Market Commentary - June
03 July 2018
UK High Street retailers have continued to post disappointing results. This month Debenhams and John Lewis have issued profits warnings, albeit John Lewis has undertaken a large investment in the Partnership. In spite of these issues the FTSE100 finished the month just slightly down -0.54% in June. Interestingly, from the start of the year the FTSE100 has dipped -0.66% but gained 4.43% over the last 12 months.
Oil has hit 3 year highs of US$79.44 amid falling inventories in the US. This follows on supply issues in Libya which has had some disruption at its ports.
Interest rates in the UK remained at 0.5%. all eyes turn to the next meeting in August where, although the rate may not rise, the probability of an interest rate has increased. Inflation remains steady at 2.4% despite increasing fuel prices.
In the US, the economic recover appears to be on track as the Federal Reserve increased the base rate of interest to a range of 1.75-2%. The apparently neverending trade war saga continues to rumble on with no clear indication as to whether or not the rhetoric will be acted upon.
| 29 June 18 | 1 month | 6 months | 12 months | |
|---|---|---|---|---|
| FTSE 100 | 7,636.93 | -0.54% | -0.66% | 4.43% |
| GBP/USD | 1.3196 | -0.72% | -2.41% | 1.55% |
| GBP/EUR | 1.1302 | -0.73% | 0.47% | -0.75% |
| Brent Crude (US$) | 79.44 | 3.76% | 18.80% | 65.78% |
| Gold (US$ per oz) | 1,252.60 | -3.54% | -3.85% | 0.89% |
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.
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