Openwork Market Update 05/11/2018



October proved a difficult month for investors. The trade tensions between the US and China, on-going Brexit negotiations and the EU’s rejection of Italy’s draft budget all seemed to weigh heavily on global equity markets.

The FTSE 100 ended October at 7,128.10, which was 5.1% lower than the September closing figure of 7,510.20.

Similarly, in the US, the Dow Jones Industrial Average’s performance was down 5.1% as well, closing October at 25,115.76.

In terms of £ Sterling, it ended October at 1.28 US Dollars. This was 2.1% lower than the closing figure at the end of September.

Against the Euro, the £ Sterling strengthened ending October at 1.13 Euros, which was 0.5% higher than the September closing figure.

Inflation, as measured by the Consumer Prices Index including owner occupiers’ housing costs (CPIH), was 2.2% in September 2018 (this is September’s data which is reported in October). This was down from 2.4% the previous month. The 12-month rate for the Consumer Prices Index (CPI) rate which excludes owner occupied housing costs and council tax was 2.4% in September 2018, down from 2.7% in August 2018.

The Bank of England maintained interest rates at 0.75% in October following the increase in August. Despite the drop in inflation, this means long-suffering deposit savers continue to lose money in real terms when you consider the rate of savings interest compared to the rate of inflation.

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