close of trading in London, the FTSE 100 lost 52.93 points, or 0.8 percent, to 6,512.66 which extended the week’s retreat to 1.3 percent. According to market analysts, the market retreat can be attributed to Carney’s comments; however, they also believe that it is just a statement of fact, as the country stopped quantitative easing when its economy was much weaker so it would only be crazy to go back.

Toscafund to Invest in Undervalued Commercial Property in England

Toscafund, the London investor run by Martin Hughes, is mulling a plan to invest hundreds of millions in undervalued commercial properties in cities in the U.K. Some targeted cities are Manchester, Leeds, Liverpool and Sheffield as according to the company, there is a lot of scope in these cities.

To contact the reporter of this story: Jonathan Millet at john@forexminute.com