October was a tough month for global equity markets as rising coronavirus cases have resulted in tougher restrictions being imposed by governments. This has created fears that the economic recovery will slow.
|Monthly performance to end of October 2020|
|FTSE 100 (UK)||-4.9%|
|Dow 30 (US)||-4.6%|
|Euro Stoxx 50 (Europe)||-7.4%|
|Nikkei 225 (Japan)||-0.9%|
In terms of currency, £ Sterling ended October at 1.29 US Dollars. This was 0.2% higher than the figure at the end of September. Against the Euro, £ Sterling ended October at 1.11 Euros, which was 0.8% higher than the September closing figure.
Inflation, as measured by the Consumer Prices Index including owner occupiers’ housing costs (CPIH), was 0.7% in September 2020 (this is September’s data which is reported in October). This was up from 0.5% in the previous month with transport costs, and restaurant and café prices, following the end of the Eat Out to Help Out scheme, making the largest upward contributions. The 12-month rate for the Consumer Prices Index (CPI) rate which excludes owner occupied housing costs and council tax was 0.5% in September, up from 0.2% in August.
There were no further changes to the Bank of England base rate last week following the two previous cuts in March. The current rate remains at 0.1%.