Market Commentary May 2017


Craig Hendry

Craig Hendry

Managing Director & Chartered Financial Planner

01 June 2017


The FTSE 100 reached an all-time high in May of 7,547.63 as the pound continues to be weak against the dollar. Despite the threat of an energy price cap, the major energy providers have had a good month.

The Bank of England voted 7-1 to keep the base rate of interest at 0.25% in its May meeting. It did note that inflation has risen to 2.7% which is in excess of the Bank’s target of 2%. Should inflation continue to increase it will put pressure on the bank to consider raising the base rate. 

Oil has had a tumultuous month with the price falling to a low of $48.38. Subsequently, OPEC members have announced that there will be an extension to the production cut that was agreed back in November until March 2018. This news has led oil to finish the month at $50.31 - around 4% up from its low.

The € has fallen 3% against the £ in May as speculation mounts that Greece will default on its latest repayment of its bailout.

The next major event for markets to negotiate will be the General Election on 8 June.

 31 May 20171 month6 months12 months
FTSE 1007,519.954.39%10.85%20.69%
GBP/USD1.2899-0.29%3.32%-11.24%
GBP/EUR1.1480-3.32%-2.71%-12.04%
Brent Crude (US$)50.31-2.75%-0.32%1.25%
Gold (US$ per oz)1,268.920.05%8.16%4.41%

Sources

XE.com

Bloomberg.com

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Nothing in this communication constitutes advice to undertake a transaction and professional advice should be taken before investing. Any observations are purely commentary on markets.  This material is not investment research and the content should not be treated as an offer or invitation to buy or sell securities. Past performance is not a reliable indicator of future results and is no guarantee. The value of investments may fall as well as rise. Changes in exchange rates between currencies can cause investments or income to go up or down.

Disclaimer: While all possible care is taken in the completion of this blog, no responsibility for loss occasioned by any person acting or refraining from action as a result of the information contained herein can be accepted by this firm.


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