Market Update Week to 2nd October 2020

Last week saw most major global equity markets record small gains. Japan’s Nikkei 225 was an exception.

Weekly performance up to 2 October 2020
FTSE 100 (UK) +1.0%
Dow 30 (US) +1.9%
Euro Stoxx 50 (Europe) +1.7%
Nikkei 225 (Japan) -0.8%

In terms of £ Sterling, it closed the week (to 2 October), at 1.29 US Dollars, which was 1.5% higher than the figure at the end of the previous week (25 September).

Against the Euro, £ Sterling closed on 2 October at 1.10 Euros, which was 0.8% higher than the closing figure on 25 September.

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%.

The Omnis Managed funds, Openwork Graphene Model Portfolios and Omnis Managed Portfolio Service provide you with a diversified asset allocation in line with your Attitude to Risk, investing in Developed Market Equities, such as UK, US, Europe and Asia Pacific as well as Emerging Market equities.  Cautious and Balanced investors will also have significant holdings in UK and Global Bonds, as well as Alternative Strategies.

We believe this multi-asset approach aims to minimise global equity market falls in volatile periods.  Past performance is not a guide to future performance.  The value of an investment and any income from it can fall as well as rise as a result of market and currency fluctuations.  You may not get back the amount you originally invested.

OMNIS INVESTMENT MARKET UPDATE – 2nd OCTOBER

Markets: US President’s diagnosis elevates uncertainty
UK:  EU legal action weighs on pound  
US:  Slowing jobs market highlights urgency of new relief package
China:  Exports remain on upward trajectory
Oil:  Prices fall as virus cases rise

Read more >>

FINANCIAL VIEWPOINT – MONEY & MORTGAGES – 2020 The Story So Far…

Little did we know, as we entered a new decade, what was in store for the global economy in 2020. Around the globe, the Covid-19 pandemic has inflicted a huge human cost. The response, and the measures to reduce the spread of the virus have inevitably had a significant impact on global economic activity.

A recent Organisation for Economic Co-operation and Development (OECD) outlook, cautioned, ‘as restrictions begin to be eased, the path to economic recovery remains highly uncertain and vulnerable to a second wave of infections. With or without a second outbreak, the consequences will be severe and long-lasting.’ With business activity frozen in many sectors, confidence has understandably been undermined. With lockdowns now easing in some regions and economies beginning to reopen, many major indices have rebounded from the lows reached in March as the pandemic took hold.

Financial planning is all about preparing for those things that may not be so certain (and taxes). Plans should be reviewed regularly so they adapt to changes in your circumstances and reflect developments in the wider economy and financial markets.  Read more >>

At Money & Mortgages, our team are working and available during the coronavirus lockdown and we’re happy to arrange video meetings and phone appointments.  For more information please contact us on 0161 505 0601 or via email info@moneymortgages.co.uk.

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