Market Commentary July 2019


Craig Hendry

Craig Hendry

Managing Director & Chartered Financial Planner


The main UK index made a gain of over 2% for the month of July as the new Prime Minister entered No. 10 Downing Street. 

As preparations for a no-deal Brexit on 31 October gathered momentum, sterling fell on the currency markets. Whilst this meant our pound bought less abroad, it was good news for UK companies repatriating overseas currency back to the UK.

For the month of July the top 5 FTSE 100 rising stock were:

  • London Stock Exchange PLC +18%
  • Just Eat PLC +15%
  • Burberry Group PLC +14%
  • Smith & Nephew PLC +14%
  • Vodafone PLC +11%

London Stock Exchange PLC share price rose following merger talks with Refinitiv, a global provider of financial data and infrastructure.

For the month of July the top 5 FTSE 100 falling stock were:

  • Fresnillo PLC -30%
  • Micro Focus International PLC -17%
  • Centrica PLC -16%
  • Anglo American PLC -11%
  • St James’s Place PLC -10%

Fresnillo PLC fell following a trading update advising of lower commodity prices and turnover, with profits down around 45%.

From a commodities perspective, rising tension in the Strait of Hormuz caused the price of crude oil to rise at the start of July before falling back to finish the month lower.

On the evening of 31 July, the US Federal reserve announced that it had made its first interest rate cut of 0.25% since the financial crisis. However, comments made by the Chairman left investors wondering about commitment to further rate cuts in the future.

 31 July 20191 month6 months12 months24 months 36 months48 months60 months
FTSE 1007,586.782.17%8.87%-2.09%2.91%12.82%13.30%

12.73%

GBP/USD1.2159-4.21%-7.20%8.30%-7.98%-8.10%-22.18%-27.99%
GBP/EUR1.0978-1.76%-4.15%-2.88%-1.62%-7.25%-22.79%-12.95%
Brent Crude (US$)58.55-1.68%8.85%-14.85%16.70%40.75%24.26%-40.36%
Gold (US$ per oz)1,412.331.45%6.90%15.40%11.25%4.55%28.90%10.14%

 

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 July 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