If you check the value of your investments or pension today, you’ll probably find you are somewhat poorer than you were a week ago. The FTSE100 fell 2.5% last week and our FTSE SCS index was down nearly 3%. That has set the FTSE SCS Index back two months to where it was on 8th Feb. All the indices are still well up YTD (the FTSE SCS is up 7.25% and the FTSE 100 up 6%) but these were big falls over a short period.
BT (down 2.85% on Friday) ended its stellar run as Morgan Stanley put out a bearish note with renewed concerns over its pension fund deficit and the effects of Ofcom regulatory changes. Vodafone also suffered a setback as a possible bid from Verizon was dismissed and its shares fell 2.2% on Friday as a result. MicroFocus declined 5% last week – most of it on Friday.
“Where the US leads the UK often follows” so we should be worried about what might happen when the markets open on Monday. US job figures disappointed and tech stocks were worst hit. On Friday F5 Networks plunged 18% on a Q1 profits warning. This had knock on effects at rivals Juniper and Cisco.
Then we have renewed worries over the Eurozone as Portugal seems set to reject austerity measures. Oh how I long for a period of tranquillity!