In search of Footsie's lost 1,800 points
Article Abstract:
UK share prices have not performed as well as those in the US and this is partly because profits have grown faster for US companies and faster than analysts had forecast. UK share prices are likely to be depressed by interest rate rises so may continue to perform less well than US shares. US economic growth could, however, slow, which would affect corporate earnings, or it could accelerate which would push up bond yields, in turn affecting share prices. UK fiscal policy may be tightened in 1997, and interest rates may be raised, both of which would depress growth and boost bond yields which would help push up share prices.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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The fight for Footsie's future
Article Abstract:
A rise in the value of UK government securities (gilts) should help UK share prices which will seem less clearly expensive in relation to gilts. Institutional investors have become less pessimistic about share prices. Share prices could still be vulnerable to developments in the US and a rise in gilt yields. UK interest rates may also be raised in summer 1997 which would dampen earnings growth in 1998 and this would affect share prices.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
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