Openwork Market Summary – May 2020



Like April, the last working day of May saw global equity markets fall on the back of a reported press conference by Donald Trump on China, although it ended up not being as disruptive to trade and finance as had been feared.

Despite this, global equity markets enjoyed gains in May lifted by optimism over the easing of lockdowns put in place to contain the coronavirus pandemic and economic relief efforts by Governments, the EU and the Federal Reserve and Congress in the United States.

  Weekly performance to 29 May 2020 Monthly performance to end of May 2020
FTSE 100 (UK) +1.4% +3.0%
Dow 30 (US) +3.8% +4.3%
Euro Stoxx 50 (Europe) +5.0% +4.2%
Nikkei 225 (Japan) +7.3% +8.3%

 

In terms of currency, £ Sterling ended May at 1.23 US Dollars. This was 2.0% lower than the figure at the end of April. Similarly, against the Euro, £ Sterling ended May at 1.11 Euros, which was 3.2% lower than the April closing figure.

Inflation, as measured by the Consumer Prices Index including owner occupiers’ housing costs (CPIH) was 0.9% in April 2020 (this is April’s data which is reported in May). This was down from 1.5% in the previous month largely due to falling energy and fuel pump prices. The 12-month rate for the Consumer Prices Index (CPI) rate which excludes owner occupied housing costs and council tax was 0.8% in April, also down from 1.5% in March.

The Bank of England maintained interest rates at 0.10% in May, following the two rate cuts in March. The first cut to 0.25% was on 11 March followed by a further cut to 0.1% on 19 March.

The Omnis Managed funds, Openwork Graphene Model Portfolios and Omnis Managed Portfolio Service provides clients with a diversified asset allocation in line with their Attitude to Risk. We believe this multi-asset approach aims to minimise global equity market falls in volatile periods.

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