Around the world in 5 investment markets
When you invest in shares, you provide extra capital to companies – in return, they give you a small part of the business. These shares (also known as stocks) are traded on the stock exchange.
The stock exchange map
Stock exchanges are often represented by an index, which shows how that market is performing. Here are some of the best known.
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
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
Investors like:
Consistent regulatory climate
Good infrastructure
Investors don't like:
Tax regime
Increasing uncertainty following
Brexit
China and 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
Investors like:
Rising middle class
Strategic location
Investors don't like:
Political and currency uncertainty
Risk notice
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.
