Market Commentary September


Craig Hendry

Craig Hendry

Managing Director & Chartered Financial Planner


September saw the Consumer Price Index measure of inflation hit 2.9% - a four year high as the effects of Brexit start to filter through into economic data. Interestingly, Average Weekly Earnings grew 2.1%. This means the cost of living has exceeded wage growth in the last 12 months, making many worse off. Following the jump in inflation, the Bank of England Governor Mark Carney has hinted at a small interest rate rise in the near future.

With inflation rising, Sterling has strengthened and as a result the Pound is up 3.97% against the US$ this month. As noted in previous commentaries, the bulk of earnings of the FTSE 100 are derived in Dollars, so the strengthening Sterling has led the index down 0.78% in September to 7,372.76.

Across the pond, the Dow Jones continues its upward trend and it closed an all-time high of 22,412.59 on 20 September. This is the 41st time the Dow Jones has reached a new high in 2017. The Dow Jones finished the month just off its most recent high at 22,405.09.

Oil up as the effects of production cuts earlier in the year come to fruition with the price per barrel reaching over US$58 before closing the month at US$57.54.

 29 September 20171 month6 months12 months
FTSE 1007,372.76-0.78%0.68%6.86%
GBP/USD1.33993.97%6.90%2.97%
GBP/EUR1.13424.69%-3.20%-2.03%
Brent Crude (US$)57.549.85%8.92%17.28%
Gold (US$ per oz)1,279.75-3.15%2.45%-2.74%

Sources:

www.bloomberg.com

www.xe.com

https://www.thebalance.com/dow-jones-closing-history-top-highs-and-lows-since-1929-3306174

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