Market Commentary August 2019
04 September 2019
The first few days of August saw the main UK index get off to a bad start as the trade tensions between the US and China ramped up with a new wave of tit for tat tariffs being announced.
This, combined with a swathe of negative corporate news saw the index fall more than 6% before recovering only slightly to end the month 5% down.
As the trade tensions between the US and China gathers momentum and the UK enters what is potentially the final 60 days before the UK leaves the EU, continued market volatility can be expected.
For the month of August the top 5 FTSE 100 rising stock were:
- Fresnillo PLC +21.1%
- ITV PLC +8.6%
- Ocado PLC +7.2%
- Just Eat PLC +6.7%
- Unilever PLC +5.1%
Fresnillo PLC rose as demand for precious metals such as gold and silver increased at the expense of equity risk assets.
For the month of August the top 5 FTSE 100 falling stock were:
- Micro Focus International PLC -36.2%
- Evraz PLC -19%
- Prudential PLC -14.5%
- Standard Life Aberdeen PLC -14.4%
- Legal & General Group PLC -12.8%
Shares in Micro Focus International PLC suffered badly on news that the company would miss full year revenue forecasts and faced a deteriorating macro environment.
On the foreign exchange markets, although sterling was relatively flat for the period, there was continued volatility throughout August as one would expect with the current geopolitical situation.
As tensions between Iran and the USA subsided somewhat, the price of oil fell.
On the domestic front, the rate of inflation increased to 2.1%.
| 31 August 2019 | 1 month | 6 months | 12 months | 24 months | 36 months | 48 months | 60 months | |
|---|---|---|---|---|---|---|---|---|
| FTSE 100 | 7,207.18 | -5.00% | 1.87% | -3.03% | -3.01% | 6.28% | 15.35% | 5.68% |
| GBP/USD | 1.2158 | -0.01% | -8.33% | -6.21% | -5.298% | -7.46% | -20.76% | -26.75% |
| GBP/EUR | 1.1062 | 0.77% | -5.16% | -0.99% | 1.89% | -6.05% | -19.14% | -12.48% |
| Brent Crude (US$) | 55.10 | -5.89% | -3.70% | -21.06% | 16.66% | 23.27% | 11.99% | -42.58% |
| Gold (US$ per oz) | 1,520.50 | 7.66% | 15.69% | 26.59% | 15.01% | 16.16% | 34.02% | 18.09% |
This newsletter is intended to provide a general review of certain topics and its purpose is to inform but NOT to recommend or support any specific investment or course of action.
Figures refer to the past and past performance is not a reliable indicator of future results. You may not get back the full amount of your investment.
Sources of information as at close of business 31 August 2019.
FTSE 100: www.investing.com
Currency: www.investing.com
Commodities: www.investing.com
FTSE 100 Risers & Fallers: www.sharesmagazine.co.uk
Inflation & Interest rates: www.bankofengland.co.uk
