Markets Update

At the end of January, several major global markets closed in negative territory. The recently signed US-China trade deal was expected to lift the global economy, but the coronavirus outbreak, coupled with lethargic US economic data and mixed corporate earnings, has intensified global growth concerns.

In the UK, the FTSE 100 closed on Brexit day down 3.40% to end January on 7,286.01. The FTSE 250 followed suit, losing 3.38%. The mood was similarly negative on European markets, as the Euro Stoxx declined 2.78% in the month. In the US, the blue-chip Dow Jones Industrial Average had its first monthly loss since August, while the Nasdaq was supported by strong earnings from Amazon.

On the foreign exchanges, sterling closed the month at $1.32 against the US dollar. The euro closed at €1.18 against sterling and at $1.12 against the US dollar.

Gold had its best performance in five months as concerns drove investors toward safe-haven assets. The precious metal is currently trading at around $1,590.14 a troy ounce, a gain of 4.82% on the month.

Crude prices slipped as disruptions to supply chains and travel curbs took hold. Traders continue to worry about the virus’ impact on global demand. Brent crude is currently trading at around $56 a barrel, a loss of over 15% on the month.

(at 31/01/20)
(since 31/12/19)
FTSE 100 7,286.01 Down 3.40%
FTSE 250 21,143.49 Down 3.38%
FTSE AIM 950.99 Down 0.76%
EURO STOXX 50 3,640.91 Down 2.78%
NASDAQ Composite 9,150.94 Up 1.99%
DOW JONES 28,256.03 Down 0.99%
NIKKEI 225 23,205.18 Down 1.91%

Figues as of 5th February 2020