|Index||Third Quarter Change|
|FTSE 100||– 7.04%|
|Dow Jones Industrial||-7.58%|
|Standard & Poor’s 500||-6.94%|
|Euro Stoxx 50 (€)||-9.45%|
|MSCI Emerging Markets (£)||-15.42%|
It was the worst quarter for investors since 2011, but as ever, the raw numbers do not tell the whole story:
- The fall in the FTSE 100 has much to do with its exposure to mining and energy companies, which have suffered as commodity prices have fallen.
- UK Companies outside the FTSE 100 have fared better. The FTSE 250, which is a yardstick for mid-sized companies, fell by less than 5% – hence the lower drop for the broader FTSE All-Share than the FTSE 100.
- Sterling weakened against the main global currencies in the third quarter, reducing the impact of the fall in overseas markets.
- Emerging markets had a torrid time, but it is becoming increasingly clear that the label is too broad. For example, while the Shanghai Composite is now down nearly 30% from the start of the year, the BSE Sensex (India’s main index) has fallen less than 2%.
The falls mean that some value is appearing – the FTSE 100 yields 4% – but volatility is unlikely to disappear in the short term.