Market Commentary - April
02 May 2018
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$75.17. The price has risen on the back of US sanctions against Iran which have reduced global supply.
| 30 April 2018 | 1 month | 6 months | 12 months | |
|---|---|---|---|---|
| FTSE 100 | 7,056.61 | 6.42% | 0.22% | 4.24% |
| GBP/USD | 1.3753 | -1.91% | 3.59% | 6.31% |
| GBP/EUR | 1.1389 | -0.19% | -0.07% | -4.08% |
| Brent Crude (US$) | 75.17 | 6.97% | 22.49% | 45.31% |
| Gold (US$ per oz) | 1,315.39 | -0.22% | 3.49% | 3.71% |
Disclaimer:
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.
