Market Commentary October 2019
06 November 2019
Manufacturing data from the US released at the start of October, indicating a significant slowdown, immediately put the world’s main stock markets on the backfoot. This, combined with Prime Minister Boris Johnson’s ‘take it or leave it’ final Brexit offer just a few days later, saw the FTSE 100 index fall by more than 4% in the first week.
Following a revised Brexit Withdrawal Agreement being announced shortly thereafter, the FTSE 100 recovered somewhat but still finished the month of October in negative territory at slightly more than 2% down on the period.
Whilst the equity markets suffered some pain, on the back of the revised Brexit deal, sterling strengthened and posted significant gains against both the US Dollar and the Euro.
For the month of October the top 5 FTSE 100 rising stock were:
- International Consolidated Airlines Group PLC +17.7%
- Barclays PLC +16.8%
- BT Group PLC +15.1%
- AVEVA Group PLC +13.3%
- St James’s Place PLC +13%
Shares in International Consolidated Airlines Group PLC rose strongly following a number of brokers posting bullish notes on the back of IAG’s September Traffic and Capacity statistics and positive sentiment
For the month of October the top 5 FTSE 100 falling stock were:
- Evraz PLC -13.5%
- Smith & Nephew PLC -12%
- NMC Health PLC -11.2%
- Coca Cola PLC -9%
- Imperial Brands PLC -7.25%
Shares in Evraz PLC suffered following a share price downgrade by broker Goldman Sachs
As October closed, The US central bank cut interest rates again, hoping to shield the economy from the impact of trade tension and a global slowdown. The Federal Reserve lowered the target for its benchmark rate by a quarter point, to a range of 1.5% to 1.75%. The move was the third cut in four months.
| 31 October 2019 | 1 month | 6 months | 12 months | 24 months | 36 months | 48 months | 60 months | |
|---|---|---|---|---|---|---|---|---|
| FTSE 100 | 7,248.38 | -2.16% | -2.29% | 1.69% | -3.27% | 4.23% | 13.95% | 10.72% |
| GBP/USD | 1.2940 | 5.31% | -0.72% | 1.36% | -2.58% | 5.68% | -16.13% | -19.11% |
| GBP/EUR | 1.1601 | 2.91% | -0.18% | 2.79% | 1.72% | 4.04% | -17.25% | -9.17% |
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 31 October 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
