Market Commentary - April

Craig Hendry

Craig Hendry

Managing Director & Chartered Financial Planner

The FTSE 100 rose 6.42% in April recovering the losses sustained in March. One of the main drivers has been the surge in oil prices with BP and Royal Dutch Shell posting healthy gains. In addition, the proposed merger of Sainsbury’s and Asda has seen the supermarket sector rally. Both Sainsbury’s and Asda believe the merger will lead to lower prices for the consumer, however, the deal will still need approval from the Competition and Markets Authority before it can be finalised.

Inflation eased again this month to 2.5% with average weekly earnings rising to 2.8%. For the first time in over a year average weekly earnings are ahead of inflation. The EY Item Club has suggested that interest rates would rise twice this year, however, with inflation falling the expectation of a May increase has diminished.

Oil has had another strong month up 6.97% to US$75.17. The price has risen on the back of US sanctions against Iran which have reduced global supply.

 30 April 20181 month6 months12 months
FTSE 1007,056.616.42%0.22%4.24%
Brent Crude (US$)75.176.97%22.49%45.31%
Gold (US$ per oz)1,315.39-0.22%3.49%3.71%


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