Market Commentary - August


Craig Hendry

Craig Hendry

Managing Director & Chartered Financial Planner

11 September 2018


The UK economy is facing an unusual level of uncertainty because of Brexit. This uncertainty primarily stems from the yet to be defined relationship between the UK and the EU but also from the economy’s response to the new framework once it emerges. The UK government’s White Paper has failed to unite the government or Parliament, leaving open an entire spectrum of possible outcomes.

Inflation rose in July to 2.5% this is reportedly due to increased cost of video games and transport fares in the UK.  

The FTSE 100 closed the month down over 300 points as fresh US sanctions on Russia led to a sell-off in commodities. Sterling fell below 1.30 against the Dollar in August against the fears of a no-deal Brexit.

Oil rose to $76.94 through August as a rise in stocks of refined petroleum products offset a big fall in U.S. crude inventories to the lowest level since 2015

Gold, continued to fall again in August to its lowest price in a year, due to the US economy continuing to expand at a healthy pace.

 31 August 181 month6 months12 months
FTSE 1007,432.42-4.08%2.77%0.02%
GBP/USD1.2960-1.26%-6.02%0.57%
GBP/EUR1.1146-0.60%-1.29%2.88%
Brent Crude (US$)76.943.55%16.97%46.89%
Gold (US$ per oz)1,201.191.88%8.88%-9.10%

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.

Sources:

www.xe.com

www.bloomberg.com

www.bbc.co.uk