Market Commentary January
02 February 2017
2017 started where 2016 finished off as the FTSE 100 broke its own record highs on more than one occasion in January. The Dow Jones in America broke the 20,000 mark for the first time in its history.
GDP grew 0.6% in the last quarter of the year, bring 2016’s growth to 2.1% - marginally ahead of expectations.
More signs of the impact of Brexit have come to the fore as inflation climbed to 1.6%. We have seen a number of household goods providers announcing price increases, given that many of the raw materials for the goods they produce are bought and sold in dollars.
Theresa May has announced her strategy for Brexit, albeit the statement added little to what we already knew. However, we do know that Parliament will have to vote before Article 50 is triggered.
Donald Trump was inaugurated as the 45th President of the US on 20 January. His first actions were to repeal ‘Obama Care’ and to withdraw the US from the Trans-Pacific Partnership. He has also reiterated that he will build a wall along the Mexican border.
| 31 January 2017 | 1 month | 6 months | 12 months | |
|---|---|---|---|---|
| FTSE 100 | 7,099.15 | -0.61% | 5.57% | 16.69% |
| GBP/USD | 1.26 | 1.99% | -5.21% | -11.27% |
| GBP/EUR | 1.17 | -0.27% | -1.90% | -10.95% |
| Brent Crude (US$) | 55.70 | -1.97% | 31.18% | 60.33% |
| Gold (US$ per oz) | 1,210.72 | 5.51% | -10.40% | 8.27% |
Sources
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