Market Commentary June 2019
03 July 2019
The main UK index made a welcome return to positive growth for June, recording a gain of 3.69%
With both the European Central Bank President Mario Draghi’s and the US Federal Reserve showing willingness to cut interest rates to stimulate EU and US economic growth respectively, risk assets rallied throughout the month. The US agreeing a trade deal with Mexico, ending the threat of further trade war provided further support to equities.
For the month of June the top 5 FTSE 100 rising stock were:
- Ashtead Group PLC +24%
- Antofagasta PLC +20%
- Anglo American PLC +19%
- DS Smith PLC +16%
- Standard Life Aberdeen +14%
Ashtead Group PLC share price rose following a 20% jump in annual profits and strong revenue generation in North America.
For the month of June the top 5 FTSE 100 falling stock were:
- Hargreaves Lansdown PLC -13%
- Carnival PLC -10%
- Marks & Spencer Group PLC -8%
- Centrica PLC -6%
- Auto Trader Group PLC -19%
Hargreaves Lansdown PLC fell on the back of their exposure to Woodford Investment Management suspending dealings in the Woodford Equity Income Fund.
On the domestic front, with the current inflation rate matching the Government target of 2% the Bank of England MPC maintained the base rate at 0.75%.
Sterling had a relatively stable month against the Euro and US dollar but on the commodities markets, the price of oil rose again following tensions in the Straits of Hormuz between the US and Iran and the threat of disruption to the supply of oil.
| 30 June 2019 | 1 month | 6 months | 12 months | 24 months | 36 months | 48 months | 60 months | |
| FTSE 100 | 7,425.63 | 3.69% | 10.37% | -2.77% | 1.54% | 14.16% | 13.87% | 10.11% |
| GBP/USD | 1.2641 | 0.10% | -0.73% | -4.29% | -2.96% | -5.03% | -19.53% | -26.10% |
| GBP/EUR | 1.1175 | -1.19% | 0.86% | -1.14% | -1.98% | -6.77% | -20.77% | -10.55% |
| Brent Crude (US$) | 59.55 | 11.31% | 31.14% | -19.69% | 29.34% | 23.22% | 0.13% | -43.48% |
| Gold (US$ per oz) | 1,392.16 | 6.63% | 8.55% | 11.11% | 12.13% | 5.29% | 18.72% | 4.87% |
“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 30 June 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
