Openwork Market Summary – September 2020

Many of the major global equity markets fell back in September (Japan’s Nikkei 225 being one of the exceptions) as rising coronavirus cases fueled fears of the economic recovery stalling.  In fact, the US main markets posted their first down month since March.


  Monthly performance to end of September 2020
FTSE 100 (UK) -1.6%
Dow 30 (US) -2.3%
Euro Stoxx 50 (Europe) -2.4%
Nikkei 225 (Japan) +0.2%

In terms of currency, £ Sterling ended September at 1.29 US Dollars.  This was 3.5% lower than the figure at the end of August. Against the Euro, £ Sterling ended September at 1.10 Euros, which was 1.6% lower than the August closing figure.

Inflation, as measured by the Consumer Prices Index including owner occupiers’ housing costs (CPIH), was 0.5% in August 2020 (this is August’s data which is reported in September).  This was down from 1.1% in the previous month largely due to lower prices in restaurants and cafes, arising from the Eat Out to Help Out Scheme.  The 12-month rate for the Consumer Prices Index (CPI) rate which excludes owner occupied housing costs and council tax was 0.2% in August, down from 1.0% in July.

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%.

With the world continuing to fight coronavirus, global equity markets are likely to remain volatile. So, it remains important for investors to understand their ‘attitude to risk’, capacity for loss and investment objectives.