Citywire for Financial Professionals
Stay connected:

View the article online at

Accumulator: pound shields investors from nuclear fallout

The standoff between the US and North Korea dominated markets this week, but UK investors escaped the worst.

Accumulator: pound shields investors from nuclear fallout

Look at this week's Accumulator data table, and you wouldn't have guessed a standoff between two nuclear powers was the news that dominated markets.

Escalating tensions between the US and North Korea rattled investors this week, with the FTSE 100 sliding 222 points, or 3%, over the last three sessions.

But today's sell-off isn't captured by our Accumulator table, which highlights performance over the week to Thursday. That period also includes last Friday's rally, on better-than-expected US jobs data.

Timing issues aside, the pound's fall over the last week has also been a factor. Sterling's decline against the dollar helped to shield investors from losses in the US over the five days to yesterday, despite the S&P 500's biggest fall in three months yesterday.

The pound lost even more ground to the Japanese yen, a traditional safe haven currency at times of stress, transforming losses into gains for UK investors in the country's stocks.

The flight to safety can be seen in the surge in precious metals prices, with gold up 2.7% and silver rallying 4% over the week.

Bonds meanwhile beat shares, with fixed income in all the major markets rallying.

You can access The Accumulator table here.

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

The Citywire Guide to Investment Trusts

In this guide to investment trusts, produced in association with Aberdeen Asset Management, we spoke to many of the leading experts in the field to find out more.

Watch Now

Today's articles

Tools from Citywire Money

From the Forums

+ Start a new discussion

Weekly email from The Lolly

Get simple, easy ways to make more from your money. Just enter your email address below

An error occured while subscribing your email. Please try again later.

Thank you for registering for your weekly newsletter from The Lolly.

Keep an eye out for us in your inbox, and please add to your safe senders list so we don't get junked.

Sorry, this link is not
quite ready yet