Equities

US large cap indices were weaker once again, with the Nasdaq logging its third consecutive down week. European markets also lost ground, on fears over US rate hikes, as did the TOPIX index in Japan. China’s main indices were pulled lower by reports of refinancing difficulties in the property sector.

Bonds

Yields on US Treasury bonds slipped gently, and prices rose, as sentiment turned more risk averse. Core Eurozone yields tracked their US counterparts lower. Investment grade credit spreads widened slightly, although new issuance in the banks’ sector was well received. High yield credit traded lower as the week ended, in response to weaker equity markets.

Currencies

The US dollar lost ground against all majors, while the yen made gains across the board. The euro rose against the dollar only, while slipping back against sterling and the yen.

Commodities

The oil price continued its recent advance, while European gas prices jumped almost 25% in two days as talks over Ukraine between the US, Nato and Russia collapsed.

Responsible investing

Consumer giant Unilever faced criticism from a major shareholder for ‘displaying sustainability credentials’ at the expense of focusing on its business. The perceived ‘purpose’ of Hellmann’s mayonnaise was at the centre of the contention.