Market Analysis

 

Given the global political machinations seen in July, it is no surprise that the FTSE100 had a volatile month with 10 trading days seeing falls and 11 days of gains. However, the UK’s benchmark index managed to end the month in positive territory gaining 0.81% to finish at 7,372.00. The wider FTSE250, which represents a broader church of constituent UK based companies, fared better, gaining 2.28% to close at 19,781.14 whilst the junior AIM market followed suit finishing at 983.93 for a 1.86% improvement.

 

The Dow Jones index in the USA continued its bull run, lifting by 2.54% to close the month out at 21,891.12, while the S&P 500 index reached an all-time high in July of 2,477.83. The Nasdaq index, heavily influenced by the big technology stocks, performed even better, gaining 3.38% to finish at 6,348.12.

 

The mainland European markets trod water with the Eurostoxx 50 moving forward by a modest 0.22% and ending July at 3,449.36. Japan’s Nikkei 225 unfortunately managed to buck its three-month bullish trend, losing 0.54% to close out the month at 19,925.18.

 

On the foreign exchange markets sterling lost ground against the Euro currency, drifting 1.77% to €1.11, but gaining by 1.54% against the US Dollar to $1.32, so it has now recovered 7.32% in the year to date. The greenback also suffered against the Euro, losing 3.51% in the month to end at $1.18 to show a depreciation of 12.38% in the year to date.

 

Precious metals saw Gold recovering the lost ground it made in June, to close at $1,269.24 a Troy ounce, up 10.28% in the year to date. Whilst ‘Black Gold’ – Oil – had a strong month’s trading, finishing at $52.65 a barrel, as measured by the Brent Crude benchmark. This was an impressive monthly gain of 9.87%.

 

 

It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor.

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