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Friday 5: Syria, special relationships and markets
Five things we learned about making money this week.
by Gavin Lumsden on Aug 30, 2013 at 14:13Follow @FundFanatic
The past week has seen Syria overtake a change in US monetary policy as the biggest fear factor affecting markets and investors.
The prospect of a US-led air strike in response to the use of chemical weapons in Damascus last week caused share prices around the world to fall. As our Accumulator data table shows, the FTSE World index dropped just over 1% in the week to end of Thursday, although the UK's FTSE 100 proved more resilient, falling just 0.1%. For British investors there were bigger losses in Europe (down 3.1% in sterling terms).
The chief risk to investors is a threat to oil supplies if a US attack escalated into a regional conflict. Oil prices, as measured by Brent crude, shot up nearly 5%, piling the pressure on India which relies heavily on energy imports. Its stock market fell 4.6% as the rupee continued to gyrate alarmingly.
Currently, oil trades at around $115 a barrel, some way off the $125 level that experts say would start to hurt the global economy.
Gold and government bonds rose as investors turned to these 'safe havens' amid the uncertainty.
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