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(From Financial Director)
Byline: Graeme Johnston.
Economic background
The prevailing mood in financial markets changed little over August.
Economic releases continued to provide positive surprises and, while the US remained at the fore of recovery, there was further evidence of revival elsewhere in the world. News from the corporate sector confirms the worst may be past.
This all provided fuel for equities to extend their rally - the FTSE World Index rose another 4% in August in sterling terms, reaching its highest level for over a year. Within global averages, areas perceived as sensitive to economic recovery were in greatest demand. On a regional basis, Japan and the rest of Asia performed well. Sectorally, global industrial stocks rose over 8% in sterling terms, while pharmaceutical stocks fell.
Equities