05/11/13 Market Movements
Markets closed down 16.78 points at 6,746.84 yesterday.
RSA closed down 6.7% yesterday as its interim management statement was released which indicated that profits will be affected due to severe weather in the UK , Canada and Scandinavia. The group indicated that the return on equity will now be below 10%. RSA stated that their medium term guidance is unchanged and investment income remains on track for around £470m. There have also been recent talks that RSA Insurance group could be the target for a takeover.
Due to the above news we saw other insurers such as Aviva and Legal General close lower.
Markets closed lower yesterday as investors continue to speculate the impact of data on the Federal Reserve’s decision on tapering QE. In addition, the ECB will be meeting this week to review its current interest rate policy. The meeting has the potential that the ECB may make a cut to its main policy rate, to 0.25%. This is due to recent weak inflation readings and what some observers believe to be an increase in strength of the Euro.