Market Commentary December 2019
03 January 2020
Investors welcomed a conclusive General Election result and news that a US/China trade deal was agreed in principle, due to be signed in January.
The FTSE 100 Index rose strongly, posting 9 consecutive days of gains following the result of the General Election. Ending the year with a gain of over 12%, the main index posted a six month high on 27th December before retreating on the final 2 trading sessions of 2019.
UK domestic focused stocks particularly were in positive mood with the perception that the Government’s EU Withdrawal Bill would pass, lifting some of the uncertainty surrounding the UK’s departure from the EU.
For the month of December the top 5 FTSE 100 rising stock were:
- EVRAZ PLC +18.6%
- Carnival PLC +15.7%
- International Consolidated Airlines Group PLC +15.3%
- London Stock Exchange Group PLC +15.2%
- Severn Trent PLC +14.2%
Shares in steelmaker EVRAZ PLC rose in response to the cooling trade tension with China and positive broker upgrades on the company share price.
For the month of December the FTSE 100 had only 4 falling stocks:
- NMC Health PLC -32.35%
- Rolls Royce Group PLC -3.2%
- Unilever PLC -2.93%
- Polymetal International PLC -0.2%
Shares in NMC Health PLC suffered following US Hedge Fund, Muddy Waters Capital LLC making certain allegations against the company and short selling NMC shares.
In the currency markets, the pound rose against both the US Dollar and the EURO.
| 31 December 2019 | 1 month | 6 months | 12 months | 24 months | 36 months | 48 months | 60 months | |
|---|---|---|---|---|---|---|---|---|
| FTSE 100 | 7,542.44 | 2.67% | 1.57% | 12.10% | -1.89% | 5.59% | 20.83% | 14.87% |
| GBP/USD | 1.3261 | 2.54% | 4.46% | 3.93% | -1.88% | 7.48% | -10.03% | -14.86% |
| GBP/EUR | 1.1835 | 0.81% | 6.00% | 6.40% | 5.07% | 0.87% | -12.79% | -8.06% |
Sources of information as at close of business 31 December 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
