A journey through investment markets
- 2 min reading time
When you invest in shares, you are supplying capital to companies whose stock is traded on exchanges around the world. In return, you own a small part of these businesses.
Global stock exchanges
Stock exchanges are often represented by an index, which shows how that market is performing.
Here are some of the best known:
- UK - FTSE 100; 250; AIM
- US - S&P 500/Down Jones Industrial Average/NASDAQ Composite
- Tokyo - NIKKEI 225
- China - SSE Composite
- Brazil - Bovespa
Markets: opportunities & challenges
Each market is different. Here is some of the key information you might consider when choosing where to invest.
UK
Economic trend:
More domestic focus
Key sectors:
Financial services; cars; manufacturing
Future view:
Renewables
Economic trend:
More domestic focus
Key sectors:
Financial services; cars; manufacturing
Future view:
Renewables
Investors like:
Educated workforce
Tax regime
Investors don't like:
Brexit
Inflexible workforce
US
Economic trend:
Moving away from managed funds
Key sectors:
Pharmaceuticals; aerospace; IT
Future view:
Cloud computing
Investors like:
Access to global markets
Low taxation
Investors don't like:
Protectionist policies
Europe
Economic trend:
Consumer-driven economy
Key sectors:
Engineering; automotive; chemicals
Future view:
Changing political dynamics
Economic trend:
Consumer-driven economy
Key sectors:
Engineering; automotive; chemicals
Future view:
Changing political dynamics
Investors like:
Consistent regulatory climate
Good infrastructure
Investors don't like:
Tax regime
Increasing uncertainty following Brexit
China & India
Economic trend:
Growing middle class
Key sectors:
Manufacturing; raw materials; food and drink
Future view:
Increased R&D focus
Investors like:
Huge domestic markets
Access to raw materials
Investors don't like:
Political control of currency and markets
Emerging Markets
(e.g. Brazil and Russia)Economic trend:
Continued focus on natural resources
Key sectors:
Oil and gas; food and drink; heavy manufacturing
Future view:
High tech manufacturing
Economic trend:
Continued focus on natural resources
Key sectors:
Oil and gas; food and drink; heavy manufacturing
Future view:
High tech manufacturing
Investors like:
Rising middle class
Strategic location
Investors don't like:
Political and currency uncertainty
Any information provided should not be considered personal advice. Past performance is not a guide to future performance. You may not get back the full amount you invest. If you have any doubts about making your own investment decisions, seek financial advice. Tax treatment depends on individual circumstances and may be subject to change in the future. The information given is not intended to provide legal, tax or financial advice.
