October Market Update

October was a tough month for global equity markets as rising coronavirus cases have resulted in tougher restrictions being imposed by governments.  This has created fears that the economic recovery will slow.

Monthly performance to end of October 2020
FTSE 100 (UK) -4.9%
Dow 30 (US) -4.6%
Euro Stoxx 50 (Europe) -7.4%
Nikkei 225 (Japan) -0.9%

In terms of currency, £ Sterling ended October at 1.29 US Dollars.  This was 0.2% higher than the figure at the end of September.

Against the Euro, £ Sterling ended October at 1.11 Euros, which was 0.8% higher than the September closing figure.

Inflation, as measured by the Consumer Prices Index including owner occupiers’ housing costs (CPIH), was 0.7% in September 2020 (this is September’s data which is reported in October).  This was up from 0.5% in the previous month with transport costs, and restaurant and café prices, following the end of the Eat Out to Help Out scheme, making the largest upward contributions.  The 12-month rate for the Consumer Prices Index (CPI) rate which excludes owner occupied housing costs and council tax was 0.5% in September, up from 0.2% in August.

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 NOVEMBER

Markets: New lockdowns concern investors
US:  Economic growth rebounds in 3rd Quarter
Europe: ECB signals more support to come
Japan: Central Bank keeps rates on hold
Corporate Earnings: Profits rise at US Tech Companies

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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