Market Commentary September

Craig Hendry

Craig Hendry

Managing Director & Chartered Financial Planner

Starting in the US, the anticipated interest rate increase failed to materialise. The next scheduled meeting of the Federal Open Market Committee (the US equivalent of the Monetary Policy Committee in the UK) is 1-2 November, a week ahead of the Presidential election on 8 November.

It is unlikely that we will see any changes ahead of the election, however, December’s meeting could be very interesting regardless of the outcome of the election.

Following a turbulent start to September Brent Crude rose 6% intraday on 28 September as OPEC announced it has preliminary agreed to reduce oil output at its next meeting at the end of November – however we wait with baited breath to see if they act on this ‘agreement’. It finished the month up 4.63%

In the UK the number of people in employment continues to rise, surprising most analysts. The Bank of England chose to hold interest rates this month at 0.25% as the Consumer Price Index has also held steady at 0.6%.

The FTSE 100 has had a strong month posting a gain of 1.74% as the pound continues to slide against the dollar.

FTSE 100 – 6,899.33

GBP/USD – 1.3013

GBP/Euro – 1.1577

Brent Crude – $49.06

Gold – $1,315.87(per oz)

As at 30 September 2016

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