Market Commentary October 2018


Craig Hendry

Craig Hendry

Managing Director & Chartered Financial Planner

05 November 2018


    The first couple of weeks of October saw the FTSE 100 come under pressure, as the prospect of interest rates rising faster than had been previously predicted, weighed heavily on asset classes. This, coupled with concerns of a slowdown in global growth caused by the US trade conflict with China, saw the main index fall to a month low of 6,939 before recovering to close the month at 7,128.10, a reduction of more than 4% for the month.

    In economic news, the Bank of England announced that pay is now rising at a faster rate than it has been in the recent past. Anticipated interest rate rises should be gradual and limited, which should bring inflation back to the Bank of England target of 2%..

    The outcome of Brexit negotiations could have a material impact on the UK economy, so an emergency budget is a real possibility once the final Brexit deal (or no deal as the case may be) is known.

     31 October 20181 month6 months12 months
    FTSE 1007,128.10-4.09%1.01%-3.32%
    GBP/USD1.2707-2.00%-9.37%-5.16%
    GBP/EUR1.12700.82%-1.24%-0.63%
    Brent Crude (US$)75.47-2.52%7.40%31.16%
    Gold (US$ per oz)1,214.761.13%-8.35%-5.08%

    Nothing in this communication constitutes advice to undertake a transaction and professional advice should be taken before investing. Any observations are purely commentary on markets.  This material is not investment research and the content should not be treated as an offer or invitation to buy or sell securities. Past performance is not a reliable indicator of future results and is no guarantee. The value of investments may fall as well as rise. Changes in exchange rates between currencies can cause investments or income to go up or down.

    Sources:

    www.xe.com

    www.bloomberg.com

    www.bbc.co.uk

    www.bankofengland.co.uk