The Bank of England Monetary Policy Committee held interest rates at 0.25% in October. Inflation rose to 1% as the impact of the weakening pound starts to be felt by consumers.  UK growth outperformed post-Brexit predictions of 0.3% as the economy grew 0.5% in the three months to September. The FTSE 100 almost broke through its record high reaching 7,097.50 before retreating to finish the month 0.8% higher at 6,954.22.

Sterling has continued its downward spiral against the dollar, a trend that shows little sign of abating. This will benefit a number of companies in the FTSE 100 that have dollar based earnings, however, for importers this will increase the cost of their goods.

Across the pond, the race to the White House nears its conclusion and we await to see the impact of the outcome.

Following a strong September for oil, which peaked at US$53.14 per barrel in mid-October, the price of crude has eased as the month has progressed finishing the month down 1.5%. Gold has also retreated in the month down almost 3% from September.

• FTSE 100 – 6,954.22 *
• GBP/USD – 1.2189 ^
• GBP/Euro – 1.1110 ^
• Brent Crude – $ 48.30 *
• Gold – $1,277.21 (per oz) *

As at 31 October 2016

* Source www.bloomberg.com

^ Source www.xe.com

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