Market Commentary May 2019
04 June 2019
The month of May saw an end to the recent month on month gains made by the FTSE 100 with the main index falling nearly 3.5%.
UK stocks followed global peers by responding negatively to a variety of factors throughout May. The first week of May saw weaker than expected Chinese data feed into the markets. Then, failure to conclude a trade deal between the US and China saw the opening salvo of a trade war being fired with both sides applying tariffs on a variety of imports. Several index constituents went ex-dividend and towards the end of the month an apparent threat by China to limit access to rare earth minerals that are used by technology companies pushed equity prices lower.
Top 5 FTSE 100 rising stock were:
- Experian PLC +8%
- RELX PLC +7%
- Smith & Nephew PLC +6%
- Micro Focus International PLC +6%
- Unilever PLC +5%
Experian PLC share price rose as they posted organic revenue growth of 9% which was ahead of analyst expectations.
Top 5 FTSE 100 falling stock were:
- Easyjet PLC -24%
- ITV PLC -22%
- Imperial Brands PLC -20%
- Melrose PLC -19%
- Marks & Spencer PLC -19%
Easyjet PLC fell on the back of mounting half-year losses, rising fuel costs and a drop in revenue per seat.
The US Federal Reserve left interest rates unchanged as did the Bank of England. UK inflation hit a 4 month high of 2.1% following a rise in energy costs.
Gold rose on the back of weakness in the equity markets.
The trade war between the US and China dampened the outlook for global oil demand, leading to crude prices falling.
| 31 May 2019 | 1 month | 6 months | 12 months | |
|---|---|---|---|---|
| FTSE 100 | 7,161.71 | -3.46% | 2.60% | -6.73% |
| GBP/USD | 1.2629 | -3.09% | -1.00% | -5.14% |
| GBP/EUR | 1.1310 | -2.67% | 0.80% | -1.03% |
| Brent Crude (US$) | 61.99 | -8.27% | 5.59% | -17.67% |
| Gold (US$ per oz) | 1,305.58 | 1.02% | 6.97% | 1.05% |
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.Past performance is not necessarily a guide to the future. You may not get back the full amount of your investment.
