Openwork Market Review – October 2020



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%.

 

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