Market Update Week to 9th October 2020

Global equity markets had a strong week.  The FTSE 100 index was up 1.9% to a three-week high as optimism about a stimulus package in the United States lifted sentiment.  There has been a lot of back and forth in relation to what US politicians are pushing for but ultimately there is hope that some sort of a relief package will be agreed upon.

Naturally, the US equity markets were also strong after President Donald Trump threw his support behind a big stimulus package, saying he’d like to see more than what’s on the table now from either side.

The Dow Jones 30 ended the week up 3.3% which was its best weekly performance since 7 August 2020.  The S&P 500 and Nasdaq gained 3.8% and 4.6% respectively for the week which were their best weekly performances since 2 July 2020.

Weekly performance up to 9 October 2020
FTSE 100 (UK) +1.9%
Dow 30 (US) +3.3%
Euro Stoxx 50 (Europe) +2.6%
Nikkei 225 (Japan) +2.6%

In terms of £ Sterling, it closed the week (to 9 October), at 1.30 US Dollars, which was 0.9% higher than the figure at the end of the previous week (2 October).

Against the Euro, £ Sterling closed on 9 October at 1.10 Euros, which was 0.1% lower than the closing figure on 2 October.

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 – 9TH OCTOBER

US:  Trump’s change of heart boosts shares
UK:  Talks expected to continue past unofficial deadline
Europe: Healthy increase in retail sales in August

Read more >>

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