Market Commentary February


Craig Hendry

Craig Hendry

Managing Director & Chartered Financial Planner


The FTSE 100 continued its recent upward trajectory closing the month at 7,263.44, amid the backdrop of weak Sterling. 

Despite Consumer Price Inflation reaching 1.8% (year on year), the Bank of England Monetary Policy Committee held the base rate of interest at 0.25%. With inflation creeping up pressure will increase on the Bank to take action, should inflation continue its rapid rise.

In the US, the Dow Jones continues to reach new highs closing the month at 20,812.24. The Federal Reserve held interest rates at 0.75% at their February meeting. Somewhat ambiguously, the minutes of the meeting noted an expectation that interest rates will rise “soon”.

Finally, with the end of the financial year looming, it is important that you consider using the allowances available to you.

 28 February 20171 month6 months12 months
FTSE 1007,263.442.31%7.11%19.13%
GBP/USD1.2425-1.26%-5.35%-10.75%
GBP/EUR1.17010.37%-0.65%-8.67%
Brent Crude (US$)56.511.45%20.13%57.10%
Gold (US$ per oz)1,248.443.12%-4.62%0.79%

Sources

www.xe.com

www.bloomberg.com

This information does not constitute advice to undertake a transaction and professional advice should be taken before investing. Any observations are purely commentary on markets.  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.