Markets have endured a difficult start to the year with the FTSE 100 falling to 5,673.58 in mid-January as oil prices hit a ten year low. Both the FTSE 100 and oil have recovered to some extent from their lows.

The FTSE picked up in the last week of the month as Japan cut its interest rates to -0.1% for its deposit rate for commercial banks This will result in some banks having to pay to deposit money with the central bank.

Oil hit a low of $27.10 as an embargo on Iranian production was lifted – resulting in more oil being added to the existing glut. The possibility of a deal between OPEC and Russia to cut supply has seen price recover to around $34

During the month gold has seen a gentle rise and gilt yields have relaxed as investors head for safer asset classes.

Although Mario Draghi, head of the European Central Bank, has indicated that he will use his powers to enhance quantitative easing should the economic data in the Eurozone show it is necessary – it is unlikely that any decisions will be made at next month’s ECB meeting.

FTSE 100 – 6,083.80
GBP/USD – 1.4183
GBP/Euro – 1.3092
Brent Crude $34.74
Gold – $1,118.21 (per oz)

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