Market Commentary May

Craig Hendry

Craig Hendry

Managing Director & Chartered Financial Planner

01 June 2016

May has been an uncertain month for investors with the FTSE 100 spending most of the month in negative territory.

In the last few days of the month it recovered to finish the month broadly unchanged. 

In America, the Federal Reserve indicated that further interest rate rises are likely this year as the economic outlook continues to improve. Many observers are tipping June to be the month we see the next increase in rates. The news has impacted the price of gold, with the price relaxing nearly 6% in May.

Oil briefly broke the US$50 a barrel mark for the first time in 2016, before finishing the month at US$49.89. Now that the OPEC cartel seemingly has taken control of world oil production we wait with interest to see the outcome of their meeting in Vienna on 2 June.

As we move ever closer to the European membership referendum on 23 June we expect that markets will be sensitive to any news, be it good or bad, until the outcome of the referendum is known.

FTSE 100 – 6,230.79
GBP/USD – 1.4532
GBP/Euro – 1.3052
Brent Crude $49.89
Gold – $1,217.50 (per oz)
*Figures as at 31 May 2016

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